Role of Human Resource and Financial Management in TESCO

This report discusses the roles of HR and financial management in TESCO, a British multinational retailer. It covers the various functions of HR, such as attracting and selecting candidates, performance appraisals, compensation, and more. It also highlights the importance of financial management in bookkeeping, reporting, investment opportunities, risk assessment, and cost control.

Case study & Report

Table of Contents
INTRODUCTION ..........................................................................................................................1
MAIN BODY...................................................................................................................................1
Discussing the role of Human resource..................................................................................1
Discussing the role of Financial management........................................................................2
CONCLUSION................................................................................................................................2
REFERENCES ...............................................................................................................................3

INTRODUCTION
The human resource refers to the division of a business that is based on the finding,
screening as well as recruitment and training of job applicants. In addition to this, it focuses on
administering employees benefit programs and plays a vital role in helping an organization to
deal with dynamic business environment. For the following report TESCO has been taken into
consideration which is a British multinational groceries and general merchandise retailer
headquartered in Welwyn Garden City, England. The following report will highlight the role of
HR within an organization along with the role of financial management.
MAIN BODY
Discussing the role of Human resource.
There are various roles of HR within an organization that allow a business to ensure that
it is able to attract skilled and talented employees within the business. In addition to this, it
allows a business to ensure that it is able to maintain high level of performance through a
motivated workforce (McCartney, Murphy and Mccarthy., 2020). In context to TESCO, the HR
plays a vital role in proving the business with individuals who possess various skills that will
help the organization to achieve its set goals and objective in an optimal manner. Given below
are various roles of HR in context to TESCO:
Attracting candidates:
It is one of the primary duties of an HR to attract candidates in an effective manner. This
allows a business to ensure that it is able to attract talented as well as skilled employees in an
optimal manner which will enhance the operations of the business. In context to TESCO, the HR
allows the business to attract candidates through social media advertising which helps in
expanding its overall reach in the market for talented employees. In addition to this, the role of
HR helps the business to identify capable individuals for the job.
Selecting candidates:
The HR of an organization plays a vital role in selecting an appropriate candidates for the
organization who will be able to perform task in an efficient manner as well as avoid mistakes
that can lead to reduced productivity as well as performance of the business. In context to
TESCO, this role of the HR within the organization helps the business to only select appropriate
1

candidates for the organization. This helps the business to ensure that all their employees are
highly skilled as well as talented in fulfilling the requirement of a given task.
Performance appraisals:
It is the role of HR of a business to ensure that it is able to provide performance appraisal
to all its employees in order to ensure that it is able to provide high level of motivation. In
addition to this, it helps the business to have a positive workforce (Mothe and Nguyen-Thi.,
2021). In context to TESCO, this role of HR plays a vital role within the business as it helps the
HR to motive the employees in an optimal manner. This helps the business to enhance its
performance as well as productivity in the market.
Compensation:
The HR of an organization has the role of providing the employees with necessary
compensation if the employees are unable to work due to unforeseen circumstances. This helps
the business to keep the safety needs of the employee's met leading to higher motivation. In
context to TESCO, this role of HR helps the business to ensure that all their employee feel safe
within the organization and keep their motivation levels optimal. This helps the business to
develop a positive brand image as well as have a enhanced workforce.
Employee benefit management:
The HR of an organization has the role of providing benefits to its employees in order to
keep their performance levels optimal. This can include pension programs that motivate the
employees to work towards the set goals and objective of the business (Ranjhan and Mallick.,
2018). In context to TESCO, this role of HR within the organization helps the business to
provide various benefits to its employees in order to ensure they are satisfied. In addition to this,
it helps the business to develop positive relation with its employees resulting in enhanced
productivity.
Training and development:
It is the role of the HR within an organization to develop a training program that is well
structured as well as systematic in nature. This allows the business to ensure that all their
employees receive personal as well as professional development (Chaudhari, Nakhate and
Rautrao., 2020). In context to TESCO, the HR of the organization focuses on providing all its
employees with training and development programs in order to enhance their overall capabilities.
2

This helps the business to enhance the performance and productivity if both its employees as
well as the enterprise.
Promotions:
It is the role of HR within a business to evaluate the performance of each employee and
provide them with suitable promotions. This helps a business to ensurer that it is able to motivate
its employees in an optimal manner increasing their performance (Daniel., 2020). In context to
TESCO, the HR of the business plays a vital role in identifying suitable candidates within the
organization who can be promote to higher level of job position within the organisation. This
allows the business to introduce new talent within the organisation and promote experienced
employees to a higher job statues improving their motivation.
Problem solving:
There can be various conflicts within an organisation which can impact the overall
operations of the business in a negative manner. This reduces the capability of the business to
operate in the market and is the role of the HR to identify as well as solve conflicts in a timely
manner. In context to TESCO, the HR of the business is responsible for solving the conflicts
between employees as well as the management. The HR of the business is focused on
establishing a positive relations between the upper and lower management in order to ensure
smooth operations. This allows the business to maintain a high level of performance as well as
productivity.
Change management:
The HR of an organization has the role to manage the overall changes that are being
introduced within the business. This is a crucial role as it allows the HR to minimize the changes
of resistance to change by the employees. In context to TESCO, the HR of the organization plays
a crucial role when the changes are introduced within the organization. This allows the HR to
develop effective communication challenges which help in reducing the changes of resistance
from employees which impacts organizational performance.
Discussing the role of Financial management.
The financial management plays a main role relative to the planning, organizing as well
as the governance of all the financial activities within an organization. In addition to this it
consist of management ethics of financial resource of the business. In context to TESCO, the
financial management plays a vital role as it controls all the economic operations of the business
3

such as the utilization of funds, procurement of funds along with risk assessment. Given below
are the roles of financial management in context to TESCO:
Book keeping and Accounting:
It is an essential role of financial management to effectively identify as well as take
appropriate measures in order to record all the necessary financial detail of an organization. It
helps an organization to track all it funds in a structured and systemic manner as well as allows a
business to have optimal accounting systems (Bapat., 2020). In context to TESCO, the finical
management within the organization allows the business to have structured as well as systematic
data relative to its financial position. This helps the business to ensure that is it able to allocate its
financial resources in an optimal manner which will provide highest level of performance as well
as productivity. Furthermore, the business is able to develop suitable as well as appropriate
financial strategies in an effective manner that help the business to improve its financial position
relative to the market and gain higher level of completive advantage as well.
Reporting:
This is a vital role of financial management and focuses on the stakeholders of the
organization that is based on the financial statement of the business. This allow the stakeholder
of the organisation to take necessary steps relative to the development of the financial report. In
addition to this, it also allows a business to forecast as well as develop financial strategies based
on the reports that are developed. It is important for an organization to have accurate financial
reporting in order to take take suitable steps (Cuadrado-Ballesteros, Santis and Bisogno., 2021).
In context to TESCO, the financial management within the organization allows the business to
develop financial reports that can be presented to its various stakeholders. This helps the business
to display its financial position in the market and gain the opportunity to attract investors in an
optimal manner. In addition to this, it provides essential support to he business in evaluating its
financial position based on the report which helps in taking suitable steps.
Investment opportunities:
Through financial management an organization is able to identify opportunities that helps
in investing at the correct time. This allows the business to ensure that it is able to gain financial
advantage in the market in an optimal manner. Furthermore, the financial management allows the
business to attain financial statues which it can leverage in order to improve it financial positive
as well as performance in the market (Khan et. al., 2019). In context to TESCO, the concept of
4

financial management within the organization allow the major stakeholder of the organisation to
identify investment opportunities in an effective manner. It allows to identify elements such as
expansion of the business along with development of new products in order to increase
profitability of the business. This role of financial management allows the business to explore
various business expansion opportunities which will help in enhancing the brand image as well
as probability of the organization.
Risk assessment:
It is one of the most important role of financial management in order to ensure maximum
profits at minimum risk as well as liabilities. The financial management within an organization
allows the ability to access risk in a systematic manner. This helps in minimizing various
financial risk that can impact the operations of the business within the market (Bialowolski,
Cwynar and Weziak-Bialowolska., 2020). In context to TESCO, the financial management
within the organization has a vital role of identifying various risk that can have a negative
influence over its financial position. This is an crucial element of the financial management as it
allows the business to be proactive and identify the risk in a structured manner. This helps the
business to develop suitable financial strategies that will ensure that the business maintain a
higher level of market competitiveness and attain higher level of growth by negating financial
risks.
Control business cost:
It is one of the most important role of financial management as it allows the business to
have optimal control over the cost of operations. This helps the business to evaluate its position
within the market which is necessary to attain competitive advantage (Mądra-Sawicka., 2020). In
context to TESCO, the role of financial management helps the business to keep the cost of
operation relatively low as the business is able to allocate its financial resource in a systematic as
well as structured manner. This provide essential support to the business as it archive higher
level of growth in the market as well as is able to enhance its profitability.
CONCLUSION
From the above report it can be concluded that, it is crucial for an organization to have
effective HR operations within the organisation in order to ensure high level of performance as
well as productivity. It was concluded that HR plays various roles in helping the organization
attain skilled and talented employees. In addition to this, it supports employees by providing
5

them with various benefits. The report also concluded that, the financial management of a
business helps in understand the proper allocation of financial resource along with assistance is
assessing risk within the market.
6

REFERENCES
Books and Journals:
Bapat, D., 2020. Antecedents to responsible financial management behavior among young
adults: moderating role of financial risk tolerance. International Journal of Bank
Marketing.
Bialowolski, P., Cwynar, A. and Weziak-Bialowolska, D., 2020. Financial management, division
of financial management power and financial literacy in the family context–evidence from
relationship partner dyads. International Journal of Bank Marketing.
Chaudhari, C., Nakhate, V. and Rautrao, R. R., 2020. Role of HR trends in corona-crisis
management and organizational sustainability readiness. International Journal of
Advanced Science and Technology, pp.2278-2286.
Cuadrado-Ballesteros, B., Santis, S. and Bisogno, M., 2021. Public-sector financial management
and E-government: The role played by accounting systems. International Journal of
Public Administration, pp.1-15.
Daniel, T. A., 2020. Organizational Toxin Handlers: The Critical Role of HR, OD, and
Coaching Practitioners in Managing Toxic Workplace Situations. Springer Nature.
Khan et. al., 2019. Financial management of natural resource market: Long-run and inter-
temporal (forecast) relationship. Resources Policy, 63. p.101452.
Mądra-Sawicka, M., 2020. Financial management in the big data era. In Management in the Era
of Big Data: Issues and Challenges (pp. 71-81). CRC Press.
McCartney, S., Murphy, C. and Mccarthy, J., 2020. 21st century HR: a competency model for
the emerging role of HR Analysts. Personnel review.
Mothe, C. and Nguyen-Thi, T.U., 2021. Does age diversity boost technological innovation?
Exploring the moderating role of HR practices. European Management Journal, 39(6).
pp.829-843.
Ranjhan, S. and Mallick, E., 2018. Organizational citizenship behaviour creating competitive
advantage in Indian health care industry: The moderating role of HR practices. Global
Business Review, 19(5). pp.1275-1289.
7

8