Employee relation refers to several actions that has been performed by employer in order to maintain healthy relation with employees. An organisation that maintain healthy employee relation provide consistent and fair treatment to its employees that further help them in remain committed toward their work and stay loyal to company (Crespo and et. al., 2011).
ALDI is a discount retail supermarket which operates its business internationally and offer variety of product in categories like food, beverages, sanitary product and household essentials. This project contains a detail description about value and importance of employee relation for an organisation along with fundamentals of employment law. In addition to this it describe about several rights, duties and obligation that employer and employees have at workplace along with suggestions to improve employee relation by following it. This also includes stakeholder analysis and positive as well as negative impact of employee relation over different stakeholders.
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P1. Explain value and importance of employee relation in ap[plication with organisational example?
Employee relation is defined as an efforts made by company for maintain a relationship between employees and employer. An organisation with healthy employees relation are considered as more productive and competent at marketplace because happy employees work with more efforts and dedication. The reason behind it is that when employees get fair and consistent treatment then they remain committed to their job and contribute toward the accomplishment of organisational goals (Dávila and Piña-Ramírez, 2014). ALDI is an internation retailer which offer variety of products through its supermarket that operates in different part of world. It maintain a large workforce that highly contribute toward expanding market share by keeping customer satisfied with their service through maintaining direct interaction. So, it is very essential for company to maintain healthy relation with its employees to keep them happy and loyal toward company.
From different survey it has been found that the employees of ALDI are complaining that they are pressurize to work harder as well as extra hours. This is the major issue which creates dissatisfaction among workforce and also leads to employees turnover along with negative publicity of brand. So in order to overcome this, ALDI must put more emphasis toward improving its relation with employees in order to reduce workforce issue and maintain their performance in marketplace.
Following are the value and importance of maintain better employee relationship with an organisation:-
- Increase productivity:- By maintaining a better relation with employees, ALDI will be able to make company a better place to work which support in influencing employees to work more effectively (García‐Cabrera and García‐Barba Hernández, 2014). As when an employee is happy to work for company then it will put more efforts toward work for enhancing productivity and this in turn will help company in generating more revenue.
- Discourage conflicts:- When employees are treated fairly then they started following the instruction provided to them regarding their work. This results in less stress among employees which in turn reduce the chance of conflicts among the employees toward management.
- Retain loyal employees:- A worker who experience a negative environment and doesn't have amicable relation with its employer are more likely to leave the organisation. So by maintaining healthy relation with employees ALDI will be able to create a workforces of loyal employees who stay and work for organisation for longer period of time.
These all are the benefit that ALDI will get by maintaining a healthy relation with its employees at workplace. Following are the mechanism through which ALDI can improve employees relation that support it to overcome from its current issue:-
- Delegation:- ALDI must delicate some authority among its employees in order to enhance their skill by challenging them with hard tasks. This help in increasing their confidence and trust toward management which help in improving employee-employer relationship (Hameed, Ramzan and Zubair, 2014).
- Divide work:- ALDI can improve its relation with employees by reducing their work stress through dividing their work among others. This will provide dual benefit that employees be able to complete their task on time and organisational objectives will be accomplished.
- Appreciation over performance:- It is one of the most essential factor that must be consider by ALDI for creating better employees relation. Company must appreciate also reward its employees over their better performance which support in keeping workforce motivated toward their work and satisfied with employer policies.
P2. Explain the fundamentals of employment law that applied to specific organisational example
The major issue faced by ALDI is increasing dissatisfaction among employees regarding their job due to high pressure over employees in term of their work and extra hours which they give toward work (Hogh, Hoel and Carneiro, 2011). This issues has affected the employer-employee relation up-to a large extent and also leads to negative publicity in marketplace. So in order to overcome this ALDI must focus over imposing several employment law within their organisation that support in developing a sense of trust among employees toward management. Employment law consists of certain guidelines or policies imposed by government to protect the interest of workers at workplace and protect them from any sort of exploitation.
Following are some Act involve within employment law which ALDI must follow in order to improve its relation with employees and its image at marketplace. These are explained below:
Working time regulation 1998:- It is an employment law imposed by UK government with an aim to limit the working hour of employees so that they can not be exploit by its employer. As per this law worker cannot lawfully need to work for more than 48 hours within a week. In addition to this, it also provide workers a benefit of minimum daily rest period in each working day or between their shift. This law must be implement by ALDI at its workplace which help in limiting the work of employees and also help in reducing their stress and dissatisfaction toward company.
Flexible working regulation 2014:- It is an another Act of employment law which is generally imposed by UK government to provide an option of flexible working hour to employees where they chooses time to work as per their need. In order reduce the issues of employees regarding their working hour, ALDI must implement this law in order to favour its employees a time and location in which they prefer to work (Maurer and Chapman, 2013). This help in minimizing the issues and dissatisfaction among employees.
Discrimination Act:- It is a body of law which restrict the practices within an organisation regarding any sort of discrimination to employees in term of their age, gender, culture or nationality and promote quality at workplace. ALDI must implement this law and focuses toward providing equal opportunities to its employees that further support in improving the performance as well as productivity of employees at workplace.
Contract of employment Act 1963:- This is an Act of UK parliament which introduce the requirement of legal notice regarding the terms and conditions over which an employees have to work within the organisation. By clearing working condition in advance with employees, ALDI will be able to avoid conflicts in future.
Health and safety law: This act states that employer are required to ensure safe working environment to customers in which they gives major priority to employees health. In context to ALDI, it is required by manager to conduct safe working practices which ensures employees that they will not face any risk related violence at workplace.
P3. Explain different types of right, duties and obligations that an employer and employee have within workplace.
An employer is responsible for providing a favourable and safe environment to work so that its employees can perform their tasks effectively. So in this regard there are several obligation that are required to be perform by an employer in favour of its employees. It will help ALDI in keeping customer satisfied with their work as well as organisations. Following are the rights and obligations of employer:
Obligation or duty of employer:
- Fair treatment:- This is a prior duty of employer that it must treat its employees fairly and does not exert poor treatment or discrimination sort of behaviour in front of employees (Mowday, Porter and Steers, 2013). As it may lead employees to loose concentration and motivation in their work which also results into employee turnover. Under the Fair Labour Standards Act, ALDI is obliged to treat its employees fairly and should not force them to perform operations that are beyond their capability.
- Safety:- An employer has a duty to provide a safe and secure environment to its employees where they can work freely and without any fear. Under Health and Safety Act, ALDI is obliged to create such a workplace which is safe enough for employees to work and doesn't involve any sort of risk to health. This support ALDI by enhancing their productivity as well as employees satisfaction regarding their job.
Rights of employer:-
- The employer has a right to set standard regarding their criteria of recruiting best person for their job position in term of their capability, educational background and experience.
- Employer has a right to demand from their employees to work in the best interest of company and not their own and they must not solicits the business for their personal benefit (O’Leary and Pulakos, 2011).
- The employer has a right to demand from its employees that the confidentiality information or trade secret of company must not be shared to third party.
Apart from all this, employees also poses certain duties or obligation that they are required to perform for the interest of organisation as it is their morale responsibility. In addition to this employees have certain rights which help them from being protected against any sort of discrimination or exploitation at workplace. These rights and duties are explained below:-
Obligation or duty of an employee:
- Employees are obliged to cooperate with employer in Health & safety matter and must not misuse the equipments that has been provided to them for safety purpose at workplace (Silva, Hutcheson and Wahl, 2010).
- Workers are obliged for not sharing information of employer publicly or to the third part until and unless it has been asked by the employer.
- It is the duty of employee that it must compete in business against its employer while they are still working within the organisation as a regular worker.
Rights of employee:-
- Working condition:- Employees has a right to expect or demand from its employer a job within safe environment which doesn't involve any sort of hazard or undue stress. Harmful working environment also add more unreasonable job responsibility which not any employee to perform its task effectively.
- Equal employment opportunity:- Employees has a right to work in an environment which is free from harassment and discrimination as per Equality Act. This law safeguard the right of employee and provide them an opportunity to demand for equal opportunity from employer in term of pay, remuneration, working hour etc.
P4. Determine appropriate advice related to the rights, duties and obligation of employment relationship to ALDI
Employer has several obligation as well as duties that it must fulfil effectively in order to maintain a healthy relation with its workforce which further support company to retain its employees for longer period of time. In addition to this employees are also responsible to contribute toward improving their relation with employees by performing their part of obligations (Verwijmeren and Derwall, 2010). This will also support in minimising several issues that are usually faced by both the parties at workplace. Following are the advises recommended to ALDI:
- Employee relationship:- In case of ALDI, employees are being forced to work harder and for longer period of time despite of their regular working hour which is main reason behind workplace relation related issues. So in order to improve its relation with employees, ALDI must perform its obligation of fair treatment for its workforce. For this ALDI can either hire more employees at the time of work pressure so that task can be divided among other staff or it can divided the shift of employees so that they can get rest from their work.
- Health & Safety:- Apart from this ALDI must focuses toward providing a healthier and safe working environment where employees can work freely without any fear. employees has a right to demand a healthy workplace environment with better working condition. In this employees can voice against this extra working pressure so that strict action can be taken or they demand for extra pay over their work.
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P5 Conduct and complete a stakeholder analysis for a given organisation
Stakeholder refers to group of people who are linked with company and affect or get affected by actions performed by a company. These group of person are consider as very essential for an organisation as it contribute toward the success and growth of company. Therefore stakeholder analysis is very essential for ALDI in order to determine several ways in which they can influence the functionality of company (Morrison, 2011). Apart from this it also help in analysing several growth opportunities which stakeholder will provide.
This analysis can be performed using stakeholder mapping technique which is generally used to analyse and identify the need of its stakeholder. It is basically used to analyse all key stakeholders i.e. primary as well as secondary those who vested interest in operations performed by a company. This Stakeholder mapping technique will be used to perform analysis over the key stakeholder of ALDI. This technique work over researching, discussing and debating in order to determine multiple perspective for entire stakeholder spectrum and for this mapping is broken down into four phases:-
Low power, low interest – Supplier of ALDI lies in this section. Vendors of company has many clients so they aren't much interested in changes which are happening in the organisation. ALDI also have many suppliers and it can be considered as the main reason that their vendors do not have much power. Stakeholders who are present in this part of the matrix are least important. Organisation should send their newsletters and other general information of the company on regular basis.
Low power, high interest – Employees of ALDI do not have much power but they are highly interested in the decisions taken by management as it directly or indirectly make a huge impact on them. Beside following the strategy of ''keep them informed'', company can consult few things with workers which lies in their area of interest and help management in making decision.
High power, low interest – ALDI has few investors who does not care about day to day operations of the organisation. They have power to reverse a decision but they do not take much interest in board meeting as these financial institutions has invested their money in various MNCs. ALDI should meet the needs of these investors and they should try to keep healthy relationship with these type of stakeholders.
High power, high interest – Employees in top management, key investors etc. are few examples of stakeholders who fall under this part of matrix. They make all the important calls for ALDI and they are concerned about daily operations, as well as, long term plans of the enterprise. Company should involve them in decision making and their views should be considered on priority basis.
From this analysis it has been identified that in order to deal with the issue which ALDI is currently facing regarding the employees dissatisfaction, company is required to focus over employment engagement. This can be done by involving them during the strategy formulation, inviting suggestions from them and improving the communicational flow so that they feel value while working within the organisation.
Stakeholder engagement is very essential for a company as they have the capability to influence the operations performed by company. The involvement of stakeholders within the organisational processes of ALDI will support company in performing their operations in more effective manner with mutual contribution of stakeholders. This further support in enhancing its profitability and market acceptance (Mouriño-Ruiz, 2010). For instance, by involving employees within the strategy formation and decision making will help ALDI in performing their operation in a more informed manner. This also help in enhancing the employment relationship within the organisation which also leads to maximum productivity. buy assignments in australia
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P6 Analyse the impact of both positive and negative employee relations on different stakeholders.
Employees are very essential part of an organisation which contribute toward the accomplishment of organisational goals by performing several operations. The growth as well as success of a company is depend upon the quality of work done by the workforce. Hence ALDI must focus toward improving its relation with employees in order to enhance their performance at marketplace and achieve desired success (Mittal and Dhar, 2015). The positive as well as negative employee relation has a great influence over stakeholder up-to large extent, which can be better understood through following point:
Impact of negative relation over stakeholders:-
Negative employee relation is one when the employer doesn't put more emphases toward employees requirement at workplace and don't treat them fairly. This results into job dissatisfaction among employees, conflicts and several issue may arise related to work which may affect the performance of employee and that in turn also influence its market performance. ALDI is currently facing employee relationship issue due to unfair treatment which they exert toward its workforce. This may influence the performance of the company that have a negative influence over its stakeholders. For instance, dissatisfied employees may not provide much attention to customers which lead to shrinking of market that may left company in loss. This also affect the investors as they find less interest in investing fund within company.
Impact of positive employee relation over stakeholder:-
Positive employee relation will help ALDI in improving the performance of its employees which in turn enhance the profitability of company. This help company in representing a positive image at marketplace that also contribute toward increasing its goodwill that support in keeping stakeholder more engaged in action performed by company.
For instance, a good image in marketplace help ALDI in attracting investors to contribute more and support company in achieving success at marketplace. In addition to this positive relation help in enhancing the performance quality of employees which help in bringing more customer satisfaction from the services provided by its employees.
Apart from this negative employee relation will increases the job dissatisfaction that also leads to higher employee turnover within ALDI. This increase in employee turnover will also have an huge impact over government relation as ALDI highly contribute in GDP of UK through job creation, tax contribution and spending with British-based businesses.
So, ALDI must try to maintain a healthy and positive relation with its employees so that their performance could be improve at marketplace and issues related to work can be minimised. This further support company in achieving higher profitability and success at marketplace.
ALDI must work toward creating a positive relation with its employees through providing them various rights like equality pay or opportunity and better working condition at workplace (Demerouti and et. al., 2010). This help in minimising the conflicts at workplace as positive relation bring job satisfaction which lead employees to work collaboratively at workplace. Hence, employees work with more coordination and peace without any sort of work related issues which leads to accomplishment of organisational success.
From the above given information it can be conclude that employee-employer relation plays an essential role within the growth and success of a company as employees. An effective employee relation help a company to enhance its productivity that further contribute toward achieving competitive advantage at workplace. So in order to maintain effective employee relation an employer must follow employment law such as Working time regulation 1998, Flexible working regulation 2014 etc. In addition to this employer and employee have certain rights, duty as well as obligation which both must follow in order to maintain a healthy relation that also provide mutual benefit.
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