This report discusses the challenges faced by Tesco in managing its human resources and highlights the robust and progressive HRM policies implemented by the company. It also explores the link between HRM and HR planning and recruitment. Recommendations are provided for effective HRM practices.
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HRM POLITICS IN TESCO
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TABLE OF CONTENT INTRODUCTION.................................................................................................................................3 MAIN BODY........................................................................................................................................3 Organisation background...................................................................................................................3 Human resource management challenges..........................................................................................4 Robust and progressive HRM policies...............................................................................................5 Link between HRM and HR planning and recruitment......................................................................7 Recommendations.............................................................................................................................7 CONCLUSION.....................................................................................................................................8 REFERENCES......................................................................................................................................9
INTRODUCTION Human resource management is defined as a process to monitor and control the human resources needs of the company. This report is based on the case study of Tesco Company in respect to management of human resources in the company. Tesco Company operates its business operations in retail sector. Henceforth, report will emphasis on the background overview of the chosen organisation. This report will also project all the challenges face by company in respect to managing its human resources needs. Aim of the report is also to project the robust and progressive HRM policies in respect to the company. Furthermore,report providebrief informationon differentaspectsof human resource management such as HR planning, recruitment and selection and other suitable details on the management of human resources in company. Recommendation will also summarise in this report. MAIN BODY Organisation background Tesco Company is a retail sector organisation based in United Kingdom. Company initiated its business operations in the year 1919. Jack Cohen is the founder of the Tesco Company. Headquarter of the company is located in Hertfordshire, England. Company operate its retail outlets in more than 6800 locations across the globe (Tang and et.al., 2018). On the basis of gross revenue Tesco Company is consisted as the third largest retail organisation across the globe. The name of the company was first appeared in the year 1924 after the founder of company Jack Cohen purchased shipment of tea from T. E. Stockwell. Funder of the Tesco Company inspired from the tea shipment name and put it as the name of the company call Tesco. Based on the records it is stated that the first store of Tesco Company was opened in the year 1931 in Burnt Oak, Burnet. The business of the company has grown very rapidly which further resulted into almost the 100 Tesco Stores by the end of the year 1939. After emerging as the leading retail organisation in United Kingdom company initiated its international expansion in the early 1990s by opening stores in 11 countries other than United Kingdom. Company is engaged in many products line that is further summarises into books, clothing, electronics, furniture, toys, petrol, software, financial services, telecoms and internet services. In the year 1990 company aimed to reposition its market image from the brand image of high volume low cost retailer. Company is a part of the London Stock Exchange and is also a part of the FTSE 250 Index.
Human resource management challenges Challenges associated with the Tesco Company in respect to managing human resources in company can be summarised in the following manners. Talent management challenge:Talent management has been among the key challenges face by Tesco Company in recent past years. Tesco Company is among the top brads across the globe in retail sector apart from that fact company has faced issues in term of talent management in the organisation. Huge competition in retail market has also increased the challenge of talent management for organisations. Due to leading brand in retail sector work load over the employees of company is also immense (Haddock-Millar, Sanyal and Müller- Camen, 2016). Employees in company demanded higher compensations and incentives, bonuses and other benefits due to high work pressure. This is among the primary challenge associatedwith talentmanagementin company.Talentbusinessis also tighteningas company need skilled work force for operating different functional activities in company. Employees of Tesco Company also filled like unappealing company culture which has also increased the challenge of talent management for the company. Employee turnover has also increased due to this that also further expanded the challenge of talent management in company. Employee retention challenge:Employee retention is also among the key challenges associated with the Tesco Company. Employee market is also become very competitive in today’s business environment as all organisations are looking for business expansion which drives to plenty of job opportunities to all big and small corporate. All employee competition has resulted into the fact employees in Tesco leaves the respective jobs (Ogunyomi and Bruning, 2016). Lowemployeeretentionsratealso causedthe companytosufferin implementing its functional activities. It is researched that plenty of reasons behind the low employee retention rate which can be summarises into salary dissatisfaction, high job opportunities, no job rotation, unrealistic employment expectations from the employer and hiring the wrong candidate. All the above aspects are among the key reasons behind the low employee retention rate in Tesco Company. Pay scale challenge:Pay scale is also among the key challenge associated with the human resource department of Tesco Company. Pay scale implied the salaries and employment benefitsofferstoemployeesincompany(Brunstein,2016).Duetohighemployee competition in market expectations of all employees are high in relation to pay scale and
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other employment benefits. To cope up with the expectations of employee becomes huge challenge for the human resource management of companies. It also includes the effective salary hikes each year of all existing employees in company. Salary hike is seen as the extra burden every year over the organisation financial resources. To offer effective salary hike is the key challenge face by human resource department of Tesco Company. Sustainability:Along with all other challenges associated with the management of human resources in Tesco Company sustainability is also the key challenge company is engaged with. Sustainability is seen as how long the employees of company are a part of the organisation. High competition in the employee market has also influenced negatively to the sustainability of the employees in Tesco Company. All the above challenges are among the key challenges face by human resource management of the Tesco Company. Robust and progressive HRM policies Robust and progressive HRM policies are defined as building an effective work culture in the company that are also reflected as employee oriented. Progressive and Robust policiesfocusesoncontinuousdevelopmentofhumanresourcesassociatedwiththe organisation. Following polices are adopted by the Tesco Company with the support of is human resources department as a part of progressive HRM approach. Employee development program:Human resource management of the Tesco Company run different employee development program as a part of the progressive HRM policy. Human resource department conducts different trainings and skill development programs to enhance the capabilities and potential abilities of employees. Company aims to improve the growth potential of employees with the support of all the skill improvement activities (Meijerink and et.al., 2018). All such campaigns enable employees to achieve better growth potentials not just internally in the hierarchy of the Tesco Company but also externally as well. It also improves the employee well being in respect to the organisation. Such programs also create positive impacts on the employee satisfaction in respect to the employment policies of company.Alltheemployeedevelopmentprogramsdirectlyimpactonthepotential capabilities of employees which also resulted into improved profitability of the organisation. Equal Opportunity:Human resource department of the Tesco Company follow the policy to caterequalgrowthopportunitytoallemployeesofemployeesirrespectivetoany
discrimination.Thisisaneffectiveapproachofhumanresourcemanagementofthe organisation. It also improves the organisation culture of Tesco Company (Murphy, Klotz and Kreiner, 2017). This is an important aspect of progressive HRM approach follow by company. Due to this approach working environment in Tesco Company has also becomes positive. Employees become keener towards putting quality efforts to meet the positional requirements. Gender Positivity:Gender positivity is also a part of the progressive HRM approaches follow by the Tesco Company. Human resource management aims to recruit the best potential candidates at different designated roles in company irrespective to any gender, cast or category of the candidate (Andersén, 2019). Gender positivity indicates that company is positive enough to recruit all employees on the basis of the potential and abilities irrespective to the gender. This is a positive HRM approach apply in Tesco Company which also resulted into more effective organisation culture of the company. Company also maintain gender positivity at the time of promoting employees for the higher designated roles in the organisation. All employees are promoted in company on the basis of productivity and capabilities irrespective to any gender. Equal pay scale:Equal pay scale is also a part of the human resource management approach follow in the Tesco Company. Human resource management offers same pay scale to all employeesdesignatedat similarpositionon thebasisof employmentconditions. All employees gets equal treatment in respect to pay scale and employment benefits offer by company (Kim and et.al., 2019). Equal pay scale is also implemented in case of any promotions entertained by company. All employees of company get equal salary hike and benefits in case of promotions irrespective to any gender or any discrimination. This is an effective progressive or robust approach of human resource management. Due to this approach company could develop an effective work culture at the organisation. This also improves the employee motivation level from operation practices. Employees drive to put extra efforts in order to get promotions and other benefits as a result of the productive works. All the above points indicate about the progressive and robust HRM approaches follow by Tesco Company.
Link between HRM and HR planning and recruitment The human resource department is responsible to get in the right employees in the organization so that there is an effective functioning. Tesco has been in loss which is why the wages and rewards of the employees have reduced which resulted in high labour turnover in the organization. The human resource has to get a skilled and experience workforce in the organization again so that there is a better functioning which is going to help the organization have a better functioning. It is the human resource department who informs the management as to how many employees are required in the organization so that there is a better functioning in the organization. The employees which are coming in the organization must have the basic knowledge of the organization so that they can function effectively. The gap is fulfilled between the employees and the management of Tesco is by the human resource department so that the organization is not having any communication gap between them so that the organization can continue to have a strong operation in the market. The organization will have to get a strong human resource department also so that they can not just understand the functioning but also help in the decision making for the future growth of the organization. There are a lot of methods and techniques which are used by the human resource department in Tesco to get the right candidate in the organization. There is a requirement of getting in new employees who are going to help the organization come up with unique and different ideas for the growth of Tesco in the market. The competitors in the market are increasing which is why there have to be generation of new ideas in Tesco so that there is a better functioning. There is a strong reputation of the organization in the market which has to be maintained by the human resource department in the market so that there is a better functioning (Haddock-Millar, Sanyal and Müller-Camen, 2016). Tesco can not afford to get in extra employees in the organization because they are not having a good economic control in the organization as of now which has to be well maintained by the organization in the future. The competition is increasing for Tesco which is why the organization will have to make better decisions and other strategies must be applied by human resource to not just motivate the employees in the organization but also get in the right candidates which match the standards of the organization. The management will have to make the human resource that their work from time to time so that there is a better functioning and the organization will be able function effectively.
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Recommendations Top-level management of the Tesco should give special inductions to its HRM human resource management to use or employ modern strategies and techniques within their daily HRM practices. It is too necessary for the company to always gain an effective workforce within the business environment. Currently Tesco’s major competitors also focuses on run the irrespective HRM on progressive path (Blom and et.al., 2020). There is HR department of the company is only source to it for improving existing performance of different employees win the workplace. That’s why Tesco’s upper management has highly required running it’s all HRM functions effectively. Otherwise, this retail company can’t get positive results within the international retail industry. On the other side, HR manager of company is responsible to give higher priority to only those candidates in its hiring processes who have extra-ordinary talent and skills (Ogunyomi and Bruning, 2016). Top-level management is responsible to hire skilled and talented employees for its HR department as well. There are HRM practices are not a small task to the Tesco, because this company is one of the leading companies in within UK’s retail industry. In this situation, Tesco has large number of employees also who always day on night in the company’s different stores and supermarkets. That’s why existing management of company has highly re4suired to properly maintain performance of all employees. Currently Tesco’s major competitors are giving it very tough competition in the UK’s retail industry. In this situation, HRM of the company is highly needs to be more active in its existing job role. HR manager of the company can improve or develop various skills and competencies of their all employees in the workplace. Reason is, when company has highly skilledandtalentedemployeesintheirbusinessenvironment,andthenit’sallover performance will be automatically improved in the market (Meenaand Vanka, 2017). At the end, Tesco will be able to gain huge competitive advantage within UK’s retail industry within the support of its skilled and employees. On the other side, human resource management of company is responsible to adhere and follow all legal and ethical considerations which the local government has passed in employee or labour welfare. For example; HRM should make its policies and planning on the basis of employment la. When hand resource manager will properly follow all legislation in its workplace, then this step of the HR management promotes an ethical environment within Tesco.
CONCLUSION It can be concluded that existing HR manager of the Tesco is properly running it’s all HR operations, but manager still has required to be more active in ins existing job role. HRM of the company still uses different traditional techniques within its various HRM practices, in which HRM manager is responsible to employ or implement latest and modern techniques within its daily practices. HRM at Tesco should always run different training sessions in their workplace which can give opportunity to an employee for improving its productivity in daily operationsofcompany.Byimplantingmoderntechniqueswithinhumanresource management, HR manager will be able to run it’s all HR practices on progressive path.
REFERENCES Books and Journals Andersén,J.,2019.Resourceorchestrationoffirm-specifichumancapitalandfirm performance—theroleofcollaborativehumanresourcemanagementand entrepreneurialorientation.TheInternationalJournalofHumanResource Management. pp.1-33. Blom, R., and et.al., 2020. One HRM fits all? A meta-analysis of the effects of HRM practices in the public, semipublic, and private sector.Review of Public Personnel Administration.40(1). pp.3-35. Brunstein, I. ed., 2016.Human resource management in Western Europe(Vol. 68). Walter de Gruyter GmbH & Co KG. Haddock-Millar,J.,Sanyal,C.andMüller-Camen,M.,2016.Greenhumanresource management: a comparative qualitative case study of a United States multinational corporation.The International Journal of Human Resource Management.27(2). pp.192-211. Kim, Y. J. and et.al., 2019. The effect of green human resource management on hotel employees’eco-friendlybehaviorand environmentalperformance.International Journal of Hospitality Management.76. pp.83-93. Meena, K. and Vanka, S., 2017. Developing an empirical typology of diversity-oriented human resource management practices.Journal of Management Development. Meijerink, J. and et.al., 2018. Special issue of the International Journal of Human Resource Management:Digitizationandthetransformationofhumanresource management.The International Journal of Human Resource Management. pp.1-6. Murphy, C., Klotz, A. C. and Kreiner, G. E., 2017. Blue skies and black boxes: The promise (and practice) of grounded theory in human resource management research.Human Resource Management Review.27(2). pp.291-305. Ogunyomi, P. and Bruning, N. S., 2016. Human resource management and organizational performance of small and medium enterprises (SMEs) in Nigeria.The International Journal of Human Resource Management.27(6). pp.612-634. Tang, G. and et.al., 2018. Green human resource management practices: scale development and validity.Asia Pacific Journal of Human Resources.56(1). pp.31-55.