B866 Employment relations and Employee Engagement

Introduction:

The paper talks about the hoe cooperation between employers and employees lead to the development of good working relations against changing the background by analyzing the most up-to-date employment legislation.  It explains that how employee involvement techniques affect human resource management within the organization. It describes the unitary and pluralistic frames of references and role of a trade union in employee relations. It also explains the key features of employee relations and role of negotiation in the organization. There is also a comparison shown between the methods of gaining employee participation and involvement in the decision making process in the organization. The significance of the employee is talked in the paper. The report shows a description of how an organization solves its problem in the various conflicting situation that it generally faces. Further, it explains the significance of compensation and reward system in the organization to increase the productivity and performance of the employees.

Tesco company has been selected for the report. It is a British multinational retailer and grocery merchandise. It is founded in 1919 with headquarter is located in Welwyn Garden city, England United Kingdom. It is the third biggest company in the world measured and evaluated by profits and ninth largest corporation measured by the revenue in the world. It has grocery stores in more than 12 countries across Europe and Asia. It is the market leader in the United Kingdom, Thailand, Hungary, and Ireland. It is the public limited company and there are around 476,000 employees are employed in the world (Mishra, Boynton, and Mishra, 2014).In today’s era, the company is expanding its business and revenue day by day.

1.1 Unitary and pluralistic frames of reference

These are certainly the two approaches found in the functioning of the organization. Through references of Unitary and pluralistic frames, every individual has the capability of analyzing the approach of employee relation. According to the approach of unitary, it is necessary for the employees of the organization to work on the objectives, to meet the set goals and to manage the values present in the organization in order to gain long-term mission and vision of the firm. In this way, Tesco can achieve goals and objectives effectively and efficiently. The mission statements of the organization guide the employees to work according to the demands of the company. The unitary approach is the very important approach of the organization. it helps in promoting the culture of the team in the organization and it ensures on having good relations with the employees who are working in the organization (Welch, 2012).

The pluralistic approach helps in supporting the fact that there are many different employees who have different values and work with different perspectives. The approach is considered as an important method that should be followed in the organization. It helps in resolving conflicting situations that prevail in the organization.

The frames of unitary and pluralistic approaches can be taken into consideration with reference for guiding organizational employees in the organization who live in wrong belief thinking about the perception relating to the relationships among other employees. These frames have helped the managers in managing the interest of those people who have the parallel interest with interest of the organization. For example in the unitary frame of reference, there is a lesser chance of having conflicts as the managers of frames of reference could be easily able to identify the areas where conflict arises which will help them in keeping control over it and avoiding the further conflicts (Hom, Mitchell, Lee and Griffeth, 2012).

1.2 Influence of Trade Unions in Employee Relationships

The Employee relationships in Tesco have a direct relationship with Trade Unions. The relationship is seen as the two key factors of institutions with respect to the industrial relationships which are a trade union and the state.  The role of a trade union is to represent the relationship of a single employee among the group of workers. The role of the union is measured in terms of scope and density. Unions put efforts in engaging with the employees in order to teach them the proper way of organizing and following the demands set by them in order to achieve the set targets and goals. They generally take part in the process of collective bargaining by engaging with the employers of the organization. Their engagement also takes place in the state in demand while dealing with legislation. The state is generally seen having a large influence on the relationship of employees with the help of minimum wages, working hours and other different issues (Holst, 2014).

The employees of Tesco in employment relationship establishes a relationship with the help of contacts provided to them to work on that are governed by the code of labors. Employees are dependent entities. They depend on the employer while working at a position. This is because they are mandated to show their presence at the specified place and allotted time where they have to work for longer hours and they are expected to show good performance.

According to the European Foundation for the Improvement of Living and Working Conditions, the aspect of dual regulation of the relationship has shown impact over the institutions and it is affected the labor functioning and collective bargaining. The association right is given permitted universally to career civil servants and employees working on contracts without the help of employees who work in private sector (Dibben and Williams, 2012).

1.3 Main players in employee relation

There are different people in the organization who are responsible for maintaining a good relationship with the organization. Their role is to ensure whether people working in the organization are polite and humble towards other employees. The main players who work for the Tesco Group’s benefit are the managers, the employees working in the organization and the organization itself. Their contribution to the organization relates to good or bad relations with the employees (Budhwar and Debrah, 2013).

For example, if the issues relating to discipline in the organization and the employee uses an illegal action which does not fall under the norms of the organization. Thus, employees face many difficulties within the organization. It is advised not to use an illegal approach which can harm the functioning of the organization. There are various issues faced by the employees.They indulged in the wrong practice which they should not have done. An employee of the organization is not expected to follow any illegal action in any condition. This will not only harm his reputation in the organization but will also become troublesome for other employees as well. This may also create conflicting situation among other members also. The issue will be raised in front of the manager and will get into the ears of the market which will harm the company’s growth. The manager will be expected to take suitable action that can solve the problem within time and also according to what mentioned in the contract of the organization. The role of the manager is to provide a better solution to solve the problem arises in the company and being aware that the problem should not arise again (Heyes, 2013).

The organization plays a very important role in employee relations. The organization is that entity which makes the rules and norms which are seen following in the organization by its members.There are various rules are governed by the company to maintain a good relationship with employees. Thus, it is the responsibility of the people to follow the actions and rules of the organization. All the players who play in employee relation are responsible for coordinating in the employee relation so as to make a good relationship in the organization.

Having friends at the workplace enables an employee to work comfortably in the environment and it can help in any task in which employee faces the problem. The friend has to be trustworthy and helpful towards the work. This makes them an important tool in the employment relationship. A friend can make the employee feel motivated and interested towards the work in the office. This will make them work effectively and will avoid absenteeism from the office. Hence having a friendly environment in the organization can be helpful for the employees of the organization and friends can play a major role in employee relation (Hearn, Bridgstock, Goldsmith and Rodgers, 2014).

2.1 Procedures an organization should follow 

The one thing that makes the firm is rules and procedures. People are the biggest entity who makes the rules for the organization. The rules made by them helps in defining the type of culture that should be followed in the firm. The culture of the company is based on the type of environment.  No rules in the company can lead to ill behavior among employees, it might lead to total chaos and one cannot feel a proper environment to work in the organization. Such behavior might lead in generating lesser outputs and less fame in the market. Hence, it becomes important for an organization to set certain parameters in the organization so that there could maintain proper decorum in the environment. The reasons to follow the organizational rules are in Tesco are such as (Meyer, Stanley and Parfyonova, 2012):

Rules complete a company:

Rules of the company make the employees work as a team in an organization. It binds them all in one batch where they feel comfortable in doing the assigned work effectively and efficiently. Rules allow them to serve the company as per the demands of the business by working in the discipline. If a company is without rules there would have been no proper system of working and it will only create problems and difficulties in the business environment. So rules and regulations are becoming important a functions of the firm. It is important source to meet the long-term goals and objectives within the organization.

Rules create discipline in the company:

The discipline of the company depends on how an employee of the organization behaves. If the company follows proper disciplinary actions it can achieve its goal in less time. To keep discipline in the company it is necessary to follow the rules and procedures that come under the norms of the company. Each and every employee is asked to work under those norms which create discipline in the environment (Mowday, Porter and Steers, 2013).

Rules promote cooperating environment:

Rules are the backbone of the company. Without rules, it would become difficult for the company to function. The employees of the organization look for a corporate and healthy environment where they can work comfortably which is only possible if it has rules that could promote the cooperative environment. The company works with the authoritative rules for its growth. If there will be no rules there would be no cooperating environment. So the employees should promote such environment in the company and it becomes important to follow the rules and procedures

Rules ensure working for a common goal:

Tesco works to achieve a common goal that is set by the company itself. All the members of the company aimed at working for the same target.The main objective of the firm to achieve best outcomes and results. Therefore, rules ensure that each and every employee work for the common goal of the organization. It helps them in setting a common objective that employee has to achieve while working for the company. Each employee is assigned with the different task but the goals remain the same. They work for common objective no matter how differently they function on the different tasks (Nielsen, 2013).

2.2 Key features of employee relations in a selected conflict situation

There are many features because of which conflicts can arise. The conflicting situation arises depending upon the type of conflict seen in the organization. Taking an example of conflict in employee relation:

The conflict can arise in the situation where there are some employees who work a lot and some who work comparatively lesser. Some are very active in their tasks while the few amongst them does not feel so. In this case, the conflict may arise stating the cultural differences in the business while working with other employees. In other words, conflict can be seen in relation to doing more task than the others. This conflict can have various effects in the business, for example, it can harm the cultural difference of the business, it can lead to misunderstanding in the company among the employees, etc. This might reduce the performance of the employees who work in the organization and can lead to improper treatment among the employees. To solve such conflicting situation managers are responsible in making the policies that can help them solve such problematic environment. The managers are responsible for finding proper solutions that can resolve the problem within the time. It is also necessary to fulfill the employee’s needs and requirements. Then the rules play an important role in setting the business without conflicts and disputes. When the problem of cultural differences takes place there should be rules that can govern the employees towards harmony (Gelens, Dries, Hofmans and Pepermans, 2013).

2.3 Effectiveness of procedures used in a selected conflict situation

One must always follow the right procedure in solving the conflicting situation. To resolve the problem it is important to be fully aware of the conflicting source so that it becomes easy to come out of the conflict.

There should be a proper understanding of what lead to conflict in the situation by the managers so that they can easily solve the problem that prevails in the organization. The managers must know about the conflict between the cultural difference in such a way that they are able to make others understand the changes that need to be done in the organization. The manager is expected to go into the depths of the problem which lead to conflict. By understanding all such things one can easily identify the best way to deal with the problem and solve it. They can negotiate with the employees by asking them for changing their habitual relation with employees and they work with and the other employees as well. Thus, everyone should respect other’s culture and should promise to work with honesty to avoid such conflicts (Donaghey, Cullinane, Dundon and Wilkinson, 2011).

3.1 Role of negotiation in collective bargaining in Tesco

Negotiation refers to an agreement which includes employer and employee within the organization. This is generally done when workers are not seen to be happy with the amount paid to them for their work or the kind of condition they work in the organization. The practice of negotiation and bargaining in Tesco works between the members of UNISON i.e. its representative and its employers. This helps the company to form equality in the workplace. To reach an agreement is mainly the aim of this practice of negotiation. It does not mean consulting with respect to the changing opinions of the workers and the employers of that organization. The negotiators deliberately turn the consultation in negotiation. However, collective bargaining is considered important in industrial relations. It makes the employees and employer's relationship effective to do work in an organization. Employers and employees of the company who give their contribution in company’s success generally have a strong bond that helps them to work in a conflict-free company. The communication that takes place between the people working in the management and the employees of that same management in order to reach an agreement this could be turn out to be a result of collective bargaining. Collective bargaining is not the process in which members of union talk about the benefits of the employers rather the process of reaching to the conclusion by recording the wages of the employees, the time they should take in completing the task assigned and the kind of conditions they work in the organization(Forsyth, 2011).

The role of negotiation in collective bargaining can have many other effects. It depends on the company’s size and nature. It is generally seen that small industries hire consultants in order to negotiate with employees whereas in the large industries such jobs are handled by the managers. The negotiation takes place in the company only when there is unity. If they have unity there are chances for selecting any one representative from the company itself or they can hire a consultant for practicing negotiation with the employers (King, 2013).

3.2 Impact of negotiation strategy for a given situation

With relation to collective bargaining, the policy of Tesco Company states that in order to have a good faith it is must for the company to bargain on the conditions of employment. A good framework is hence provided by the policy corporation for maintaining such rights. In collective bargaining, Tesco’s fundamental rights are seen as the commitments. Tesco expects its employees and employers to respect the rights given to them by the company that represents their collective interest. Tesco aims at managing freedom of association and collective bargaining which gives an impact on the negotiation of the company. The policy that Tesco strongly believes in is treating all of its employees fairly and equally. The company faces the challenges when the implementation is seen in the conflicting situation faced by the company. The impact of such conflicts is seen at a global level. It can either harm or upgrade the company’s growth and such conflicting situation can give rise to various other controversies in the market. Hence the impact of the negotiation strategies could be seen majorly on the employee relation.

4.1 Influence of EU on industrial democracy in the UK

The influence of EU on industrial democracy has shown many changes in the working of the organization. The relationship of the industry at EU level depicts the various qualities of a member of states. For example, representation of employees stands on the labor laws of trade unions and worker’s representation of state membership employee. This works according to the workplace. Promotion of a group of employees represents how employment in the business takes place and how EU showcases its industrial relations. The collective industrial relations present in EU system are transnational. However, the presence of member state is very crucial in the company that has a transnational system. An EU system of collective industrial relations in the UK is seen engaging in the industrial relationship between both levels, transnational and national levels. At EU level company considers adapting mutual relations with the other companies and also in the national system of the same relationship. The strategy adopted by EU enables its representatives of two-sided industry, its employers, and its trade unions to give its active participation in regulating EU labor (Bengtsson, 2013).

 In the UK, say about 1919 and 1979 the civil servants were seen being encouraged for joining a trade union as being in the tradition of a model employer. It was a recommendation that it was removed from Civil Service Handbook in 1984. It came under the conservative government of Margaret Thatcher, but then it was reintroduced by the new labor government in 1997. The various modifications, the different changes, and developments could be seen in the country. However, between the member-states of the EU, they considered the changes for the common people who work hard, the trade unions, the laborers and employees of the organization. In the UK, there is advance conciliation, arbitration and a system where people can inquire. It is not stopped to form trade unions (Bach and Bordogna, 2013).

4.2 Methods/Ways of Participation of Employees in Decision-Making

Worker’s participation in the process of decision making results in successfully creating values in many of the organization. The matter of debate remains whether an employee should show its participation in decision making to some extent. According to some people of including the union of workers must give their participation in the management as equal as the partners who are restricted or bounded in doing so. The participation of employees in the organization is limited. There are many ways by which participation of employees in decision-making process could be seen, which are as follows:

Participation at the Board Level: 

The kind of representation the employees give at the board level is termed as an industrial democracy. This is an important role played in the decision-making process. The idea is to protect the employee’s interest in the organization. The representatives who participate in the employee relation are expected to share the relating issues and the kind of problems they face with the management. They work on guiding the board members in investing in schemes which result in benefiting the employees (Jain, 2015).

Participation through Ownership:

The other way in making the employees participate in the decision-making process of organization is by giving them the authority of holding shares of the company, in general, making them the shareholders. They should be allowed to buy and share the equity shares, taking the required loans or assisting financially (Carmona-Moreno, Céspedes-Lorente, and Martinez-del-Rio, 2012). 

Participation through Collective Bargaining:

This means workers can participate through the collective agreements by following and making certain rules. This is treated as the professional way of showing participation in the process of management.

Participation through Complete Control:

In such type of management, the workers work in unity and they themselves act as management. They get elected and gradually show their controlling attitude towards the organization. They give their participation in the process of decision making by dealing with all managerial aspects (Khodaparasti, Absalan, and Khodavandegar, 2013).

4.3 Impact of HRM on employee relations

The main goal of human resource management is of increasing the organizational performance. However, the multidimensional characteristic of the organization’s performance is addressed explicitly and it has also linked human resource practices with the other different dimensions (Munap, Badrillah, and Rahman, 2013). HRM is the backbone of the to attract more candidate in the market.

The performance of the employee is affected by a number of human resource practices and the effect of those practices is seen on the employees. HR manager hires the employees and provides them training in order to function smoothly. As a result,  the company is achieving long-term goals and objectives of the firm (Alfes et al, 2013).

They have to go through a proper planning process while choosing the kind of training they should provide to its employees that should have a proper code of conduct, what type of objective the employee should follow, also to think about the results that will be seen in future, etc. An organization has every type of workers in the organization (Bal, Kooij and De Jong, 2013). But the skilled workers are the one who is considered to be working smoothly while organizational functioning. Human Resource Management manages the job training procedure for the employees that prevail within the workplace and also outside the workplace. HRM plays a very important role in the functioning of the organization. It shows a great impact on the employees who are working in the organization. They are responsible for solving whatever problem they have that relates to the organization, they are responsible for recording the entry of each and every employee with their complete information, they are responsible for keeping a check on the working of the employees and also they are responsible for their payments and incentives. Hence it becomes difficult for them because of the responsibility of managing everything in the organization effectively (Armstrong and Taylor, 2014).

Employee Participation

The process of showing employee participation in the management either directly or indirectly by involving the decision-making process than just following the orders or commands of the authorities is employee participation. The employee has to give their participation which includes their way of thinking, a way of dealing with problems and the way of managing things, etc. Their participation makes the overall development of the organization and the quality of work depends upon the quality of experience they have in doing the work. It is important for an organization to show their participation in order to achieve good results and greater prospects in future. The company hires the best employees for making decisions for the business as it is necessary to earn profits and that could only be done by having employee’s participation (ALDamoe, Yazam, and Ahmid, 2012).

Compensation

Compensation is the sum amount that the company pays to its workers for the kind of contribution they give to the organization. Paying the employees and providing them with compensative amount is the main reason that keeps the employee intact with the organization. This not only interests the employee but also provide with greater benefits to the firm.  The sound production system of the organization depends largely on the sound payment system. The worker only provides more efforts if the company is able to satisfy all its demands and all the moral decisions. Compensation that is provided by the company can be in relation to finance or non- finance methods. The aim of compensating the employees is to make them happy so that there should be a proper growth in company’s business (Karpagambigai and PoornimaRani, 2017). In this way, the company can easily reach its long-term targets around the world.

Conclusion:

On the above discussion, it has been concluded that employee relations play a vital role in company to maximize the revenue and profit in the world. Employee relations is the major element of the organization. Along with this compensation and rewards system is an important function of human resource management to motivate the employees for doing work effectively and efficiently. The impact that the human resource management puts on the employment relationship is something that benefits in the development of employees. The influence of EU seen in the UK is generally accepted by the country. The report shows that it is important to have employee relation in the organization. The relationship between the employer and the employee is made clear and effective. The company cannot survive its business without manpower so it should protect the rights and morale of the employees. It should provide incentive, bonus and other benefits to the employees.  The success and growth of the Tesco depend on the employee peaceful relations.

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