Employment Relations In The Business Markets Commerce Essay


Complete the following questionnaire for an organisation of your choice. The organisation should employ at least 200 staff directly. When completing the questionnaire students need to refer to a text book such as Lewis et al (2003) Employee Relations . The answers sought from the questionnaire should be addressed after reading the appropriate pages of text. On average the reading should take no more than about ten minutes (some will take only a few minutes and others maybe twenty minutes). The questions seek information about organisation of your choice, which either directly or indirectly impacts upon employment relations.

In conjunction with your reading you will need to seek out the relevant information from your organisation. The information can be sought from either existing documents and/or via discussions with people who can supply the information. Some questions will be straightforward for you to answer and others will take greater thought and research on your behalf. Even for those questions you find straightforward you should spend a little time thinking about it prior to and after the directed reading. Ask yourself if you need to check anything with others inside or outside your organisation for clarification. You need to answer all of the questions.

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The answers are in the readings, your organisation via records or interviews - or at the end of a telephone line. All these methods of enquiry will allow you to answer the questions successfully. Only very short answers are needed - do not use any more space than that provided. You may answer the questions in any order. Type set is preferred.

Name of Student JOHN BUBARIS, Student code: 079022949

Name of Organisation TESCO

Goods/Services provided TESCO is a grocery and general merchandising retail chain.

Total numbers employed at the site 468,508 (2009)

Does the company have other sites? Yes √ No______

If yes, give brief details of their workforce size and goods/services they provide if different from your own

If no, give brief details of similar organisations to your own and/or main competitor

Tesco's UK stores are divided into six formats, differentiated by size and the range of products sold. These are:Tesco Extra (190 stores), Tesco Superstores (455 stores), Tesco Metro (181 stores) , Tesco Express (1,130 stores), One Stop 513 (stores) and Tesco Homeplus (13 stores). There are currently about 2,400 Tesco stores worldwide.

Other sites provided by Tesco are:

Banking. Products on offer include credit cards, loans, mortgages, savings accounts and several types of insurance, including car, home, life and travel.

Fuel. Petrol stations

Technika. That is a brand of electronic products produced for Tesco

Telecoms. Tesco operates mobile phone, home phone and broadband businesses

Tech Support. Tesco acquired a small I.T. support company called The PC Guys.

Garden centres

Tesco Club card

Is your organisation a member of an employers' organisation?

Yes (name) Confederation of British Industry (CBI) No _ read pp 150-152

List what services, if any, your company receives from an employers' organisation. If not a member how is it that your organisation can act independently without the services provided by employers' organisations?

TESCO is member of CBI because wants to contribute to CBI's efforts in order to "Create and sustain the conditions in which business in the UK can compete and prosper"

Other services:

Consultancy and Advise on health and safety, legal matters, disciplinary, equal opportunities and pay, recruitment and partnership matters, organizational, industrial and technological change.

Training courses

Lobby government both nationally and locally

Advise and representation in relation to employment tribunal cases

Does your organisation recognise a trade union?

Yes: name(s) USDAW, TGWU Number of members USDAW 383,000 members nationwide, TGWU two million members nationwide , Member of TUC? Yes

If yes, what types of agreements do they have recognition over? read pp 154-59

If no, how are such issue raised in the pages determined in your place of work?

The Tesco/Usdaw Partnership is the biggest single trade union agreement in the private sector.

The key sections of the agreement are:

Detailed role descriptions for every kind of rep, spelling out what the job entails, and clear for all to see.

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Comprehensive training provisions to make sure the right skills and knowledge are delivered.

Activity planners so that reps can see how and when things happen.

Time out arrangements, so that reps can meet together, share views and team build.

Lately Tesco/Usdaw Partnership further developed, to include:

Nearly 800 reps out of every single store, as opposed to just 104 previously - an increase of nearly 700 reps.

A rep from every SD Group - 37 people and growing - to an expanded National Forum nearly four times larger.

More involvement in more issues across a wider agenda and in more numbers.

Guaranteed, structured access to every single induction in every single store every time.

Reps' team meetings in every store for two hours in paid time every month - with the exception of December.

Reps out of store to meet on an Usdaw divisional basis four times a year.

Brand new Usdaw Recruitment and Development reps, one from each SD Group, nearly 40 people released for 12 weeks a year.

Role descriptions for all reps, agreed with Tesco and plain to see for every manager and rep in every store.

Detailed and comprehensive training provision for all reps, delivered by both Tesco and Usdaw and - again - plain to see for every manager and rep in every store.

Agreed time out for reps to take part effectively, not only in the partnership structures but also in Usdaw's own structures like the ADM and divisional conferences.

How does the organization seek to engage or involve its employees? read pp 258-63

TESCO uses training to involve people into organisational life, in order to achieve greater dedication and therefore get the best performance from the employees. Tesco's long term strategy is to to place value on employee training and to integrate this value into the culture of the organisation. The entire organisation is involved in training. This training is offered at all levels within the organisation. Employees have control on their training after the initial induction process. This allows employees control of their career path, with the choice of whether they want to move up the ladder or not. So TESCO considers training as a strategic advantage and the way to motivate and involve its employees.

Has the organisation experienced any form of collective industrial action in recent times? Yes √ No____ read pp 231-36

If yes, give details of problem and solution

If no, list areas of any individual forms of conflict that are identifiable

Threat of Industrial action in 19 Tesco stores throughout Ireland (June 2009).

The union claims that the dispute is based around the company breaching an existing agreement with Mandate regarding reduction of workers hours. Mandate Assistant General Secretary, Linda Tanham said, "Some of our members are losing out on over €100 per week due to unreasonable and unnecessary cutbacks in working hours and it should be remembered that some of these are already low paid workers.

Tesco's case is that due to changing economic circumstances it could not guarantee that all workers could not retain their existing terms and conditions, but argues that it made a generous compensation offer to those affected.

The employees voted on the 18th of June to go on strike. The case was referred to the Labour Relations Commission and to a Labour court for a Solution. Tesco made a "substantial pay offer", but the unions rejected the offer. Industrial action was suspended. The case continuous.

Also in 2007 Tesco lorry drivers went on strike over a new working terms and conditions deal, when Tesco revealed plans to move its depot from Livingston. The TGWU claimed the new contracts, meant losses to the drivers of between £3,000 and £6,000. Tesco rejected the claims. Most of the workers moving from Livingston warehouse to the new one signed up to the new terms and conditions.

Does your organisation attempt to gain higher productivity from employees via contingent pay? Yes√ No ____ read pp 322-9

If yes, give details and how it is measured

If no, give details of why such a policy is not pursued

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TESCO now runs three share schemes: 'Save As You Earn,' 'Buy As You Earn' and 'Shares in Success.' available to its employees.

The 'Save As You Earn' scheme is the longest-running scheme within Tesco. Employees can set aside between £10 and £250 a month from their salary to save for a period of three, five or seven years. This gives them a right at the end of the period to buy shares at the price set at the beginning of the period.. At the end of the period, employees can decide what to do with the money in their share save account.. A key element of these types of share save schemes is the lack of risk for the employee

The 'Buy As You Earn' scheme is more flexible but does not have the same guarantees as the 'Save As You Earn' scheme. With 'Buy As You Earn,' employees can use between £5 and £110 of their gross earnings each month to buy Tesco shares at the current market price. As the money comes out of gross earnings, this means that employees save on tax and national insurance contributions.

The third scheme, 'Shares in Success' simply involves an allocation of free shares. The basic rules for this kind of scheme allow Tesco to give employees up to £3,000 worth of shares, free of tax and national insurance contributions. The shares can be awarded on the basis of individual, team, divisional or corporate performance.

What management style would you say is operating in your organisation? Justify your view. read pp 105-15

I would say Tesco has adopted a Management by Objectives (MBO) process, providing a clear way of defining roles, responsibilities and activities. The system guarantees that all employees are responsible, accountable, consulted and informed. So we can argue that Tesco operates a mix of Democratic and Paternalistic style o Management that includes techniques like "root cause analysis, problem solving, plan-do-review, situational leadership and coaching for high performance".

Does your organisation have a European Works Council or National Works Council (or something similar)? Yes ____ No ____ ­read pp 267-70

If yes, give details, e.g. who attends, agenda items. Compare its aims and/or processes to best practice defined by ACAS Advisory Booklet Employee Communications and Consultation

If no, why not?

Usdaw and Tesco have reached agreement in 2009 to set up a European Works Council to cover the retailer European business of the company.

Having Tesco expanded its European operations over the last few years it was felt that the time was right to create a forum that brings together staff from across its European Economic Area operations. formal discussions between the Company and representatives from across Europe before the end of the year, with a view to having the European Works Council in place during 2010.

John Hannett, Usdaw General Secretary said that this is a positive move for a progressive business and its social partners across Europe that will build on existing arrangements and enhance levels of information and consultation between staff and the business. On the other hand Ian Jefcoate, from Tesco International Personnel recognises that given scale of Tesco's operations in Europe it would be helpful to have a forum in which transnational issues can be discussed.

Both ACAS and the European Works Council aim to offer comprehensive advice on the employment issues and contribute in developing policies, procedures and good practices which will improve employment relations and effectiveness in the company. While ACAS helps with employment relations by supplying up-to-date information, independent advice and high quality training, and working with employers and employees to solve problems and improve performance in the UK, the European Works Council aims in offering the same things in Europe.