Human Resource Management at Tesco

Explore the HRM practices at Tesco, focusing on recruitment, training, performance management, and employee relations. Understand the impact of external and internal factors on HR decisions and strategies.

Human Resource Management
1

Summary
This project report is based on Human resource management of Tesco which is multinational
grocery company in the United Kingdom. It is one of largest retailer company in all around the
world that provide good quality products and services to their foreign as well as domestic
customers.
2

Table of Contents
Summary........................................................................................................................................2
Introduction....................................................................................................................................4
LO1..................................................................................................................................................5
1.1 Give a brief introduction to your chosen organisation, including a definition of HRM
(P1.1)...........................................................................................................................................5
1.2 Discuss the type of approach undertaken by your organisation, such as: ‘Best fit'
versus ‘Best practice'; hard and soft models (P1.2)................................................................6
1.3 Undertake external analysis using a PESTLE in order to seek the type of labor
market the organisation exists in their labor markets trends (P1.3)....................................8
1.4 Undertake internal analysis in order to confirm the internal labour market, with
consideration given to turnover, stability, and retention. (P1.4, M1)...................................9
1.5 Critically evaluate the strengths and weaknesses of the organisation's recruitment
process, such as internal versus external recruitment, their use of job description,
personal specification and competency frameworks (P1.5, D1)..........................................10
1.6 Evaluate the strengths and weaknesses of the organisation's main method of
selection. Here you may want to consider key criteria for gaining a position such as
grading grids (P1.6, M2).........................................................................................................11
LO2............................................................................................................................................12
2.1 identify and explain the benefits of the organisation's development and training plan,
including how HR differentiates to suit different people/roles training needs. Also discuss
3

how HR evaluates the success/failure of their implemented training methods (P2.1, M3)
...................................................................................................................................................12
2.2 Discuss methods of reward management such as extrinsic and intrinsic rewards from
the employer. Here you are required to link them to the type of motivational theory and
reward implemented within the organisation (P2.2)............................................................13
2.3 Critically evaluate the benefits to the employee of any success/failure of the
organisation to offer flexible working practices in regard to financial gain, the
organisation's structural design and any functional flexibility which may exist (P2.3, D2)
...................................................................................................................................................14
2.4 Discuss the organisation's use of performance management, including monitoring of
achievements through models such as key performance indicators and the reward system
in place (P2.4)...........................................................................................................................15
LO3................................................................................................................................................16
3.1 Evaluate how the organisation maintains good employee relations and engagement
and any strategies they have in place for continuous improvement, with consideration to
employment law such as equality, data protection, health and safety, redundancy,
dismissal, and employment contracts (P3.1 M4)...................................................................16
3.2 Explain whether the organisation considered ethical and social responsibilities and
how this impacts on HRM (P3.2)............................................................................................17
3.3 Critically analyse the role of trade unions and any workplace representatives at both
local and national level and how they impact upon the actions of HRM within the
organisation (P3.3, D3)............................................................................................................18
LO4................................................................................................................................................19
4.1 Using example of organisational practices, discuss issues which arise in the
organisation when new employees undertake induction and socialisation. (P7)...............19
4

M5 Provide rationale for how such issues can be effectively addressed.............................20
Conclusion....................................................................................................................................21
References.....................................................................................................................................22
5

Introduction
Human resource is a most important department of the company as it assists in accomplishing set
target and objectives in most effective and suitable manner. Every company needs to give full
attention to human resource management because this department help to retain employees with
the association for the long time period. HR manager operates so many practices within the
organisation such as recruitment, training, selection, development, planning and much more
through which employee’s efficiency level increase. In today’s time, it is very important for the
business organisation to recruit highly skilled and talented employees who can perform in an
effective way. This project report is based on Tesco which is largest retailer company in the UK.
Various scopes, as well as the purpose of HRM department, has been discussed in this report.
Also, demonstrated internal and external factors that can influence the decision-making process
of HRM and apply some HRM activities in the context of Tesco.
6

LO1
1.1 Give a brief introduction to your chosen organisation, including a definition of HRM
(P1.1)
Human resource management is one which operates selection, recruitment, training, and
development for better running of the organisation.
Tesco is one of most reputed as well as the largest company that provides books, electronics,
toys, software, petrol, clothing, furniture and many more services to its customers (Akrani,
2011). There are around 476,000 employees who assist the organisation to deliver high-quality
goods and services to satisfy needs of its customers. This company wants to increase its market
presence by covering large market share at a global scale. Tesco has main objectives to satisfy
demands and wants of its customers by giving them high-quality products and services at
reasonable prices. Tesco retains its highly skilled employees as well as also maintain a healthy
relationship with its employees to achieve high growth (Akrani, 2011).
It is one of the most successful brands in all around the world because it gives high focus to its
human resource management who aid in accomplishing set target in the certain time period. This
company divides its business practices into different departments for attaining the better result.
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1.2 Discuss the type of approach undertaken by your organisation, such as: ‘Best fit' versus
‘Best practice'; hard and soft models (P1.2)
There are so many different approaches to human resource management that assist Tesco in
achieving organisational goals and objectives (Armstrong and Taylor, 2014). Best practice and
best fit are some of most essential approaches to HRM which help in operating business
practices in a well-planned manner. Both the approaches are completely different from each
other that are explained as under:
Best Fit Best practice
 The company should relate its
objectives to a reward system for motivating
employees. This approach gives high focus to
its reward process.
 With the help of this approach, the
company can gain huge competitive benefits
at global scale.
 As per this approach, the company
should include strategy as well as reward plan
in its HR policies to attain the better result.
 In this method, HR manager uses so
many methods and do commitments to his
employees for encouraging and motivating
them towards goals.
Hence, all the above-mentioned approaches are beneficial to HRM in operating business
practices which are successfully implemented by Tesco.
Apart from this, there are several models of HR such as hard and soft that is used to attain the
desired target. Both models are explained as under:
Soft HRM: In this model, the company gives high focus to its employees needs to satisfy them
and top manager provide a good working environment to them so that they can make more
efforts to achieve organisational goals and objectives (Armstrong and Taylor, 2014).
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Hard HRM: In this model, top managers do not make any communication with their
subordinates that is why this model is considered as less effective in management. Organisation
appraises or promotes its staff member according to their behaviour instead of efforts.
9

1.3 Undertake external analysis using a PESTLE in order to seek the type of labor market
the organisation exists in their labor markets trends (P1.3)
Pestle analysis:
Political Change in EU initiatives, transport policy,
Immigration policies related to labour
‘migrants’ etc. affect the labour market and
organisation profitability.
Economic Increasing rate of competition, economic
crises, emerging economies impact the labour
market because of this reason finance of
company get affected.
Social Ageing of Society, Continuous demographic
change impact on the workforce that affect
labour market of the country.
Technological New technology and advance devices lead to
new demand for the task, high skills
employees and business reallocation. The
company require new workers who have high
skills and ability.
Legal Changes in legislation, policies, labour market
entry, internal market rules and changes in
environmental protection regulation affect the
labour market condition.
Environmental Increasing rate of sustainability in the
economy, environmental laws, regulation
related to particular material impact workflow
of company and labour market condition
(Alfes, et. al., 2013).
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1.4 Undertake internal analysis in order to confirm the internal labour market, with
consideration given to turnover, stability, and retention. (P1.4, M1)
SWOT Analysis:
Strengths:
Greater global presence
Strong portfolio strategy
Good online operations
Weakness:
Reduce employees morale
Low financial performance
Opportunities:
Enhance market share through effective
strategy
Business expansion by using high technology
Threats:
Fluctuation in currency
Inability of leadership
By taking help of SWOT Analysis Company can evaluate internal labour market by analysing
stability, retention and turnover of the employees. HR manager should analyse a total number of
workers in the company for analysing labour turnover effectively, by doing swot analysis of the
Tesco. Competition arises in the internal labour market from current practices in the form of
promotion as well as job payment (Van Aken and Berends, 2017).
The organisation should make efforts to retain highly skilled employees at the workplace by
satisfying their needs and demands. The company can also determine total labour turnover by
taking help of terminated employee’s rate. Every company treats human resources as assets
because they control and manage entire management function. Internal analysis assists company
to evaluate the current condition of retention, stability and turnover of employees, so that
manager can take corrective action accordingly. The organisation labour’s allocation and pricing
are governed by specific administrative rules and procedures in the internal labour market.
Hence, it is highly essential for HR managers to do an internal analysis to identify current
turnover, stability and retain of the company. Tesco uses various regulatory and legal
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frameworks while developing any strategy or policy for retaining employees with the
association, otherwise, the company can suffer from financial loss (Van Aken and Berends,
2017).
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1.5 Critically evaluate the strengths and weaknesses of the organisation's recruitment
process, such as internal versus external recruitment, their use of job description, personal
specification and competency frameworks (P1.5, D1)
According to Myers (2013), the business organisation can attain high growth and development at
the global level by hiring high skilled and talented employees for the company. Recruitment and
selection process is considered as a most important process of the company.
Strengths: In the recruitment process, a huge number of applicants is attracted that is why it is
known as positive process whereas, in the internal process of recruitment company hire
employees from its existing staff member who already know everything about the workplace.
Weakness: Company needs huge capital for recruiting people from external sources which are
the biggest weakness of this method. It is very expensive as well as a time-consuming method of
recruitment. The company did not get high innovative new employees for the organisation
through internal recruitment.
.
(Figure 1: Selection and recruitment approaches)
(Source: Akrani, 2011)
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HR uses various approaches for recruiting employees through external as well as the internal
source. Through an external source, the company can easily access competencies and personal
details. By conducting an interview, screening etc. manager needs to evaluate their personal
details, job description, qualification, knowledge and many more. While in internal source
organisation hire people from inside the company but there is an only limited number of required
people available.
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1.6 Evaluate the strengths and weaknesses of the organisation's main method of selection.
Here you may want to consider key criteria for gaining a position such as grading grids
(P1.6, M2)
Tesco chose right and suitable candidate for vacant job position from among available candidate
is known as a selection process. The selection process mainly depends on the aims and objectives
of the company. There are various methods through which company selection experienced,
qualified and required the employee to attain desired goals and objectives. For selecting
employees for any vacant position, this company takes help of external source. The company
gets a large pool of candidate in this approaches from which it selects best. Tesco selects most
talented and qualifies employees for its business practices as per job demand by using selection
method. The external source consumes a huge amount of capital and time for interview rounds
and job advertisement which is biggest disadvantages of this method.
Tesco is one of the leading as well as popular retailer company that give core attention to its
human resource management (Bhorat, et. al., 2013). This company select right candidate for
vacant position through interview, presentation, ability and aptitude test, group exercise and
many more.
Strengths and weaknesses of methods of selection which areas used by Tesco company to select
right candidate:
Screening Interview: It is first interview process in which manager of Tesco conducts interview
process over the phone or an individual.
Strengths: By taking an interview over Phone Company save its cost and time which is biggest
strength of this method. The interview can be done fast in this process of selection.
Weaknesses: In this selection process, manager cannot see body language of the candidate
which is one of biggest weakest point of this method.
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LO2
2.1 Identify and explain the benefits of the organisation's development and training plan,
including how HR differentiates to suit different people/roles training needs. Also discuss
how HR evaluates the success/failure of their implemented training methods (P2.1, M3)
Every business organisation gives high focus on their training and development programs for
enhancing existing skills and abilities of employees (Tewart, 2013). Tesco gains huge
competitive advantages by providing training and development programs to its employees.
Benefits of development and training plan are as follows:
 Level of productivity and profitability increase
 Improve quality of goods and services
 Reduce operational cost
For changing business environment, the company needs proper development as well as a training
program. The company require employee’s training and development plan for major and minor
changes in business practices. The business organisation cannot implement any new changes in
the workplace without developing any training programs. Tesco uses various methods such as on
the job as well off the job method for enhancing employee’s skills (Tewart, 2013). By evaluating
employee’s performance, the satisfaction level of customers and increasing financial graph, the
company can easily determine failure and success of its implemented methods of training.
16

2.2 Discuss methods of reward management such as extrinsic and intrinsic rewards from
the employer. Here you are required to link them to the type of motivational theory and
reward implemented within the organisation (P2.2)
The company should give incentive and rewards to their employees for motivating and
encouraging them towards goals and objectives (Fang, et. al., 2013). Employees will contribute
more to achieve set target if they get suitable rewards in return for their work. Intrinsic as well as
extrinsic are two methods of reward management. If company provide tangible rewards to their
employees such as extra pay, bonus, etc. it is considered as extrinsic rewards. If a company
provides intangible rewards such as positive appraisal, promotion, etc. to their employees, then it
is considered as intrinsic. Employees will perform well in their practices if the company will
provide effective reward plan. There are so many motivational theories such as Herzberg two
factor theory and Maslow hierarchy need a theory that can be used by the business organisation
to motivate their employees towards goals and objectives. According to Maslow theory, the
company can motive its employees to fulfil their basic need. Whereas, Herzberg two factor
theory give importance to motivation and hygiene factors. Tesco motivates its employees by
providing good reward system (Fang, et. al., 2013).
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2.3 Critically evaluate the benefits to the employee of any success/failure of the organisation
to offer flexible working practices in regard to financial gain, the organisation's structural
design and any functional flexibility which may exist (P2.3, D2)
According to Agwu (2013), every Company should follow flexibility in the organisational
structure for surviving in the global market for the long time period. Business can easily cope up
with the current requirement of the market if it has a flexible structure. There are various kinds of
flexibility which are as under:
Structural flexibility: This type of organisational flexibility company can easily make changes
in their whole structure.
Numerical flexibility: Flexible working environment assists the company in cooperating with
various environmental changes quickly.
Functional flexibility: Employees can easily operate new practices and task of business in an
easy way if the company have the flexible working environment.
Hence, it can be said that Tesco improves its financial outcomes by making organisation
structure more flexible that assist in implementing major changes in business practices. Failure,
as well as the success of the company, totally depends on the organisational structure. The
company cannot survive in the marketplace for a long time period if it has complex
organisational structure but if it is flexible then the company can easily cope up with
environmental changes.
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2.4 Discuss the organisation's use of performance management, including monitoring of
achievements through models such as key performance indicators and the reward system
in place (P2.4)
The company can easily identify its current working performance of its staff member with the
help of performance management concept so that suitable steps can be taken for improvement
(Parmenter, 2015).
Tesco uses various methods to monitor its employee’s performance. These methods are
discussed below:
 Top authority can easily analyse the performance of their employees by watching their
activities.
 The supervisor can see how employees are operating different business practices and how
much efforts they put for accomplishing desired objectives.
 By analysing profitability and productivity, the company can determine the performance
of employees.
Performance indicators: The company can analyze its current working performance by using
several key performance indicators such as sales, cost, profit, revenue and many more.
Reward system: The company can encourage and motivate its employees by providing them
intrinsic and extrinsic reward system that helps in increasing their performance. This will also
assist the company to attain its desired set target in the certain time period (Parmenter, 2015).
19

LO3
3.1 Evaluate how the organisation maintains good employee relations and engagement and
any strategies they have in place for continuous improvement, with consideration to
employment law such as equality, data protection, health and safety, redundancy,
dismissal, and employment contracts (P3.1 M4)
There are various rules, policies and regulations are made by HR department of TESCO to
protect and secure the interest of employees. Tesco follows various employment laws which are
defined as under:
Data protection act 1995: According to this act, it is major responsibility of company to protect
and secure personal data of employees.
Employment contracts: This act used by Tesco Company in labour law to attribute
responsibilities as well as rights between different parties to a bargain. In this contract is made by
company between employees and the employer.
Dismissal act: This act stated that company cannot dismiss employees from organisation without
having good reason to dismissing them. The company considers employees as a most important
asset of the organisation that helps in achieving high growth and development (Austin, 2013).
The company cannot survive in the marketplace for a long time period without satisfying their
needs. Tesco does not dismiss its employees without any valid reason which create greater brand
image at global scale because it respects its employees and also follows regulatory and legal
framework
Health and safety act, 1992: According to this law, the company should provide secure and safe
working environment for their employees and proper training should be given to using dangerous
equipment (Thepaksorn, et. al., 2017).
Equality act, 2010: This act states that company should prompt and protect employee’s interest
for providing them various facilities that they want.
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3.2 Explain whether the organisation considered ethical and social responsibilities and how
this impacts on HRM (P3.2)
Tesco has a good brand image and goodwill in the global market because it operates social
responsibilities (Lapiņa, et. al., 2014). This company operates its business practices in an ethical
manner without harming society. Tesco follows various regulatory and legal frameworks to
provide secure and safe working environment to its workers. The company considers employees
demand and want while taking any important decision.
Tesco uses the ethical code of conduct while performing any operational activity and contribute
so much towards employee’s welfare. This will influence positive impact on both organisation
and human resource management department. Ethical way assists in creating good brand image
among its customers and employees.
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3.3 Critically evaluate the role of trade unions and any workplace representatives at both
local and national level and how they impact upon the actions of HRM within the
organisation (P3.3, D3)
According to Alfes, et. al., (2013), needs and demand of employees represented by a trade union
in front of high-level authority. Trade unions have made several changes in the business
environment such as equality legislation, minimum wage implemented and many more. Trade
union develops so fast as it stops illegal and unfair activities of employers.
Role of trade unions at local level:
 It helps in making a balance between the professional and personal lives of workers.
 The trade union has made the various function of HR easier by giving full attention to
employee’s welfare.
 Tesco work according to its trade union which helps in provides higher satisfaction level
to its workers.
Role of Trade union at the national level:
 Also, help in improving employee’s standard of living.
 It creates several agreements such as bargaining and negotiation. Trade unions have
issued various agreements like negotiation and bargaining.
 Trade union represent employee’s interest at national level to secure and protect
employee’s right (Alfes, et. al., 2013).
.
22

LO4
4.1 Using example of organisational practices, discuss issues which arise in the organisation
when new employees undertake induction and socialisation. (P7)
Tesco hires so many new employees to perform its business practice in a well-planned manner.
For make them familiar with other employees company conduct induction and socialisation
program. Induction is a concept that starts with selection and recruitment process (Arachchige,
2014). In this newly appointed employee interact with existing staff members of the company so
that they can feel familiar. Whereas, socialisation process assist the business organisation in
managing an existing culture of the company.
There are several issues with socialisation and induction that can create a problem for
workers are defined as below:
 Lots of information can overload employees.
 The untrained manager can create the biggest problem as incomplete knowledge can
transfer wrong knowledge to workers.
 In socialisation, the candidate faces completely new working culture.
 Change in technology creates struggle among employees as they are unable to cope up
with advanced technology (Arachchige, 2014).
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M5 Provide rationale for how such issues can be effectively addressed.
In a business organisation, both socialisation and induction are considered as an essential process
as it assists in making new worker familiar with whole workplace (Arachchige, 2014). There are
so many problems with these concepts which can be removed from below-mentioned points.
 The company should select high level trained staff person who can provide appropriate
knowledge of business practices to employees.
 The company should not provide overload information and knowledge to their employees
at the same time.
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Conclusion
By evaluating above project report it has been concluded that human resource practices play a
very major role in growth and development of the company. HRM department assists Tesco in
selecting and recruiting highly skilled employees. HR manager provides various reward and
bonus system to his employees so that they can work more hard to increase profitability and
productivity. Tesco follows various employment laws such as dismissal, health and safety,
equality and much more for protecting employee’s interest. If the company will not follow such
kind of follow than it can suffer from financial penalties. Various practices of HRP such as
training, selection, planning, and recruitment provide huge benefits to organisation and
employees so it is highly important for the company to give high attention to HR department.
25

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