Detailed Report: Human Resource Management Practices at Tesco PLC

This report provides a comprehensive analysis of Human Resource Management (HRM) practices at Tesco PLC. It begins by differentiating between personnel management and HRM, highlighting Tesco's approach. The report then delves into the specific roles and responsibilities of HR managers, including recruitment, selection, training, compensation, and benefits. It also examines the crucial duties of line managers in overseeing employee performance and contributing to the overall HRM strategy. The report further explores the legal and regulatory framework impacting HRM, such as the Equality Act, Minimum Wages Act, and Health and Safety Act, emphasizing their significance in protecting employee rights and ensuring compliance. Additionally, the report discusses the importance of HR planning and its role in aligning human resources with business strategies. Finally, it explores the link between motivational theory and reward systems within Tesco, providing a holistic view of HRM within the company.

HUMAN RESOURCE
MANAGEMENT

TABLE OF CONTENTS
INTRODUCTION................................................................................................................................4
TASK 1.................................................................................................................................................4
1.1.....................................................................................................................................................4
1.2.....................................................................................................................................................5
1.4.....................................................................................................................................................8
TASK 2.................................................................................................................................................9
2.1.....................................................................................................................................................9
2.2...................................................................................................................................................10
2.3...................................................................................................................................................11
2.4...................................................................................................................................................12
TASK 3...............................................................................................................................................12
3.1...................................................................................................................................................12
3.2...................................................................................................................................................13
3.3...................................................................................................................................................14
3.4...................................................................................................................................................14
TASK 4...............................................................................................................................................15
4.1...................................................................................................................................................15
4.2...................................................................................................................................................16
4.3...................................................................................................................................................17
CONCLUSION..................................................................................................................................18
REFERENCES...................................................................................................................................19

INTRODUCTION
With concern to the modern view, concept of human resource management refers to manage
5M's, that is, man, money, machine, material and method. It is not just to hire human hands but also,
to use their minds for the purpose of achieving common goals of firm. Management of human
resources is done by HR executive for enhancing their productivity. HR manager is the key person
who acts as a link between top and lower level of management. The concept of HRM is related with
governance of employees of organisation (Armstrong and Taylor, 2014).
In the present report, Tesco public limited company has been chosen that is one of the
leading firms in retail sector of UK. This enterprise deals with retail business and provide the best
quality products and services to customers. It is the second largest retailing company in Asia. Tesco
is providing services in various areas such as clothing, furniture, electronics, software, petrol and
online. Further, learning will be shown regarding the purpose of adopting human resource
management function in a company. Difference between personnel and human resource
management will also be highlighted. Thereafter, description about roles and responsibilities of line
manager will be discussed. Apart from that, discussion about link between motivational theory and
reward system will be made in the report.
TASK 1
1.1
Difference between personnel management and HRM at Tesco is as follows:
In context of personnel management, it can be said that it is based on traditional view which
is focused on organisational goal. On the other hand, HRM is considered as the modern perspective
which involves accomplishing individual goals as well as the set target of firm.
BASIS PERSONNEL MANAGEMENT HRM
Concept Based on traditional concept Considers modern aspect
Purpose Attaining organisational goal Attainment of individual as well as
firm’s objectives
Orientation
It is task oriented It is people oriented
Focus
Main purpose of this view is to
manage people only
This helps to enhance and develop
KSA (knowledge, skills and attitude)
of employees

Relationship Pluralist frame. Due to this aspect
there is low level of trust between
management and employees.
Unitary frame and trustworthy with
each other
Procedure
It is dominant with rules and
regulations
HRM is based on cultural values,
norms and beliefs
Key relation
With the labour management With customers, market competitors
and intermediates
Skills acquisition
Based on training and development by
off the job training methods
Conducts on the job training
techniques like coaching, mentoring,
simulation activities, learning
assignment, etc.
Reward system Given for job evaluation It is based on job performance of
employees
Key people PM/IR specialist The key person of HRM functions
are line manager and general
manager
Compensation Provided in the form of wages and
salary (Jiang and et.al, 2012).
It gives some financial and
supplementary benefits to employees
for their job performance
Motivation
Lack of motivation in working
practises of subordinates
People are highly motivated towards
higher productivity of organisation
Communication way Close/formal communication Open/informal communication
Decision making
process
Only superiors or manager have an
authority to take decision (Managing
the Human resource in 21st Century,
2009).
It involves worker’s participation in
decision making process to get
creative and innovative ideas for
achieving goals (Bamberger, Biron
and Meshoulam, 2014).
Personality Marginal and collective People with integrated personalities

1.2
Some specific roles performed by the HR manager are as follows:
Figure 1: HR planning
(Source: Dessler, 2016)
 Recruitment: In context of Tesco private limited, HR plays an important role in recruiting
suitable candidates depending on their skills, knowledge and abilities required for specific
positions. So, manager seeks a suitable person for the vacant place who fulfils all
requirements of the firm (Bloom and Van Reenen, 2011). HR executive is responsible to
recruit talented and skilled people from internal and external sources so as to fill the vacant
job positions.
 Selection: This procedure is used to select the most appropriate candidates for a vacant
position. Selection is a method that related to choose the best and qualified candidates who
can effectively perform the assigned job and provide valuable contribution to the firm
(Boxall and Purcell, 2011). With this consideration, Tesco recruits and selects the suitable
person out of pool of job applicants at a right job at correct time.
 Training and development: It is a systematic evaluation of enhancing knowledge, skills
and attitude of people who have been selected. Training is given by the trainer or expert
person to increase their potential and improve personality of trainees. Development is a
phase that helps to improve individual’s performance and personality (Bratton and Gold,
2012). Training is a particular session that is given after selection but development refers to
long term growth.
 Compensation: HR executive of Tesco provides some monitory and non-financial benefits
to employees in exchange of their services provided to organisation. It is a systematic
approach that is received by employees in lieu of services provided by them to company.
This is a tool used by management to meet the requirement of human resources.

 Benefits: There are some financial and non-financial rewards given for making the job roles
and responsibilities better towards organisation. Benefits are provided to employees to
improve their performance and motivate them to meet new challenges to stay in the
competitive market for longer duration. Reward system in Tesco is divided into two parts,
that is, .monitory reward system (higher pay, bonus, cash incentives, etc.) and non-monitory
(recognition, rewards, higher responsibility, etc.).
Figure 2: HRM for line Managers
(Source: Jackson, Schuler and Werner, 2011)
There are so many duties and responsibilities driven by the line manager in Tesco to run
business at higher level that helps in managing human resources of organisation. The work
performance and job roles of employees are to be monitored by the line mangers. They do
supervision on the work done by employees to measure all operations and directly report to higher
authority (Chuang and Liao, 2010).
 Line manager helps to recruit the most qualified candidates and choose the most suitable for
vacant position.
 It is responsible for placing the right person on the right job.
 Line manager is authorized to direct the work of its juniors and is responsible for
accomplishing the business functions.
 The superior always have good relations with organisation to achieve its common goal.
 Line manager conducts sufficient training and development sessions for employees. He has
to oversee the work of employees and inform to the HR manager for conducting training
sessions if required as per the performance evaluation made (Dessler, 2016).
 Performance measurement, customer dealing, providing technical and mechanical expertise,

allocating duties and responsibilities are to be driven by the line manager on daily basis.
Line manager has to take place in communication process at every level of organisation. It
may be verbal, non- verbal or written communication (Huselid and Becker, 2010).
Settlement of disputes and conflicts is also one of the main responsibilities of line manager.
1.4
There are wide range of legal and regulatory framework that have direct impact on the
human resource function of the organisation. These regulations must be strictly adhered while
performing and managing various activities such as staffing, compensation and benefits, etc. e. The
main purpose of the regulatory framework is to safeguard the interest of employees and prevent
them from economic, physical and psychological harm (Wright and McMahan, 2011). The
noncompliance of laid down government regulations may result into legal consequences and
develop negative image of company in market. There are some acts or regulations conduct to
protect workers and their rights, under as:
Figure 3: Legal framework in HRM
(Source: Chuang and Liao, 2010)
 Equality act 2010 – Under this act, there are some regulations and provisions given by
Tesco, UK to provide fair wages and benefits to employees on the basis of their job
performance. This act is supported to anti-discrimination which includes equal pay tax 1970,
sex discrimination act 1970, race relation act 1976, etc. (Harzing and Pinnington, 2010). So,
it considers that discrimination must be prohibited on the basis of gender, age, race,
education and nationality.
 Minimum wages act 1948 – It is important act proposed by UK government in Parliament
that bring forth minimum wage rate that must be considered by corporations while providing

wages and salaries to their employees. The chief interest of this act is to ensure individual
working in an entity are not ill-used in financial terms and are paid the right way for the
services provided by them. With consideration this act, every individual employed in UK of
age group 21 and above must get wages at least £6.70 per hour. On the other hand, those
employees between 18-20 years of age must get payment of at least £5.30 per hour (UK
employment laws, 2016).
 Health and safety act 1947 –It is important act that assure physical wellbeing of all the
employees working within the company. This act ensures the health, safety and security of
employees. It is the responsibility of higher authority to comply with the act involving
employees, employers, trainees, suppliers, buyers, designers, etc. It includes the
responsibilities of employer and employee both to contribute towards management with
concern to the act. These responsibilities are described as:
 Employer –
o Manager must give and maintain safety and security system of work.
o Provide employees good working conditions and fair treatment among all.
o Protect employees from the hazards and non-compliances at workplace.
o Assure his subordinates about their duties and responsibilities (Guest, 2010).
Manager has to render delegation of authorities to make effective decisions for long
run business.
 Employees – They must be loyal with work and other people. Should cooperate and
coordinate with their employers for goal achievement.
 The employees must work with upmost dedication and ensure they does not violate the
organisational policies in any manner.
 They can register their complaints regarding health and safety issues at workplace directly
with management before taking any legal actions (Erasmus and Schenk, 2008).
TASK 2
2.1
Planning is a primary function of human resource management. It includes what is to be
done, how it has to be done and by whom it has to be done. There is no operation that can be
performed by HR manager without having proper planning of human resources at workplace. HR
planning is a process that considers the strategies of management and helps to achieve pre-
determined goals and objectives of enterprise. It helps to regulate HR needs in terms of internal and
external assessment (Jiang and et.al, 2012). An effective planning leads higher productivity to meet
the future challenges and competencies. Human resource planning includes optimum utilisation of

resources for recruiting capable, skilled and knowledgeable candidates for the development of
corporation. . HRM planning function serve as binding force between human resource management
and the strategic objectives of business.HR planning involves following reasons because of which it
is necessary to be performed in Tesco-
 Efficient use of resources – Systematic HR planning provides a way to make an effective
decision by using available human resources. It is believed that to make an effective
decision with efficient utilisation of 5 Ms in order to achieve management goal and increase
productivity (Chang, 2010). HR planning helps in effective utilisation of human resources
which helps to maximise the productivity and avoid wastage of human efforts.
 Establishing goals – Standard goals and targets can be set through HR planning. It helps to
evaluate the employee’s performance for achieving objectives. HR planning measures the
way in which employee is presently performing and can perform in future so that training
can be accordingly provided to him by assessing his potential.
 Reducing risk and uncertainty – It is essential to manage risks at workplace. The process
of human resource planning reduces the chances of risks in the firm. It increases
productivity and maximises output to meet with the challenges (Bratton and Gold, 2012).
The risk of stoppage of production activities due to unavailability of proper quantity of
human resources can be minimized with effective HR planning. .
 Team building – Planning promotes team cooperation and coordination among human
resources (Jackson, Schuler and Werner, 2011). It makes proper division of work that avoids
the duplication of human efforts to reach at the highest level in a competitive market.
2.2
There are several reasons which encourage businesses to make strategic plan for assessing
the human resource requirement. In the context of Tesco, it is highly required for the organization to
assess the personnel which it requires for carrying out business activities more efficiently. Hence,
by taking into account such aspects, Tesco has undertaken following stages for developing plan
regarding the human resource requirement. Assessment of human resources: In the first step of planning process, the business unit
makes evaluation of personnel that is required for delivering quality services to the
customers (Sheehan and Cooper, 2011). In this, Tesco analyses the level to which skilled
personnel are available within the business organization. Forecasting human resource demand: In the second stage, HR department of Tesco makes
evaluation of the personnel which company requires by taking into account the
organizational goals and objectives. For instance: Tesco requires more personnel when it
expands its business operations and functions. Along with this, HR manager also assesses

the level to which skilled employees are present within the business organization. Through
this, business unit can determine the demand of personnel by making comparison of current
inventory level with the set standards (Mariappanadar, 2012). This in turn helps company in
identifying the human resources which it needs to recruit and select. Supply forecasting: At this stage, HR manager of the firm makes estimation regarding the
personnel which they need to recruit from both internal and external sources. In this, HR
manager determines the level through which human resource requirement can be fulfilled
through the means of promotion, transfer, job enlargement and enrichment etc. (Warner,
2013). Through this, HR manager can easily determine the number of personnel which they
need to appoint through secondary sources. Matching of demand and supply: Once forecast regarding demand and supply has been
made, HR manager of Tesco plans strategies in accordance with capabilities of employees.
For this purpose, business unit hires more personnel if it requires additional human resource
inventory for performing the business activities and vice versa.
 Framing action plan: In the last stage, HR department of Tesco organizes recruitment and
selection activity for fulfilling the human resource requirement. Further, business unit also
conducts training session for upgrading the skills and abilities of personnel (Strohmeier and
Kabst, 2014). Hence, by taking into consideration all such aspects Tesco can align its HR
policies with the organizational goals and objectives.
2.3
From assessment, it has been evaluated that both Tesco and Sainsbury makes use of
standardized recruitment and selection process for fulfilling the human resource requirement. At
initial level, both the companies place advertisement in the newspaper and websites of them
regarding the personnel which they require along with the designation. However, Tesco also places
advertisement on social networking sites with the aim of providing information to the potential
candidates about the vacant position or job (Björkman, 2014). Through this, the enterprise can
attract talented personnel for the job to the large extent. Thereafter, business unit scrutinizes the
personnel by making comparison of their skills and abilities in against to the job description and
specification. Thereafter, business unit invites selected personnel for taking part in interview and
other session of selection.
During selection, Tesco and Sainsbury offers equal employment opportunity to the personnel
without making any discrimination on the basis of race, age, gender, disability etc. However, in
past, Sainsbury has offered priority to the male personnel in job as compared to females. This aspect
shows that discrimination has made by the firm during selection on the basis of gender. Besides this,
another difference is that Tesco gives priority to the personnel in job who have reference from

known person. On the other hand, Sainsbury considers skills and abilities of the personnel during
selection rather than references.
2.4
The main purpose of recruitment and selection is to search dynamic and most qualified
employees for the organisation. From the aforementioned discussion, it has been identified that both
the companies are using contrasting methods for recruitment and selection. In this respect, the
staffing function of Tesco is more effective as compared to that of Sainsbury. This is because, the
company is adopting both internal and external sources for recruitment. Therefore, by providing job
opportunity to new candidates the company is able to resolve issues of creativity stagnancy. Young
blood helps in providing creative solutions to the enterprise. While by filling the vacant job post
from internal sources, the company is able to boost morale of present employees and thus make the
best use of their experience and skills (Warner, 2013). Thereafter, it has been identified that Tesco
use online advertisement to attract maximum candidates and induce them to apply for vacant job
post. This is also considered as the cost effective method as compared to traditional styles that are
used by Sainsbury. From the critical assessment of both the entities, it has been ascertained that
Tesco is so far not accused of employees’ discrimination. Due to this aspect, the organization is able
to position itself among top employers of UK. This further helps in attracting new candidates and
retaining present employees in long run. Contradictory, Sainsbury is accused of employees
discrimination due to which it is unable to hire best candidates for its vacant job positions (Sims,
2007).
TASK 3
3.1
High level of association takes place in the motivational theories and reward system.
Moreover, reward whether it is monetary or non-monetary plays a vital role in enhancing the
motivational aspect of the personnel. The cited case situation presents that Virgin media is one of
the leading cable companies of UK and offers services at global level. The company has adopted
merger strategy for expanding business operations and functions at large level. Further, business
unit is also investing money in the latest technological aspects with the aim to attain organizational
goals and objectives (Baker and Doran, 2007). Virgin media places high level of emphasis on the
aspects that motivates employees. This in turn makes employees highly productive in comparison
with industry standards. In this regard, Virgin media can motivate its workforce by taking into
account Maslow's and Herzberg's theory of motivation. By this, the company can offer suitable
rewards to personnel employed into business organization.
According to Maslow's theory of motivation, needs and wants of the personnel arise into a

specific order. It includes psychological, safety, belongingness, esteem and self-actualization needs
(Baker and Doran, 2007). Once needs at the first level has been satisfied then other will arise. Thus,
by considering such aspects Virgin media can motivate its higher level personnel by offering the
opportunities regarding the growth and recognition. Along with this, Virgin media group can also
make use of Herzberg's theory for deciding suitable rewards. This theory entails that there are
mainly two factors such as: hygiene and motivator. These factors may cause satisfaction or
dissatisfaction at workplace. Status, promotion, growth, responsibility etc. are factors which
encourage personnel at workplace significantly. On other hand; job security, working condition and
work-life balance are factors which may result into lower level of satisfaction among the employees
(Erasmus and Schenk, 2008). In accordance with such theory, Virgin media group offers more
opportunity to its personnel in relation to the growth and promotion. Further, the company also
provides challenging working opportunities to its personnel by setting targets for each individual.
Hence, by taking into account both Maslow's and Herzberg's theory business unit can determine
suitable rewards for their employees resides at strategic, tactical and operational level.
3.2
 Virgin media group undertakes following process for determining the worth of job:
In the first step, HR manager of Virgin group makes analysis of the designation by taking
into consideration the job description and specification. In this, HR manager evaluates that if
the individual has desired level of skills and abilities to perform assigned roles and
responsibilities or not.
 Once evaluation of the job has been completed, HR manager ranks the job according to its
description and specification.
 At this stage, manager of the firm allocates financial resources to the job in accordance with
its worthiness.
Hence, by following above mentioned process business unit evaluates job worthiness of the
different human resources. Along with this, there are several factors which Virgin media group
needs to undertake while determining pay structure. Such factors include experience level, skills,
abilities, proficiency level, educational background etc. Moreover, experienced personnel is
considered to be highly productive as compared to fresher (Martin, 2008). Besides this, experienced
personnel requires less amount of training for learning the organizational activities. Further, skills
and abilities are also one of the main factors which have high level of influence on the growth and
productivity aspects of the firm. Hence, by taking into account all above factors Virgin media can
determine suitable pay structure.