Order 16 (Employment Relation)
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BMP6005 Work and the Employment Relationship
Executive Summary
Tesco Plc has been the research subject for this document. The researcher has provided
insight into the organisational Employment Relations theoretical frameworks. The researcher
then evaluated the obligations of key Tesco stakeholders in the following section. The study
demonstrates the various approaches and actions that may be used to manage employee
relations in a company. Last but not least, the researcher has made a specific suggestion to the
company about labour and employee relations.
Table of Contents
Introduction
................................................................................................................................
4
Discussion
..................................................................................................................................
5
Conclusion
................................................................................................................................
11
References
................................................................................................................................
13
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Table of Figure
Figure 1: About Company
........................................................................................................
6
Figure 2: Theoretical perspectives of employee relations
.......................................................
8
Figure 3: Major Stakeholders
.................................................................................................
11
Figure 4: Stakeholder management
.......................................................................................
13
Introduction
Employee relations are the term used by the Chartered Institute of Human Resource
Development (CIPD) to describe interactions between employers and employees in the
workplace. The phrase refers to all facets of true two-way communication between
employees and employers in order to comprehend crucial employment-related concerns. In
today's workforce, interpersonal relationships with management are commonplace. In light of
this, collective acts like trade unions and the coordinated voice of workers against bosses
have had a significant impact on labour relations. Additionally, this pattern is quickly
changing as more and more individual behaviors come into play in interactions between
employees and employers (
Ajibola,2022). Rapid changes to the legal framework controlling
employees' rights at work have led to a personalization of interactions in the workplace. On
the opposite end of the scale, trade unions' waning influence leaves a void in the development
and enforcement of workers' rights. Current industrial relations can be studied from both a
monolist and pluralist perspective. To independently construct broad concepts and principles
that describe how something functions, a theoretical approach in that discipline is crucial.
Employment from a Unitarian perspective is a relationship between group members who are
working towards a similar objective. Employment is seen from a pluralistic angle as a
deliberate collaboration between strangers. In order to critically analyse the function of
employee relations in organizations, this study employs a multidimensional method. A
benefit of a multidimensional viewpoint is that governance and work relationship
management may eventually be advantageous to both the business and its employees.
Business and employees may suffer if any of these elements are lacking. The chosen
company for the Task is Tesco plc.
About Company
Tesco plc is a global British retailer of groceries and other goods with its headquarters in
Welwyn Garden City, England. It ranked ninth globally in terms of sales and third globally in
terms of total sales in 2011. The company operates outlets in Slovakia, the Czech Republic,
Hungary, Ireland, and the UK (
Azan and Karimah, 2022). The corporation has a market share
of about 28.4% of the UK's supermarket market. Since the early 1990s, Tesco has grown
internationally, now operating in 11 nations. The business left the US in 2013, but has since
continued to expand abroad. In addition to books, clothing, electronics, furniture, toys, petrol,
software, financial services, telecommunications, and Internet services, Tesco has expanded
its retail offerings since the 1960s. Figure 1: About Company
Source: (
Azan and Karimah, 2022)
Discussion
Nature and theoretical perspectives of Employment Relations
The enterprise organization's efforts to manage and enhance the relationship between
employees and employers are known as industrial relations. Employees can work
productively with the company and put forth a lot of effort to attain their goals in an
organisation with good employee relations because of the fair and non-judgmental
atmosphere it offers(
Budd,2023). Effective employee interactions also aid businesses in
keeping workers on board for the long haul. Employee relationships also assist businesses in
enhancing employee productivity by routinely inspiring staff to maintain a positive work
environment. When analysing employee connections, it was discovered that this time is
viewed as a rising opportunity because it aids businesses in achieving their initial goals and
ambitions.
Nature of employee relations
Employee connections have a very complicated and varied nature. This is so that corporate
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objectives can be met by both employers and employees working together. In addition to
businesses, linked parties like governments and other industries are also included in this
interaction (
Carton et al.,
2022). In the context of TESCO, it can be claimed that it is crucial
for HR managers to concentrate on building connections with management and staff
members in order to enable them to collaborate effectively with the business in the long run.
Theoretical perspectives of employee relations
Marxist, Unitarist, and Pluralist viewpoints are the three categories into which theoretical
approaches to employee relations can be classified. Here are a few that are most important:
Unitarist perspective
: From this vantage point, the relationship between the company's
employees and the company as a whole is one of reciprocal loyalty. This shows how they
collaborated to quickly succeed in their shared objective. Cooperation between employers
and employees is valued. This corporation values its workers and abides by their decisions,
allowing them to understand their significance to the business (
Fredman, 2022). Due to the
low likelihood of employee-employer conflict, trade unions are not required here.
Pluralist perspective:
This viewpoint mostly has to do with two loyalist groups. The
management of the corporation and its trade unions are these departmental groups. They are
routinely observed by the union; employees cannot be pressured or controlled under this
management. To sustain positive employee relations at work in these circumstances,
management must collaborate with both employees and labour unions. By evaluating the
various viewpoints on labour relations discussed above, researcher can conclude that a
multifaceted viewpoint is thought to be the most suitable for a UK company like TESCO
(
Hajiali et al.,
2022). Given that unions monitor and arbitrate disagreements, this viewpoint
has been examined to benefit both management and employees. Trade unions support
employees in preserving their legal rights. On the other hand, employers' unions are assisting
in successfully influencing employers in crisis to collaborate with businesses to defend
against losses.
Figure 2: Theoretical perspectives of employee relations
Source: (
Hajiali et al., 2022)
The roles and responsibilities of major stakeholders
Given that unions monitor and arbitrate disagreements, this viewpoint has been examined to
benefit both management and employees. Trade unions support employees in preserving their
legal rights. On the other hand, employers' unions are assisting in successfully influencing
employers in crisis to collaborate with businesses to defend against losses.
Explanations of all of them are stated as below:
Employer
: they offer chances for negotiation; employers play a crucial role in the
employment relationship. From the perspective of a single employee, unions lessen the issues
that businesses must deal with. This is so because trade unions only advocate for issues that
both employees and employers share (
Hasanah, 2022). Both companies and employees
ultimately benefit from this time savings. It was also mentioned that as employers have the
authority to hire and fire employees, they also have the power to affect relationships with
employees. Employees may also be transferred by management without prior notice. As a
result, unhealthy relationships between them may develop. As a result, it might have an
impact on employee relations. Employers are responsible for approving union or non-union
membership on behalf of employees. The employees are given enough time to take part in all
union activities they are members of when certain firms accept workers from recognized
independent unions. Additionally, employers offer information and resources to authorized
union representatives so they can accompany employees to formal disciplinary, dismissal,
and grievance hearings. The interconnectedness of choices and actions at various levels of
industrial relations systems is acknowledged by strategic choice theory. Future discussions
regarding the necessity of reward and training systems will be driven by strategic decisions to
adopt new technology and policies (
Hassel and Sieker, 2022). This stops employees from
making irrational demands during legal labor disputes. Employers must also ensure that
workers who report instances of misbehaviour under the Public Interest Disclosure Act are
not punished and talk to them about collective dismissals. An employer must consult with the
proper trade union representative before terminating more than 20 employees in 90 days. Government
: Rules, laws, legislation, awards, agreements, etc. are only a few examples of
how a state's or a state's law presents itself in the relationships between workers. It is possible
to say that abrupt changes in governmental law may have an impact on employee relations. In
opposition to TESCO, the government has adopted new overtime restrictions that are in
favour of workers. Given that TESCO's productivity will decline as a direct result of shorter
working hours, this will surely result in a bad working relationship between employers and
employees. As a result, it directly affects how employee relationships are structured. By
creating, passing, and upholding pertinent labour laws, rules, and regulations, governments
and their agencies have an impact on employment relationships. The government and its
agencies establish the legislative framework for employment relationships after consulting
with other significant industrial relations parties (
Jones
et al
., 2022). Trade unions, elected
employees, and employer representatives all have a part to play, but the legal system outlines
the boundaries that apply to employee-employer relations. The role of the state is to
determine the maximum number of hours that employees may work each week and to pay
employers the fair compensation that each employee in a particular position is entitled to.
Governments also have a duty to get involved in the labour relations process, whether
directly or indirectly, when it crosses employment lines. The government is also committed
to judicial settlement of industrial relations disputes, which can result in incomplete, out-of-
date resolutions after certain cases or negotiation outcomes, or working to change policies
that are now recognised to be unnecessary, in order to ensure that workers are adequately
protected from exploitative employers and organizations. Essentially, governments play a
general part in establishing a secure workplace that meets the needs of both employees and
companies. This indicates the government's direct interest in tackling and having an impact
on poverty and crime, and the plan also contributes to maintaining strong employment rates
(
Krummel, 2022). The development of human resources in the public and private sectors is a
major responsibility of the UK government. TESCO, the biggest grocery retailer, makes an
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average contribution to the UK economy. The economy of the nation benefits more from a
workforce that is more proficient and effective. Trade union
: In essence, trade unions serve as a liaison between companies and employees.
They also owe them the capacity to create and shape interpersonal bonds. Employees' faith in
the company may be diminished by the TESCO union, which could encourage them to
participate in managerial decisions that have an impact on their work activities. Company
relationship with employer will subsequently deteriorate, which will undoubtedly have an
impact on relationship with employees. Trade unions advocate the grievances of specific
members and hold disciplinary proceedings (
Lunde et al
., 2022). Additionally, unions offer
members financial and legal benefits and help pursue a variety of claims in labour courts. The
majorities of trade unions are politically powerful and can advocate for employees during
talks with governments and businesses. Trade unions speak for millions of workers, providing
a clear and cogent argument for all workers against other interest groups, saving businesses
time and money. When negotiating work schedules, pay, and benefits with employers, trade
union officials look out for the interests of the employees. The fundamental rights of workers
to obtain medical attention and to be shielded from workplace accidents and injuries are also
something that trade unions must uphold. Essentially, unions help employers determine and
meet their legal commitments to their employees.
Figure 3: Major Stakeholders
Source: (
Lunde et al., 2022)
Different strategies and interventions that can be employed to manage employee
relations and influence stakeholder behaviour
In order to ensure that these resources are appropriately managed with the explicit end aim of
raising overall club profitability, staff connections are crucial to the overall growth and
success of the club is significant (
Malik, 2022). Exercises in employee relations are a vital
aspect of work and a corporate need. Tesco spends a lot of money on recruiting top talent and
boosting productivity. It is quite challenging for clubs to remain functioning without solid
employee relations practices within the organization. Organizations can use a variety of
strategies to improve employee connections with their employer and senior management.
Team environment
In order to ensure that these resources are appropriately managed with the explicit end aim of
raising overall club profitability, staff connections are crucial to the overall growth and
success of the club. is significant. Exercises in employee relations are a vital aspect of work
and a corporate need. Tesco spends a lot of money on recruiting top talent and boosting
productivity. It is quite challenging for clubs to remain functioning without solid employee
relations practises within the organization (
Mohanty, 2022). Organizations can use a variety
of strategies to improve employee connections with their employer and senior management.
Rewarding the employees
This acts as the main remedy for declining productivity and is another strategy for enhancing
employment. Employers should show their appreciation for the efforts of their staff by
providing quantitative or qualitative rewards. As a result, connections with management and
employers get better, and employee motivation rises (
Mulang, 2022). Since TESCO is
required to review employee performance on a regular basis, it must reward its staff by
advancing and giving internal combustion engines. In the end, performance will be enhanced.
Effectiveness of stakeholder management in shaping the employment relationship and
influencing employee behaviour in Tesco
Stakeholders are essentially divisions with an interest in the firm and who make direct or
indirect investments in its continuous operations. They play a significant role in enhancing
the organization's performance and helping it to expand in general. Customers, local
governments, and communities are TESCO's key stakeholders. Stakeholders can be divided
into two categories: internal and external. Employees, managers, and directors are internal
stakeholders for TESCO, whereas consumers, rivals, and the government are external
stakeholders. According to a statistic from 2019, TESCO employs about 450,000 coworkers
worldwide (
Nevická and Ladiverová, 2022). The Chairman is a member of the Board of
Directors. BlackRock, Norges Bank, and other shareholders make up the majority of the
stock and are crucial to the business. With one million clients served each week, TESCO is
well-known among third parties for its sizable customer base. ASDA and Sainsbury are
Tesco's primary rivals both domestically and internationally. TESCO is also among the most
well-known businesses, working with thousands of suppliers and manufacturers. This
provider helps prevent food waste while giving the business the supplies it requires.
Additionally, the majority of external stakeholders are local communities. TESCO is
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renowned for providing local residents with entertainment. More than 1,000 individuals are
hired from the neighborhood and the city each year, which helps to increase the employment
rate.
Figure 4: Stakeholder management
Source: (
Nevická and Ladiverová, 2022)
The most vital connection between workers and management is formed through these
stakeholders. These are essential to the smooth operation of the business and the upkeep of
positive employee relations. The Board of Directors and Chairman, among other internal
stakeholders, are involved in determining the overall strategic direction of TESCO (
Purcell
and Brook, 2022). They internally carry out the strategies they specify. Setting a good
example for staff improves the working relationship inside organisation and boosts worker
productivity. The management of the organisation is also in charge of regularly inspiring
employees and reviewing employee performance. Effective managers can inspire their staff
to be more productive by maintaining constant communication with them. In the end, this
strengthens the bond between employees and managers. Additionally, the government is
TESCO's major shareholder, which indirectly helps to increase employment. Different rules
and regulations that help employees may be passed by local governments. A regulation that
limits an employee's workday from eight to seven hours, for instance, will ultimately increase
productivity and help the business succeed. The improved efficiency enhances ties with
various hierarchy levels by enhancing communication between them. Additionally, it fosters
better working connections with suppliers. By sharing information about consumer needs and
expectations for the product or firm, suppliers assist us in maintaining accurate inventories. In
a timely manner, respond to staff inquiries about these various aspects (
Salathiyan and Sunny,
2022). As a result, employees frequently discuss it with their bosses, and improved
communication promotes employer relationships. Effective communication, trust, an ethical
approach, and dispute resolution are essential components of healthy employee relationships.
The interests and viewpoints of stakeholders are significantly impacted by this fruitful
collaboration. Employee productivity and commitment to accomplishing organisational goals
increase when there is harmony between the employee and the company (
Utama et al.,
2022).
Investing in businesses that offer a good return on investment is in the best interests of
shareholders, and maintaining shareholder accountability is in the best interests of the
chairman and board of directors. As a result, healthy connections boost staff productivity and
TESCO's bottom line. A high return on investment is given to shareholders via rising sales
and profits. As more and more investors wish to join the company, this will benefit both
shareholders and the board.
Recommendations to improve employment relations
An organisation should support employees by offering them efficient and efficient services,
according to the discussion of the employee relationship, its nature, theories, and the role of
stakeholders in changing the nature of the employee relationship that was just completed. It
seems that everyone concurs that the main priority should be employee satisfaction. Create a
welcoming atmosphere. Employees that are happy with their jobs are more likely to work
hard for the business to meet its goals and objectives (
v Brierley, 2022). As a result, business
expansion is quicker. In light of the overall situation, TESCO's HR managers might take a
few steps to strengthen their interactions with workers in order to boost the market
performance of the business. The following are some of the main suggestions for enhancing
employee relations:
To begin with, TESCO HR managers should involve their staff members in the
decision-making process to help them realise how important they are to the business
and how valuable their input is. Additionally, it aids TESCO in obtaining better
suggestions from staff, which is advantageous to the business in terms of boosting
earnings. Additionally, it enhances worker relations.
After that, recommend to the HR manager at TESCO that an internal brainstorming
session be held so that staff members can assess the internal talents they are acquiring.
Employees and management both gain from these sessions, fostering a closer working
relationship.
HR managers are also urged to give assignments to members of their teams so that
they can work with them more effectively. The interaction between employees and
employers deepens their relationship. As a result, the dedication of this HR manager
will certainly result in improved employee relations.
Based on the aforementioned suggestions, it can be concluded that by adopting this strategy,
TESCO's HR managers will be able to more easily strengthen employee relations inside the
organisation, which will result in improved business performance and higher profitability(
Xu,
2023).
Conclusion
Employee connections are, in essence, interactions between staff members and management
that support the accomplishment of organisational objectives. Worker relations are
significantly impacted by collective action by trade unions and the collective voice of
workers against bosses. However, as individual behaviour increases and has a greater impact
on how employees and employers interact, patterns are fundamentally shifting. Theoretically,
employment connections are based on broad principles of explanation and comprehension
that provide light on particular events in various management contexts. Effective employee
relations also aid organizations in forging bonds with their staff members and retaining them
over the long run. HR managers may easily inspire and persuade workers to perform
productively for the firm with the correct hiring pledges.
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