Analysis of CIPD Employment Relations Survey Report of Tesco Company - Coursework Example

 Employment Relations (a) Evaluate the key findings from the CIPD Employment Relations Survey Report (April 2011) Introduction Tesco Plc is a private business company, a chain store with presence in UK and USA. Consequently, labor laws and issues affect it just like any other business in the industry. Significantly, issues to do with employee engagement and employment legislations are of great concern and interest to the company (Loukaidēs 2007, p. 6-8). Therefore, the findings from CIPD employment relations survey are significant to its present and future operations. CIPD Employment Relations Survey Findings The key areas of concern from this report include union representation, informing and consultation with employees, current and future employment relations and possible strike action. Management and Unions The state of the market is such that CIPD is reporting a positive relationship between trade unions and employers. With 55% of respondents agreeing that the union-employer relationships are either positive or very positive, there is much information that can be extracted from this. However, since the figure is declining compared to previous surveys, so companies should realize that their engagement with the unions is dwindling which effectively puts them into a worse situation. The result of this is that the unions might make work difficult for the operations of firms in the private sector such as Tesco through strike action (Arjun 2009 p. 47-48). Therefore, Tesco Plc needs to improve its relationship with the unions as it continues its operations in the market to enhance stability and quick employee dispute resolution. Personal relationship between union officials and the company managers should also improve to ensure quick, easy and honest flow of information aimed at resolving conflicts. The survey further highlights the obstacles to effective relationship between the unions and the management of companies. Despite a good number (37%) proposing that unions do not understand the operating challenges for the business, quite a number identify hard hand management practices from company management as the cause ("Employee Relations" 2007, p. 83-87). Therefore, companies in the service sector such as Tesco must find ways of improving that vital relationship. Impact and Influence of Unions The survey finds that unions have significant influence on the organizations where their activities are recognized. This is so accepted that 63% of employees who recognize the activities of unions attest to the position with regard to the significance of union (Chattered Institute of Personnel and Development 2012, p. 23-26). This general trend is increasing when compared to the figures from previous surveys. It provides an indication that companies keen to benefit from the significant impact of unions in their organization must recognize their efforts and engage them in employee management. The report however indicates that most employers agree that the unions have grown weaker in terms of their influence on the operational activities of various organizations. However, 19% of respondents in the survey indicate that the influence of unions has grown stronger which brings us to an invariable position. The conclusion for organizations in the private sector would be to appreciate the significance of the unions and continue engaging them in their operations since there is still a good significance on the organizations (Chattered Institute of Personnel and Development 2012, p. 23-26). Further, there is a good trend when it comes to unions’ participation during consultations for major changes in the industry. A good number (45%) of respondents agree that unions participate constructively when such changes are proposed. This is an indication of how willing the unions are to aide in the implementation of proposed changes through a consultative process. What remains is whether the management of the organizations can involve them adequately and this depends on the relationship of the two sides. Tesco faces a situation where it has to respond to various changing situations from time to time (Tesco 2012). For it to remain profitable, there are issues to do with employee remuneration, which must be reviewed from time to time. The unions are therefore an effective avenue for Tesco to assess and implement such changes which facing serious strike actions. Strike Action Unions champion the interests of their members. According to the CIPD survey, there is more strike action for companies who recognize unions than companies who do not (16%) in a financial year compared other organizations. This figure is also a decrease from the previous study and thus indicates that unions are embracing a consultative approach than in the previous year. For Tesco however, this figure is not as high in private sector where the respondents who report as having been affected by strike action being 8%. Generally, the trend in strike action is declining and that is because the relationship between managers and union officials is improving (Gunnigle and Morley 2002, p. 13-17). The key concern for Tesco and other private companies is the reason for strikes. Most respondents agree that strikes occur due to redundancies in the organization as well as payment and overtime issues. This total comes to 70% of all respondents making these the crucial issues to be managed to prevent strike action. Informing and Consultation with Employees According to the report findings, there is affair consultation strategy among private firms. Employees acknowledge that their firms organize forums to consult them on various matters. In fact, up to 66% of those interviewed are positive towards the consultation strategies employed by their firms. They acknowledge that the firms inform them adequately through special forums. Considerably, most of the respondents who admit to consultation also admit to representation through unions and non-union. A good 43% of the respondents agree to being represented through unions and non-unions. Since most of the employees interviewed appreciate the significance of unions and are ready to participate in the actions by unions, it is necessary for Tesco plc to appreciate this role, which will help in reducing civil action by employees (Barrow and Moseley 2005, p. 16-18). The company should engage the services of the union to resolve employee dispute of which have become regular occurrences in the industry. The administrative policies of Tesco seem to be not to engage employees to the maximum through policies such as unpaid sick. This is responsible for the negative picture for the company and which is causing the management and market dominance of the company to be at stake. Current and Future Employment Relations The market is anticipating industrial action more than ever with over three quarters of the respondents in the survey admitting to a more unstable period where more industrial action is likely (Loukaidēs 2007, p. 6-8). Following this expected situation, the solution for employees in both sectors (private and public) is to engage employees more through their unions since unions are still capable of causing more instability in the market. In this regard, 65% of employers agree that the solution to the problem of industrial action is by engaging the employees. (b) Advising Tesco Plc on Emerging Employment Relations Issues Tesco Plc as an organization needs to change and adjust according to changes and trend in the employee management practices. The organization must be sensitive and elastic with regard to issues affecting employees to ensure sufficient productivity and protection of the company’s image. Lately, Tesco Plc has found itself entangled in legal suits related to employee welfare and so must come out of such bad image. Employee Engagement Employee engagement involves coordinating and integrating employees and all members of an organization to appreciate and take up their roles more willingly than through set out rules (Stewart 2010, p. 74-76) An employee who feels engaged into the activities of the organization is self-motivated and is ready and willing to identify with the role assigned to him thus puts more effort towards completing the assignment. The other advantage that arises from engagement of employees is that the employees will work with renewed vigour, dedication and concentration since they feel they are part of the decisions. However, this is not case with Tesco Plc. As a service company, Tesco needs to engage the employees more to bring the best out of them. If the employees are involved in the company management processes, they will take it upon themselves to ensure that the objectives of the company are met as outlined. Further, they will be able to work with dedication and enthusiasm, which is necessary for keeping customers and fighting competition from other chain stores. In its attempts to engage employees, Tesco should consider the three methods of intellectual, affective and social engagement since it is only through the interplay of the three that effective results can materialise. The most effective ways of achieving this is by creating meaning of work and creating forum for employees to express their views (Stewart 2010, p. 74-76). Tesco should also support employee growth and enhance integrity in the management line. Employment Legislation Tesco Plc should assess and realize the context of application of UK employment legislation. In this case, the employment legislations cover employees during recruitment, in the course of employment and at termination of employment. Following recent industrial suit by employee unions on the methods used by Tesco to mange its employees, it is necessary that these legislations be considered. The key issues of conflict in the recently reported suits include non-payment for sick leaves as well as non-payment of commensurate remuneration for overtime. Law with regard to these issues protects the employees and so comprehensive consultation should be done to ensure employees do not feel aggrieved with such changes. It is only in such circumstance that the company will agree and compliant with the legislations ("Jacobs and White, the European Convention on Human Rights" 2002, p. 14). Further, human rights organizations advocate for equal treatment during recruitment, employment and termination of employment. According to equality Act 2010, harassment and victimisation are taken to be discrimination, which Tesco must be aware of. This is because situations where employees have to work even when they are sick tantamount to harassment. Conclusion In order to improve relationship between employers and their employees, major areas of concern such as having a union representing employees have elevated the rate of dispute resolution. The unions have also yield results as far as managing employees is concerned. It is worth noting that mediation and consultative effort made by unions in order to make changes in the structure and management have proven effective. As for instances where possible strike action is deemed fit, the unions have advised accordingly. Employees have acknowledged the efforts made organizing forums to consult them on various matters affecting them and the recommendation to improve current and future employment relation. References Arjun, K, 2009, Employee engagement in UK chain retail stores: a study of Asda, Sainsbury's, and Tesco Wrexham stores. Barrow, S & Moseley, R, 2005, The employer brand: Bringing the best of brand management to people at work (2nd ed.). Hoboken, NJ, USA: Wiley. Chattered Institute of Personnel and Development, 2012, Employee Outlook. Outlook Series, CIPD, July 2011, 2-16. Retrieved from http://www.cipd.co.uk/hr-resources/survey-reports/employee-outlook-spring-2012.aspx. Chattered Institute of Personnel and Development, 2011, Employee Relations at Capgemini, UK. CIPD, November 2011, 2-9. Retrieved from http://www.cipd.co.uk/hr-resources/research/employee-relations-capgemini-uk.aspx. 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