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TESCO Human Resource Management : Assignment
Added on -2019-09-16
This report focuses on the recruitment of international managers and other staff by using a series of processes like selection, recruitment, training, and reward management. We will cover "Human Resource Strategy of TESCO". This report proposes the entry of TESCO in Russia. HR recruitment has been detailed for the same. The key objective of this paper is to develop the most suitable HRM methodology for TESCO in the Russian market. Apart from this, you can also go through "A case study on Tesco" and where you will learn "Marketing Strategies of Tesco".
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ContentsExecutive Summary...............................................................................................................................2Introduction...........................................................................................................................................3Company Profile....................................................................................................................................5Parent Company................................................................................................................................5Host Company Profile.......................................................................................................................6Industry Drivers in Russia.....................................................................................................................6HRM Policies........................................................................................................................................8Recruitment and Selection.....................................................................................................................8Planning of workforce.......................................................................................................................9Recruiting strategy................................................................................................................................9Method of application and advertising.........................................................................................10Sources of recruitment.........................................................................................................................11Personal specifications........................................................................................................................12Training and Development..................................................................................................................13Identifying training needs....................................................................................................................14Reward Management...........................................................................................................................15Performance Management and Appraisal............................................................................................16Employee Involvement........................................................................................................................19Conclusion...........................................................................................................................................20Recommendations...............................................................................................................................20References...........................................................................................................................................221 | Page
Executive SummaryThis report focuses on the recruitment of international managers and other staff by using aseries of processes like selection, recruitment, training and reward management. The sectorthat has been chosen to conduct this research is the retail supermarkets. There are a numberof supermarkets in the UK like Sainsburys, TESCO, Aldi etc. A number of thesesupermarkets are planning to expand overseas. This calls for a need to select a series ofprocesses in order to recruit the staff in the location. This report proposes the entry ofTESCO in Russia. HR recruitment has been detailed for the same. The paper analyzesdifferent HR frameworks and particularly concentrates on the unique components of HRM inRussia that are particularly related to the features of the retail industry. The key objective ofthis paper is to develop the most suitable HRM methodology for TESCO in Russian market.TESCO represents the general retail supermarket industry here (World Bank, 2013).In order to get a close insight of the industry an examination of the economic and marketdrivers in the host country which is Russia. It is important to do so in order to identify theopportunities in terms of financial prospects and human resources. The report also studies thehierarchical issues that have an effect on the HRM techniques and finally suggests thatTESCO should enter the Russian retail sector by using joint venture business set up and alsoadopt a polycentric strategy of IHRM.. 2 | Page
IntroductionHuman resource is the most important asset of any business as no business can functionwithout a manual workforce. The recruitment and management of the human resource isaffected by a number of factors that include economic situation, globalization and the socialand cultural trends of the region where the company is operating. Hence the way HRM ismanaged differently from country to country.Due to the rise of globalization, the scope of human resource has changed recently. It is nomore a local concept and demands for the knowledge of international concepts and issues inorder to manage the human resources efficiently. The development of technology has madethe human resource more flexible by allowing the managers to control the situation withoutbeing physically present at work. Also,due to the rise in the trend of labor mobility, HRM hasbecome a wider concept.“Both demand and supply of labor is reshaped worldwide due toglobalization, creating intensified global competition among employers and employees in theglobal “war for talent”, and HR has to deal with this challenge”(Cairns, 2010). The rapid growth of multinational companies gave rise to the phenomenon of InternationalHuman Resource Management. The focus of Intenational Human Resource Management ison the different practices in different countries, so that they can manage the human resourcein the region accordingly.This paper focuses on the entry,selection and recruitment of UK’s top retailer TESCO inRussia. The report studies the key market forces in Russia and suggests TESCO on how todevelop the best HRM strategy on the Russian market, taking into account the marketdrivers and HR trends in the Russian market and of course the Russian culture as a whole.3 | Page
The proposed method of entry in this report is in the form of a joint venture with an existingretail supermarket business in Russia. This will help TESCO to use the knowledge andexperience of the local retail chain and hence, identify the key opportunities available andexploit them. Additionally, joint venture offers a very safe and flexible mode of entry forTESCO. This report suggests TESCO to join hands with DIXY, which is the fourth biggestretail chain in Russia. It was founded in 1992 and operates in the form of convenience storesand supermarkets (Ahmad, 2003).Talking about the social and cultural features of Russia, it is found that the workers in Russiaare way more educated, intellectual and talented than the human resource of the UnitedKingdom. Since the retail industry involves direct contact with the clients and customers,there is a growing need of qualified, courteous and customer oriented representatives.Additionally, the retail industry is also labor intensive where there is a constant need ofworkforce requirement almost 24 hours. This calls for the need of flexible labor that couldwork different shifts including day and night, (Tesco, 2015). HRM can be broadly categorized into two types, called Hard HR and Soft HR. In the “hardhrm” the employees are considered to be similar to any other business resource likemachinery or capital. Human resource is viewed as merely a resource to derive profit for thebusiness. The humanitarian aspect of the human resource is not given any importance whilepractising hard HRM. On the other hand, soft HRM considers human resource to be the mostimportant resource of the company. This approach includes emotional aspect while dealingwith human resource capital and focuses on the social and cultural areas. The cultureidentifies how an individual will react and respond to different situations (FECC, 2008).4 | Page
Hence depending upon the requirements and objectives of the company, and with reference tothe industry trends and local culture, 4 major HR strategies can be applied by an organization(Tayeb 2005):-Ethnocentric – The HR management style of the parent country is applied to the hostcountry-Polycentric – when local HR practices are used in the foreign market;-Global – when organizational culture is stronger than national cultures and is imposedall over the local branches;-Hybrid – when a different approach is applied for each particular case ofinternalization, depending on the particular host country conditions. Company ProfileParent CompanyTesco is an international grocery and general merchandising retailer group based in the UKconducting business operations in 4421 stores across 15 countries, employing 4,72,000people. Tesco is the biggest private sector employer in the United Kingdom, and is currentlythe fourth largest global retailer based on revenue and the third largest in terms of profitearning. Throughout the years the organization has been changed from a 'heap it high, offer itmodest' business sector broker to a world-driving retail aggregate. While it initially worked innourishment and beverage, it now offers an extensive variety of items including dress andpurchaser hardware and offers an expanding scope of administrations, for example, telecoms,wellbeing, Internet, protection and financial services. In addition to its stores, Tesco hascreated a very successful online supermarket offering among other things groceries, homeretailing, and music downloads. Even amidst the current global recession Tesco is performing5 | Page
extremely well with a 15.1% growth in annual sales and a 5.5% growth in profits(Anselmsson, 2007).Host Company ProfileThe suggested company to get into joint venture with in Russia is Dixy.The DIXY Group ofCompanies is one of Russia's driving retailers of foods and daily use products. Theorganization has practical experience in creating neighbourhood store supermarket inMoscow, St. Petersburg and three government regions of Russia: Central, Northwest andUrals furthermore in Kaliningrad locale, which together record for more than a large portionof the retail market for food and daily use items in the Russian Federation. (Dixy.com, 2015)DIXY's first store opened in Moscow in March 1999; in the meantime MEGAMART retaillocations started working in Yekaterinburg. The DIXY chain has been extending in St.Petersburg since 2000. DIXY is expanding its geographic vicinity rapidly, opening newstores in different locales of Russia. The organization is effectively creating distinctive storedesigns inside of the cutting edge general store group. Hence it is one of the bestorganizations to go into a joint venture in Russia (Boselie, 2001).Industry Drivers in RussiaRussia is a country with a population of around 144 million people. The country has hugepotential when it comes to the availability of human resources and market opportunities. Theretail industry in Russia is following an increasing growing trend right nows and is expectedto follow this increasing trend in the coming years as well. Russia has been identified as thelargest buyer oriented industry in the world. People constantly want to improve their standardof living whilst minimizing their spending. Hence, supermarkets have become a favorite6 | Page
Human Resource Strategy of TESCO
Human Resource Management is the most essential part of the organization, in light of the fact that no association can exist without a human workforce. The HRM strategy suggested discusses in detail all the aspects of recruitment and selection of the perfect candidate to reward management and retention of employees. This report states the current HRM practices of Tesco in the UK and suggests to what extent the same policies can be applied in Russia. The report suggests Tesco recruit local employees in Russia for posts like customer service assistant, baker, cleaners, etc while preserving more senior posts like store managers, logistics supervisors for expatriates from the UK owing to their critical role and previous knowledge of the business. The report also makes recommendations in the next section on how Tesco can recruit the best Human Resources in the host country. "SHRM for Tesco" is successfully examined.
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