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The term employee relation refers to maintaining strong and effective terms with the human resources so as to retain them for long run. It is saying that if individuals are financially invested they demand something in return while if they are emotionally invested they wish to add worth to business (Gupta and Kumar, 2012.). Therefore, it can be stated that employee relation is to assure human resources contribute maximum towards the organization. With the help of employee relation aspect the company can avoid the possible conflicts and industrial disputes. Thereafter, to retain employees in long run and reduce the turnover ratio maintaining strong employee relation is must. It further involve effective communication between management and employees to facilitate decision making, resolution of issues, solution to grievances etc. In this report, various aspects of employee relation will be studied in the context of Tesco Plc.
It is a British multinational grocery and general commodity retailer. Tesco was founded in 1919 and headquartered in Welwyn Garden City. At present company is dealing in more than 12 nations across Asia and Europe. According to the calculation of profits, Tesco is regarded as third largest retailer in the world. In this report, learning will be shown regarding unitary and pluralistic frames of references. The role of negotiation in collective bargaining will be explained. Thereafter the impact of the EU on industrial democracy in the UK will be explained. Thereafter, learning will be shown regarding the impact of human resource management on employee relations.
The unitary frame of reference can be defined as one where company perceived as an unified concept with all the members sharing mutually defined aims and objective. Due to one goals the efforts are directed in particular direction only. There is one acknowledged leader, which help in directing the efforts in specific direction and all the members works for one common objective of the entity (Atkinson and Hall, 2011). This further help in avoiding confusion and duplication of efforts. It is supported on the orientation that despite of multitude having contrasting roles and prospect they should share common aims and purpose.
On the other side, the pluralistic frame of reference is the orientation where company is reasoned to be built up of compelling and contrasting sub-groups. The different teams working in the company has there own purpose and interests. These sub-groups are competitive as well as have their own leaders and objectives (D'Cruz and Noronha, 2011). Trade unions play a important and influential role in pluralistic frame of references. They are more concerned on power and coordination rather that enforcing and controlling. Conflicts are not considered as negative always and must be handled jointly because if managed effectively they can result into positive change.
The Tesco PLC can use unitary frame of references so as to maintain strong employee relations. This will help in attaining the defined objectives with joint efforts of all the members. It will also foster team work, attainment of shared goal and increase in mutual cooperation (Suliman, and Al Kathairi, 2012).
The trade union are the organized group of workers in a trade, group of business or professions that are developed to safeguard the rights and interest of organizational members. It can also be regarded as entity whose membership consist of manpower and union leaders, joint to safeguard and encourage their shared purpose (Luo, Wieseke and Homburg, 2012). It further play vital role by bargaining with employers regarding working conditions, remuneration etc. They further help in managing relationship among employees and the employer so as to maintain interest of both the parties and avoid state of conflict. Trade unions help in meeting the different needs of workers and help in solving their grievances on time (Biswas and Varma, 2011.). There has been significant change in the working of trade union over the period of time. Initially in between the 18th century, the trade union was controlled by Moderate new model union. The legalization of trade union is evidence from the y ear 1824. the key purpose of the people behind joining the trade union was to get proper wages and salary for the work done by it. Therefore, trade unions got more dominant position by 1871 by the formation of trade commission (Clarke, 2011). Hence, in the y ear 1980-1990 the British trade union has suffered many challenges and modification as t here was intense level of unemployment, the dominance of employers I n private company , private contractors etc. It was identified that there were around 1.3 job less Individuals and due to this the trade union membership started declining. By the year 1990-2000, the decrease in the membership of Transport and General Workers Union also decreased from 2085000 to 858000 from period 1979-2000. therefore, the female started working and resulted into demand more jobs. From t he year 2005-2015, trade unions became essential part of the corporates. The government also supported trade unions by developing various laws (Rolfsen and Langeland, 2012).
The effective development of employee relation is extremely important for the success of company. There are many players that are responsible for developing effective employee relations. Description of which is as follows:
Conflicts can be defined as an argument or disagreement of the two parties on a topic. However, it may be created anywhere in the families, friends and among the employees. In the companies conflict are so common as it can be positive or negative. However, this can arise between the employer and the employee (Poor, Karoliny, Alas and Kirilova Vatchkova., 2011). At TESCO, there are certain reasons due to which conflicts are raised. They are stated below.
In addition to above, there are some more conflicts that are defined below.
Salary/pay: This the major conflict which is being raised between the employer and the employee. The employees of TESCO are working for years at same salary which has resulted in decreased motivation. This has resulted in affecting the work quality of the subordinates of the stated organization (Larson, 2015).
Unequal employee opportunity: This is another issue which has become a rescan of conflict. It is seen that, employees with same qualification are still not getting equal promotional opportunities. If the organization provides equal promotional opportunities to the employees then it will help them to attain the organizational goals.
Dealing with different conflict situations: Dispute handling methods can be adopted by the top authorises of TESCO in order to resolve the conflicting situations. However, the management can remove disputes from the root cause by effectively development of the positive opinions. Here, the organization can also involves employee participation in the final decision making process. It will result into increasing the motivation level of the employees (Tsirikas, Katsaros and Nicolaidis, 2012 ). This will directly help the organization to attain its goals and objectives in an appropriate manner. Solving the conflict will result in improving the current position of the organization and the employees as well. Collective bargaining is another method through which a conflicting situation can be resolved.
In Tesco PLC, the reason of increase conflicts between the employees is high dissatisfaction level towards management. In this context, it becomes important for the higher authority to look towards this issue very seriously (Crespo, Sallis and et.al., 2011). From the assessment, it has determined that issue has related of low wages rate given by Tesco PLC to its personnel. Due to this, many of the staffs have left the organization and it has created a negative image in the marketplace. There is a need of find the solution of the problem so that the increase dissatisfaction level in the employees can be minimized in a right manner. In this context, some reason of arising of conflicts are stating below (Demerouti, Cropanzano, Bakker and Leiter, 2010).
Dissatisfaction level of subordinates: This thing has affected the brand image in customers’ minds and recent join employees. To solve the following problem, the management of Tesco has to find some unique solution of this problem (Dhanesh, 2014). For this, company should increase the interaction with the staff members so that major reason of conflicts can be easily determined. Management have to increase the wages rate of personnel so that they can motivate in the right direction.
By taking into the consideration of above, it has determined that alary is the major issue of Tesco PLC. In order to overcome the following issue, top management has to adopt the concept of collective bargaining concept. This has assisted the company to deal with this issue in right manner (Gao, Janssen and Shi, 2011). Under this, top management will determine the impact of conflicts on various operational activities. With the help of this, Tesco PLC will negotiate to resolve the following problem so that dissatisfaction level of the employees can be reduced at the significant level.
The process remained effective of the management and staff members of Tesco PLC. But with the time, company has to needed to take some other steps to resolve the issues in more effective manner. This will help in determine the other reasons of dissatisfaction level of employees. With the help of this, new solutions can be effectively implemented in the favour of the staff members (Hu, Yang and Islam, 2010). The positive aspect of this is the management of Tesco PLC has able to deal with the situations in the right manner. Along with this, unique methods have helped to improve the satisfaction of the staff members. Further, the top management has to consider the needs and requirements of personnel to solve their issues.
Collective bargaining is termed as an effective approach in which then representative of employees and employers collaboratively meet together and engage in the mutual discussion so that they can easily attain the objectives and goals of the organization. This approach is considered as win-win situation that benefit both the parties in meeting their objectives in effective manner (Kalemci Tuzun and Arzu Kalemci, 2012).
The negotiation is termed as the process that plays significant role within the collective bargaining in which representatives of both the parties mutually discuss on the statement so that they can easily come up with the actions that are mutually agrees by both the parties (Landry, Panaccio and Vandenberghe, 2010). Within this process trade union raises their voices against the senior level personnel for the benefit the interest of employees. The key role of negotiation in the collective bargaining process is that it benefit the Tesco employer in gaining the viewpoint of the staff and employees that assists them in designing and framing the strategies that would be significant for both organization and employees (Maurer and Chapman, 2013). Another role of negotiation in collective bargaining include that support the senior level personnel and staff to render services collaboratively so that they can easily deliver the grocery products and items to the ultimate customers. Another role of negotiation includes that union and senior level personnel resolve the key issues and problem with the help of engaging in the negotiation process within the Tesco (Men, 2011). Along with this, role of negotiation also benefit the organization in meeting the requirement and objectives of the employees so that they may feel satisfy within the organization and they may also get committed towards the activities of organization.
In the business firms there are two entities that think opposite to each other. These two groups are management and employees. It has been observed that thinking of management and employees always remain in different directions. Due to this reason conflict comes in existence between the management and employees. Often such kind of think hamper production at the workplace (Maurer and Chapman, 2013). This ultimately led to reduction in the production and revenue of the business firms. Often negotiation strategy is prepared by the business firms to handle such kind of situations. By using negotiation strategy problem that exist between both entities is eliminated to great extent. There are many types of negotiation strategy that can be prepared by the business firm. However, each sort of negotiation strategy cannot be prepared and used by the business firm. This is because bargaining power of the entities that are in conflict with each other is totally different. Hence, specific negotiation strategy cannot be used in all business conditions. While selecting any strategy for negotiation number of factors must be considered by the managers. The extent to which interest of the employees are affected by the firm decisions must be measured. Their bargaining power must also be measured by the business firm. In this way managers can prepare sound negotiation strategy for the business firm (Demerouti, Cropanzano, Bakker and Leiter, 2010)..
EU is one of critical aspect because it provides a sustainable opportunities so that goals and objectives can be developed in appropriate manner. It has been noticed that industrial democracy is considered as one of critical aspect so that goals and objectives can be developed in appropriate manner. Industrial democracy can be termed as engagement of employers and workers for taking of the wide range of decision, sharing the power along with responsibility among the employers and employees. It has been noticed that any kind of changes in the policies of EU then it will impact the overall working of Tesco PLC. It is because the management working is directly linked with the EU policies (Kalemci Tuzun and Arzu Kalemci, 2012).. For example, the EU has decided to limit the investment in foreign nation to promote the local economic aspects. It means management of Tesco need to make sure that management is well focused towards policies and changes in overall working. If company does not focus on the policies then legal issues might be occurred. It might impact the overall outcome and lead business to critical issues.
EU policies provide a fair trade activities so that business firm can have impressive level of success. The positive outcome that a business firm can attain through consideration of EU policies is that improvement in work culture. Ethical working aspects can be promotes in appropriate manner so that goals and objectives can be accomplished effectively. In addition to this, it can be said that better relationship with diverse suppliers can be improved so that business can have sustainable development. Work allocation aspects can also be improved through application of EU policies within work culture (Landry, Panaccio and Vandenberghe, 2010).
Employee participation is referred as one of most critical aspect that leads business firm to impressive level of success. It has been noticed that management of Tesco PLC must consider employee participation as critical aspect so that goals and objectives can be accomplished in desired manner. It has been noticed that approach of consultancy is considered as one of critical aspect so that sustainable opportunities can be attained in appropriate manner. By having improved focus on the employee participation the decision making process effectiveness can also be well maintained in desired manner. Consultation can be acquired in the form of delivering the opinion of worker during various management decision (Biswas and Varma, 2011). However, it is not essential that every employee of organization provides an appropriate suggestion in order to overcome issue. It means the strict norms also need to be framed in order to make sure that appropriate participation is being taken into account from both side, management and employees. Communication on regular basis also a critical aspect that allows to have effective development of employee relation. In regard to this, it can be said that regular basis interaction allows to understand the key issues which are being faced by management. With an assistance of this, issues can be discussed effectively so that new strategies can be framed in appropriate manner for sustainable development (Crespo, Sallis and et.al., 2011).
Along with this, feedback can also be taken into account so that effectiveness of decision making process can be evaluated in desired manner. It has been noticed that strategies implemented can be analysed effectively through taking feedback. On the basis of feedback provided by the employees the changes can be made so that issues can be overcome. It will also promote the employee involvement in decision making process and assist in meeting key goals and objectives. Moreover, negotiation and collective bargaining are also key methods that can be adopted by business entity like Tesco PLC in order to meet sustainable outcomes and lead business firm to impressive level of success (Kalemci Tuzun and Arzu Kalemci, 2012). .
As per the detailed study, it can be said that overall working of business firm is greatly dependent over employee relation and HRM. However, any kind of changes in human resource management will have great impact in the state of employee relation which might affect the overall outcome. In addition to this, it can be said that Tesco must ensure that behavioural values are being considered in appropriate manner for sustainable development (Tsirikas, Katsaros and Nicolaidis, 2012 ). If discrimination policies of HRM are not well structured then it will impact the overall morale in negative manner. Along with this, it also enhances the trust level among employees and management which might affect the overall work performance in diverse manner. Human resource practices of company influence satisfaction level of employees with the help salary and incentives plan that are greatly affecting employee relations. It means if salary act is not well structured then employees will face issue which might affect the overall outcome. In order to maintain the effective employee relationship the business firm must focus on designing of HR strategies that allows to make sure that goals and objectives can be accomplished effectively. Trade union standards also need to be taken into account so that issues in respect to employability can be overcome effectively. It allows to have direct communication and improve the overall process in context to employee relation (D'Cruz and Noronha, 2011).
As per the above study, it can be concluded that employee relation plays a critical role in the business firm success. By having improved focus on the employee relation the key objectives can be accomplished in desired manner. Number of issues can be discussed effectively so that goals and objectives can be accomplished. By having improved focus on diverse activities key standards can also be well maintained so that sustainable opportunities can be attained in appropriate manner. In addition to this, it can be said that job enrichment, collective bargaining and further strategies are also beneficial for business firm like Tesco. It is because it lead business firm to impressive level of success.
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