Employee Engagement and Employee Relation at Waitrose - Coursework Example

Employee Relations and Engagement Table of Contents Table of Contents Organisational Outline 3 Employee Engagement (EE) and Employee Relation (ER) 4 Employee Engagement 4 Employee Relations 5 Drive Organizational Performance 5 The Case of Waitrose 6 Employee Engagement (ER) and Employee Relations Strategies at Waitrose 7 Employees as Partners 7 Creating Involvement at a Lower Level 8 Enabled Communication Systems 9 EE & ER Policies and Practice Within and Between Employees 11 EE & ER Policies and Practices on Current and Emergent Contexts 12 Recommendations 13 Use of Relevant Employee Engagement Survey 13 Select the Right Managers 13 Match the Employee Engagement and Relations Procedures at All Levels 14 Train Managers and Set Engagement Goals 14 Conclusion 15 References 16 Appendices 17 Executive Summary Forming an interpersonal relationship with the staff is one of the performance enhancement practices that most organization managements have currently incorporated. Many studies have shown employee engagement is beneficial in building a culture that appreciates diversity as well as a good working environment that satisfies both the employer and the employees. In the recent past, most top companies in the world have reinforced the need to create an atmosphere where the workers interact with and air their concerns to the management for effective organizational operation. Some firms have even structured their systems to allow the employees co-own the companies they work for and participate in their day-to-day management activities This has proved to be a plus in the attempts to improve employees’ performance. This report analyses the situation of Waitrose; a branch of the John Lewis Partnership. This study found out that Waitrose is a company that is dear to Employment Engagement (EE) and Employee Relations (ER). It was found out that Waitrose uses three basic practices to meet this demand: employee-partner system, creating low-level employee involvement and enabled communication systems. It is recommended that the company replaces its data survey system, select, hire and train managers who are passionate about employee engagement. Lastly, it was suggested that the company should develop assessment and evaluation frameworks for monitoring employee engagement. Introduction The human resource is among the key stakeholders that companies are keen on enhancing their welfare so they may perform highly towards the growth of the company. With increased research and studies, businesses are now enlightened on the importance of promoting and maintaining healthy and positive employees’ relations and engagement. Systems have been aligned to ensure that each and every employee within the organisation can efficiently interact, communicate and coordinate with others. The overall culture has also been modified to synchronise with the management’s pursuit to promote effective engagement and relations amongst workers. According to Bakker and Leiter (2010: 101), organisations are more likely to succeed and prosper if the coordination and engagement amongst their workers are enhanced. Working in an enabling environment motivates employees to deliver their best performance for the prosperity of the company. However, to promote these relations and engagements amongst employees, various frameworks and procedures must be put in place to guide action. Organisations, through the human resource management, have a daunting task of making this a reality through developing policies and standards that establish grounds of achieving proper employees’ engagement. This report seeks to explore the concepts of employees’ engagement and employee relation comprehensively while evaluating the case of Waitrose retail supermarket. Organisational Outline Waitrose retail supermarket is one of the celebrated outlets in the United Kingdom with over 322 branches. It is associated with JLP, a large store organisation in Britain. The company was founded by three pioneers namely: Wallace Waite, Arthur Rose and David Taylor hence the name ‘Waitrose’ (Taylor stepped out later on). Waitrose is reportedly the first outlets to indulge in selling organic food. The company’s initial target of 400 outlets in the United Kingdom is still on course and it has endeavoured to open as many as possible with only less than a half remaining to meet the objective (Richard, 2013: 55). Aiming to hit double revenue by 2016, the company has virtually done everything and utilised every resource at their disposal. The company has an estimated net income of over 120 million pounds. It is currently owned by John Lewis Partnership after taking acquiring it in 1937. Waitrose has close to one hundred thousand employees who work round the clock to ensure the company stays on course while driving towards achieving its objectives. With fierce rivals such as Tesco Company in the industry, the company has chosen to play with no or minimal mistakes. Working under the umbrella of John Lewis Partnership, most of the operations and structures within Waitrose have been, to some extent, been influenced by the mode of operations at John Lewis Partnership (Richard, 2013: 67). Employee Engagement (EE) and Employee Relation (ER) Employee Engagement According to Stewart (2010: 108), an employee engagement is an action meant to integrate the workers into the organisation system by allowing communication and the development of a professional interpersonal relationship between the employees and the company. To achieve a sustainable organisational performance (SOP) and enhance competitive chances within the market, companies must seek to ensure their internal environment is up and running efficiently. Among the major factors in the internal environment is the issue of the employees. It is the emotional feeling of attachment a worker feels towards their boss and the company they work for. It is the level of enthusiasm or passion an employee has on their job. It worth noting that engaged employees work for more than a pay check. They have the business needs at heart and strive to assist in fulfilling those demands in the best way possible within their capacity, Lack of an engagement is likely to slow down performance and minimise production outcome. Employee Relations Employee relation is, according to Bridger (2014: 76) , the interactive communication an employee develops with the company relating to policies, programs and decisions at work that touch on solutions to problems and challenges, approach to issues, complaints, unions among other things that require shared or joint negotiation. In the day to day activities at work, employee may encounter various challenges that if not solved may hamper their performance considerably. Having a clear system where information of this nature may be shared and solutions discussed is imperative for the success of a company. According to Cook (2008: 133), employee relations is principally concerned with how the management and the employee coexist and interact. It focuses on how their relationship can be enhanced to improve performance. At the same time, it controls the employment relationship formed between the employee and the management by structuring policies based on legal, political, social and historical contexts to direct conduct and behaviour. Drive Organizational Performance Waitrose is a reputable organisation that is known for its quest to generate income for its shareholders including its employees who happen to be part of the owners. Primarily, Waitrose makes money through making sales on a number of items it stocks in its numerous stores. The company deals with food stuffs as well as fashion and home appliance products. Through the sales of these products, the company generates revenue and raises profits that it uses to sustain its operations. Every single employee is engaged both as a co-owner and a worker in activities that are aimed at raising these revenues. This is the foundational drive that keeps perfomance in the organization uninterrupted. The Case of Waitrose Waitrose success in the United Kingdom’s market and its sustained organisational performance has been attributed to many factors by leading economists. Among the reasons why the company has sailed through over the years despite the stiff competition is the effective employee management. As a matter of fact, the relationship that the management has developed with its workers over years has contributed extensively to what the company is today. As Walker (2012: 97) puts it, the workforce is the engine of a company. When the engine is working well, the system moves on well without problems and vice-versa. The core of the internal company environment is the workforce. Their influence directly touches almost every stakeholder the company is tied to. With this realisation, Waitrose has invested a lot of resources in ensuring the welfare of the employee is well taken care of. Varied practices and strategies are in place to see the expected healthy relationship and engagement between the management of Waitrose and its staffs is developed and maintained for the betterment of the organisation. Ranging from communications, industrial relations, participation, conflict minimisation to involvement in programs, many strategies and structures have been put in place to guarantee effective employee relations is achieved and that the staffs are comfortable. The human resource management works closely with the workforce as well as the organisation to bring a balance between the two so both personal and organisational goals can be achieved equally. Employee Engagement (ER) and Employee Relations Strategies at Waitrose There are number of strategies Waitrose as a company has deployed to successfully engage its employees and ensure there is a free flowing interaction between its management and the staff. Employees as Partners One of the outstanding practices at Waitrose is tendency to engage the employees as partners and not just mere workers. Being an affiliate of John Lewis Partnership, this culture has been absorbed and practiced for quite some time now. All the employees in the company are designated as partners and every worker feels part and parcel of the enterprise they are working for. In fact, they are co-owners entitled to specific bonuses and benefits. In the past four years, the bonus has ranged from 14 % to 22% of the total partner annual salary. Similarly, employees at Waitrose benefit from a discount when they purchase at Waitrose and John Lewis Partnership store. They are given a green card upon completing 3 months in service with the company. This enables them to obtain goods at these stores at 15% discount if they buy from Waitrose and 25% for purchases made at John Lewis Partnership outlets. The benefits in terms of employee engagements that come as a result of this are unbelievable. When workers are made to be believe they co-own the business, their performance improve extensively. According to Macey, Schneider, Barbera, and Young (2011: 100), companies’ performance is greatly influenced by decisions made by the management that touch on the welfare of the employees. Well-thought out long term decisions concerning the engagement of the employees with the organisations bring positive result to the flow of work in the company and vice-versa. For example, the attitude and perception of the workers at Waitrose have changed ever since the system of a ‘partner-employee’ was introduced. Staffs within the companies are working with the perception that the business is their personal projects and not as workers hired to work for someone else. The mentally and physically own the business and this acts as a worthy source of motivation. Stewart (2010:110) states that workers are more likely to develop positive relationship with the organisation’s management if they realise the system is ‘pleasant’ to them. Organisations that are oriented towards meeting the needs of its employees are more likely to achieve its goals a little faster. This makes Waitrose’s programs worthwhile both in the current and emergent contexts. Creating Involvement at a Lower Level Since the organisation is a multi-branch enterprise that intertwines at different levels, the need to create forums through which the employees can interact and participate in the running of the organisation rises for effective employee engagement. The company has Branch Forums that provides an opportunity for the employees to discuss and reflect on some of the issues affecting them and the company, propose solutions and demand for clarifications on those they are not clear about. Through a democratic election, Partners who act as the representatives of the workers are chosen to assist in the running of the organisations (local outlets). This work interaction promotes social engagement as workers discuss various ways and tact of improving their performance and that of the organisation they work for to meet the long-term goals. In the process, the social interaction and engagement also enhance the development of affective engagement as individuals establish and develop interpersonal relationships. They start to feel the positive emotions of love and belonging. They certainly, due to the challenge they get from the group interaction, develop intellectual engagement prompting them to find even better solutions to some challenges they face (Lewin, 2006: 144). Viewing this from the perspective of social exchange theory, it is apparent that the involvement of the employees at different level is a strong motivation; a force that is driving the organisation towards success and economic prosperity. The theory posits that individuals weigh cost and benefit before engaging in any action. If they realise the benefits are lesser than the cost then such actions are likely to be abandoned. In this regard, the active engagement of the employees in the operation and managerial activities of the company is driven by the fact that they own a part and making the company succeed is something they cannot relent on. They would put all their efforts to see the company through since the success of Waitrose affects positively their bank accounts. The benefits reaped out are greater than the cost/efforts put. This is a driving force that keeps the employees to deliver their best performance to the company because they own it (Williams and Adam-Smith, 2009: 121). Enabled Communication Systems One key aspect of Employee Engagement and Relations is communication. The transfer of information from one party to the other is essential in a work environment. Albrecht, (2010: 122) pinpoints that there are several organisations that have effective communication channels but response from the employees are not enabled making it extremely hard to address some of the issues affecting the staff. In such ‘one-way’ communication systems (such as the military), employees continue working with order from their bosses such that the difficulties they encounter go unaddressed hence slowing down performance and eventual outcome of operations. However, at Waitrose, the basic principles and values that underpin the philosophy and the culture of the organisation predispose the company to embrace effective and healthy communication system that favour both the management and the employees (Cook, 2008:131). Communication is an aspect of employee relations that has profound impact and has the capacity to influence the entire organisational system (Garber, 2011: 111). Employers need to bargain individually or collectively for a wage through communication. Without proper communication, there is absolutely no activity which can proceed. Trade Unions sometime come in place to negotiate and communicate on behalf of the member employees. However, even amongst the members there must be a decorum and good communication before the grievances are raised to the bargainers (Trade Union) for intervention. At Waitrose, there are systems and policies put in place to ensure communication is not altered. For example, at Waitrose, confidential envelopes are availed to every worker every week so they may write some of the issues affecting them so the top management can address. The staffs are able to post their concerns, which are then forwarded to the relevant managers or directors for response. This gives them a voice to express their dissatisfaction and appreciate the areas they felt were well handled. The letters are written anonymously and taken to the either chairman or recognised high scale managements. The program is efficiently running with over 14 letter response received every week. This is great forum established to enhance employee voice. The workers are not intimidated since their letter are confidential regarded with anonymity. Communication at Waitrose is evidentially special because of the enhanced level of interaction between the management and the employees that has been enabled by the structures and systems installed within the organisation. For instance, it is easy for an employee to access directly the top management offices in case they have a concern they feel the intermediary bodies cannot address to their satisfaction. Unlike other companies that deter interaction between the employees and the management, this firm is actively engaged with its employees at all levels. Workers are, therefore, not intimidated by their top bosses and this facilitates effective leadership as well as high performance, EE & ER Policies and Practice Within and Between Employees It is worth analysing if the policies and practices set and seen at Waitrose that are aimed at enhancing employee engagement and relations indeed fit within and between them. Principally, the major aim why the management formulates these policies and engage the employees in these practices is to improve the relationship, inculcate the right mindset and develop positive attitude for work. As already mentioned the firm has a myriad of policies and practices that direct taking of actions. In most organisations, policies are never considered to be part of an organisational culture because most of the time employees resent against them. However, at Waitrose, policies that would have otherwise been regarded to be harsh are sugar-coated in a way that all employees embrace them overwhelmingly. This tactic makes the organisation run smoothly without much conflicts (Bolton and Houlihan, 2009: 120). Observably, one thing that can be noticed is the ease in integrating these policies and programs that are aimed at enhancing the relationship between the management and the workers in this organisation. It is indubitable that the programs are beneficial to the employees as the 69, 000 staff barely resent against them. The fact that they participate in the construction and formulation of these policies makes it easier for them to personalise their demands. The dire need for effective communication systems that guarantee confidentiality through which grievances, dissatisfactions and discontent can be expressed makes this program worthwhile. EE & ER Policies and Practices on Current and Emergent Contexts With the fast growing generation of global trade characterised by globalisation, the policies and programs as well as the practices are structured in such a way that they can charter for the organisational changes and modifications that may come in the future (Bates and Weighart, 2014: 48) . As at now, the competitive nature of the market and industry Waitrose is operating in a context that demand impeccable strategies and plans both in the internal and external environment if one is to succeed. The internal systems of Waitrose especially those that regard to employee management are well taken care of, thanks to the aforementioned practices and policies. The modern business contexts require organisations to work closely with all their stakeholders including the employees to produce the best results. The way to achieve this is through maintain healthy relationships between the employees and the management; something that Waitrose can brag about. Consequently, the ever advancing technology is a force to reckon in the foreseeable future. Companies must therefore be oriented to withstand the forces of change that will shake every wall that could minimise business activities. Waitrose is highly fortified to move into the future knowing it has employees committed to swimming along its course. For example, basing on Employee Management Model, the four aspects: Voice, connection, scope and support, employees feel they have a voice (available communication forums), they are valued, they are autonomous and understand what they do, and find pride in what they do (self-identification). They are able to stand committed with organisation till the end. Recommendations Although Waitrose has demonstrated high level of employee engagement and relations, there are a number of adjustments that can be done to enhance further the employment relations and engagements. Use of Relevant Employee Engagement Survey As discussed, one way in which Waitrose uses to collect data concerning the employees and their engagements is through the Newspaper. When surveys that are irrelevant or non-comprehensive are used to, it becomes very difficult to act on. For example, some individuals may not want their concerns posted regardless of the anonymity created. It would make some of them to shy away from directing the concern they have to the right person for assistance. Replacing the Newspaper system with an opinion box that is well-constructed to keep confidentiality would be better. Select the Right Managers Consequently, as noted at Waitrose, everyone is a boss in one way or the other. Partners are elected by the employees. However, the managers who oversee the day to day running of the management activities are hired. It is therefore important that the senior executives should select the right managers who can work hand-in-hand with the employees to deliver best performance for the organisation. There are cases when conflicts arise in situations when managers do not appreciate the need to engage and create relations with the employees. Having managers who understand the success of the organisation is an outcome of the worker achievements would eliminate these conflicts (Bridger, 2014:99). Match the Employee Engagement and Relations Procedures at All Levels As seen, at the lower level, the employee involvement is extremely high. However, it is sometime a challenge at the middle and the high levels. The management may lose the grip focusing on the low-level workers while ignoring the middle and the higher levels; something that may be disastrous. It is important the company considers and handle all employees the same way to ensure uniformity and free flow of work. This means that even as the Waitrose management focuses on the grassroots workers, it could also seek to engage positively with other staff in other capacities (Stamm & Coffman, 2009:88) Train Managers and Set Engagement Goals According to Berens (2013: 44), managers are directly responsible for the extent of engagement and relations an employee has with a company. It is, therefore, important to coach the managers who handle these employees so as to show them how they can emotionally attract the employees to the works the do. Consequently, since Waitrose does not have a clear employee engagement evaluation strategy, it would serve to the best interest of the company if one is established. The company would then task every manager to set goals and pursue it till employees are all engaged. This would help track the records of the managers and ensure they work towards creating a connection between the company and the employees. Without assessment or evaluation frameworks, it becomes hard to know if the employees are with the company or they have distanced themselves. Setting a weekly goal would be viable as every leader would engage their team to meet this goal. Waitrose should establish a framework that allows every manager evaluate and reports about their team in this regard (Dickson, 2011: 69). Conclusion Employee engagement and relation is a significant concept that organisations seeking to achieve long-term success my focus on very seriously. Various companies have invested highly on this with some developing policies and practices as well as programs aimed at meeting this need (Bolton & Houlihan, 2009:99). In the case of Waitrose, a number of moves have been made to ensure employee-partner concept is actualised. First, there are a number of benefits employees get as they work for the company. Secondly, the company has created an involvement at the lowest level to capture the ‘ground’ staff that may have little knowledge of how the company is dealing if abandoned. Also, the company has established communication system through which employees can air their voices to the management. It is suggested that the firm need to change the Newspaper system with a more established and convenient system. Managers should be carefully selected and trained for employee engagement. Finally, goals should be set and monitored if a complete involvement of the employees is to be achieved. References Albrecht, S. (2010) Handbook of employee engagement, Cheltenham, Glos, UK, Edward Elgar. Bakker, A. & Leiter, M. (2010) Work engagement, Hove [England], Psychology Press. Bates, S. & Weighart, S. (2014) Executive Presence: The X Factor in Employee Engagement, Employment Relations Today, vol. 41, no. 3, pp. 47-52. Berens, R. (2013) The Roots of Employee Engagement-A Strategic Approach , Employment Relations Today, vol. 40, no. 3, pp. 43-49. Bolton, S. & Houlihan, M. (2009) Employee relations, Bradford, Emerald Insight. Bridger, E. (2014) Employee engagement, London, Kogan Page. Cook, S. (2008) The essential guide to employee engagement, London, Kogan Page. Dickson, D.A. (2011) Fostering employee engagement: practical tools and best practice techniques, Amherst, MA, HRD Press. Garber, P. (2011) Coaching employee engagement training, Alexandria, Va., ASTD Press. Lewin, D. (2006) Contemporary issues in employment relations, Champaign, Ill, Labor and Employment Relations Association. Macey, W.H., Schneider, B., Barbera, K.M. & Young, S.A. (2011) Employee engagement tools for analysis, practice, and competitive advantage, Hoboken, John Wiley & Sons. Richard, D. (2013) How To Start a Creative Business, Cincinnati, F+W Media. Stamm, S. & Coffman, C. (2009) 42 rules of employee engagement: a straightforward and fun look at what it takes to build a culture of engagement in business, Cupertino, CA, Super Star Press. Stewart, P. (2010) Employee relations, [Bingley, UK], Emerald. Walker, S. (2012) Employee engagement and communication research: measurement, strategy, and action, Philadelphia, Pa, Kogan Page. Williams, S. & Adam-Smith, D. (2009) Contemporary employment relations: a critical introduction, Oxford, Oxford University Press. Appendices Appendix 1 Practice/Policy Benefits i. Employee-Partner System This enhances relationships between the company and the employee. Improves a sense of belonging and identity. ii. Low Level Involvement Employees on the ground are well-informed about the company. It improves all-round participation. iii. Enabled Communication Systems Provides the employees with a voice. Appendix 2 Recommendation Significance i. Alternative Survey This will ensure comprehensive data is collected. ii. Select Right Managers This will enable the company have managers passionate about employee engagement. iii. Train managers and set goals This will help monitor and evaluate employee engagement. Read More