Functions of HRM and Recruitment Approaches in TESCO

This report discusses the purpose and functions of HRM in TESCO, strengths and weaknesses of recruitment approaches, benefits of HRM practices for employees and employers, and the effectiveness of HRM practices in raising organizational profit and productivity.

Human Resource
Management
1

Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Explanation of the purpose and the functions of HRM, applicable to workforce planning
and resourcing an organisation....................................................................................................3
P2 Strengths and weaknesses of different approaches to recruitment and selection..................4
TASK 2............................................................................................................................................6
P3 Benefits of different HRM practices for both the employees and the employers within an
organisation..................................................................................................................................6
P4 Effectiveness of different HRM practices in terms of raising organisational profit and
productivity..................................................................................................................................7
TASK 3............................................................................................................................................8
P5 Analysis of the importance of employee relations in respect to influencing HRM decision-
making.........................................................................................................................................8
P6 Identify the key elements of employment legislation and the impact it has upon HRM
decision- making........................................................................................................................10
TASK 4..........................................................................................................................................10
P7 Illustration of the application of HRM practices in a workrelated context, using specific
examples....................................................................................................................................10
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13
2

INTRODUCTION
Human resource management refers to practices aimed at increasing effectiveness of
employees of an organisation. This report aims at understanding the various functions of HRM in
an organisational context of TESCO which is a leading grocery retailer in the UK domestic
markets and was founded in the year 1919 by Jack Cohen. The report attempts to evaluate the
different methods of recruitment and importance of HRM practices in increasing employee
productivity and organisational profit as well (Smith, 2016). In this project report, an attempt has
been made to evaluate the importance of employee relations in HRM decision-making and how
various laws affect the HRM practices within an organisation. At last, the report aims to provide
an example of implication of HRM practice in an organisational context.
TASK 1
P1 Explanation of the purpose and the functions of HRM, applicable to workforce planning and
resourcing an organisation.
Human Resource Management refers to a set of practices and concepts used by the human
resource managers of an organisation which aims at managing and controlling the most
important resource of an organisation i.e. human resource and employees (Samantara and
Sharma, 2015). It aims at maximising the employee productivity within an organisation.
Effective utilisation of every other resource of an organisation majorly depends on the efficiency
and effectiveness of human resource. TESCO plc employees over 4,50,000 people in an year
which makes it extremely crucial for the company to effectively manage its human resource
(Renwick, Redman and Maguire, 2013). HRM functions assists attainment of organisational
objectives by directing efforts of employees. Workforce planning refers to the estimation of staff
and human resource requirement, appointment and training of the people with relevant skills
required for completion of tasks assigned to them. Some of the most important functions of
HRM related to workforce planning done by the management of TESCO plc ltd are as follows:
Recruitment:
Recruitment refers to the hiring of people for conversion of organisation resources into
useful products and services. Effective recruitment is the function and most important objective
of HRM. The human resource manager of TESCO ltd undertakes the process of recruitment by
3

charting out the skills and abilities required for execution of tasks. It helps the company appoint
the right kind of people with right skillset.
Training & Development:
Training and development of people who are recruited during the first stage is as essential
as any other function of HRM. Effective training of employees help them to deal with real world
problems in a better way during job posting. Training modules and systems have been prepared
by the managers of TESCO plc under which the current skills and abelites of every employee is
determined and the programme is developed to inculcate the required skills for job execution.
Performance management:
Performance management is another important function of HRM. It refers to a
monitoring programme aimed at evaluation of employee performance and comparison of actual
results or performance with the standard performance to find any deviations and take corrective
actions or steps. High performance working teams have been developed by the management of
TESCO with the help of effective performance management. Employees tend to perform better
when they are aware that their performance is being monitored and evaluated at every stage.
Compensation:
HRM managers have the responsibility and function of designing compensation models
which have the potential to attract and motivate employees to perform with their best potential
for achievement of organisational goals. The management of TESCO plc has adopted
performance-linked rewards system for inducing better operational and employee efficiency.
All these functions of HRM are extremely important for any organisation to achieve
organisational goals and effectively undertake workforce planning and resourcing for any
organisation.
P2 Strengths and weaknesses of different approaches to recruitment and selection.
Different approaches used by management of TESCO plc ltd for recruitment process
includes internal recruitment and external recruitment. There are some merits and demerits of
both the approaches. Here is a brief explanation of both the methods of recruitment and
selection:
Internal recruitment:
Internal recruitment refers to the process of recruitment where an opportunity for
employment or vacancy is filled from within the current pool of employees of the organisation
4

(Noe and Kodwani, 2018). A lot of companies and organisations use this approach for filling the
top-management positions of the organisation. Internal approaches for recruitment being used by
the management of TESCO plc ltd are mainly promotion to a higher position, transfer and job
enrichment.
The main advantages of using internal methods for recruitment include the motivation of
employees. An opportunity of promotion in the organisation creates a positive work environment
and every employee tends to perform with best efficiency to get promoted. This boosts the
motivation and enthusiasm of employees leading to a better operational efficiency. Internal
methods of recruitment are cost-effective and require very little or less time. However, using
internal methods for recruitment leads to a limited number of candidates or employees which can
be considered which means that the organisation may miss out on the fresh and innovative talent
outside the company. It also sometime arises internal conflicts to use bad practices to get
promoted.
External recruitment:
External recruitment refers to the evaluation and consideration of the pool of resources
outside the organisation to fill the employment positions and vacancies. Managers of the
organisation generally tend to hire fresh and innovative talent for the company to gain a
competitive edge and bring innovation and creativity in the organisation. It also leads to better
use of resources within the organisation. Major sources of external recruitment used by TESCO
plc ltd include employment agencies, advertisement, paper and electronic media, career section
in company’s website, online resumes etcetera.
The most important advantage of using external recruitment sources is that it brings fresh
skills and talents into the organisation and TESCO ltd. is presented with a pool of candidates
which can be used for workforce planning and resourcing. It fosters innovation in the whole
organisation. However, external sources of recruitment are costly and require a lot of time and
efforts (Moutinho and Vargas-Sanchez, 2018). A high fees is charged by the media houses to
publish advertisement related to job openings. It has been observed that if an organisation uses
external sources of recruitment for filling the middle and top management level positions, it
demotivates the employees and increases staff turnover and job dissatisfaction.
Hence, it is advisable for the management of TESCO plc ltd to rely on a right mix of both
internal and external sources of recruitment for meeting the human resource needs of the
5

organisation. Lower positions should be filled using external sources while reserving some part
of middle and top management position for the existing employees.
TASK 2
P3 Benefits of different HRM practices for both the employees and the employers within an
organisation.
In every organisation, a large number of HRM practices takes place which are beneficial
for both the employers and the employees (Lewicki, Barry and Saunders, 2016). The importance
of these practices increase manifold for organisations such as TESCO which operate on a large
scale and globally. The benefits of some of the activities for both employers are employees are:
Career Management:
One of the most important practice being followed by the management of TESCO plc ltd
is career management of the employees. Career management programmes such as skill
development and training is very helpful for both the employees and the employers of the
organisation (Kim, 2012).
Employees:
It shows the employees that the company doesn’t not only intend to obtain short term
benefits from the employees but actually care about their future and career. It increases the
motivation and boosts the morale of employees which helps in achievement of organisational
goals and objectives as well.
Employer:
It also improves the employee retention and staff turnover for the company because of
increased job satisfaction and motivated workforce. Increasing employee retention also helps the
management of TESCO Ltd. to save the costs related with frequent recruitment and selection in
the company.
Security:
Arguably and quite evidently the best practice being followed by TESCO plc is providing
job and financial security to the employees. Benefits of security for both employees as well as
the company are as follows:
Employees:
6

Various policies such as medical insurance and life insurance are adopted by the
management of TESCO to provide job and financial security to the employees. Having security
motivates the employees to perform to their best potential and increases their efficiency.
Employer:
Employees feel more committed towards the organisation which leads to better
operational efficiency which is desirable for every company. Providing financial security also
results in better employee retention and company goodwill.
Rewards linked to performance:
Implementing a compensation model wherein employees are rewarded on the sole basis
of their performance and efficiency is also another important practice of human resource
management used by TESCO plc ltd.
Employees:
Employee are also motivated since there direct benefit of increased performance and
efficiency is availed by them in forms of rewards and incentives. It also increases the job
satisfaction for employees and helps in improving their professional life.
Employers:
A direct linkage between rewards and performance ensure motivation of employees and
increased productivity in the organisation which every employer aims at for achievement of
organisational goals and objectives
Work environment:
A healthy and safe working environment goes a long way in ensuring that employee
performs to their best potential and no hindrance is there due to a bad working environment.
Employees:
A safe and healthy working environment is desirable by the employees and it also helps
them to increase their efficiency and execute the tasks assigned to them in an optimum manner.
Personal health and security of employees is also improved by a provision of safe and healthy
work environment in the company.
Employers:
One of the main reason why a large part of the workforce is willing to get associated with
companies like TESCO is because of the policies adopted by the company to ensure safe
7

working conditions for the employees. Employee productivity improves in direct proportion
while working at an environment which is safe and healthy.
It can be evaluated on the basis of above discussion that different practices for human
resource management in the organisational context of TESCO Ltd. has multiple benefits for both
employers as well as the employees. Thus, the implementation of these practices in every
organisation is beneficial and should be encouraged by the management to increase job
satisfaction for employees and improve operational productivity along with fostering a motivated
workforce.
P4 Effectiveness of different HRM practices in terms of raising organisational profit and
productivity.
Various practices of HRM aim at increasing and maximising the productivity of the
employees as well as the organisation which helps in increasing profits as well. Some of the
HRM practices being used by the management of TESCO plc ltd for increasing organisational
productivity and profit are:
Employee relations:
Human resource manager at TESCO plc ltd organises many spaces for interaction
between the employers and employees which helps in development and fostering of better
human relations in the organisation between the employer and employee. Better relations help in
improving the dedication and commitment of employees and more often than not, employees
obey their managers because of the personal relations between them and mutual respect
(Jennings and Stadler, 2015). Employee productivity increases the organisational productivity
which in turn increases the profit and revenue of the company. Better human resource utilisation
leads to optimum use of every other resource of an organisation which reduces wastage and
increases profit.
Performance management:
Performance management practices such as budgetary control and comparison of actual
performance with standard performance leads to a better employee productivity. Performance
measurement helps the management of TESCO to determine whether the current employee
efforts are directed towards achievement of organisational goals and increasing the profit of the
company (Glendon, Clarke and McKenna, 2016). When employees are aware that their
8

performance in being monitored, they tend to perform with better efficiency and organisational
productivity is enhanced and improved.
Selective Hiring:
Recruitment programme involve a huge amount of time, efforts and costs. Thus, it is
extremely important for the management to hire people with the desired skills and talents for
completion of the job. The management of TESCO plc ltd uses job analysis to identify the skills
which are required for completion of a job and then hire the people with matching or relevant
skillset. This helps the company to increase the organisational productivity since execution of
tasks becomes easy and effective. A large cost is also involved so frequent recruitments don’t
happen as a result of selective hiring which also improves organisational profit.
Performance based reward:
It has been observed by the management of TESCO that employees are motivated to
perform with their best potential and efficiency if a direct link is established with the outcome
and input on the job. Performance based rewards helps the company to boost employee morale to
perform with best efficiency so that the related rewards could be earned by them. This is the best
way to improve organisational productivity and profit. However, there should be a proper system
for performance evaluation and measurement before implementing this technique to make sure
that every aspect or factor important for evaluation of performance is duly considered by the
company.
Hence, it can be evaluated on the basis of above arguments that different human resource
management practices such as selective hiring or performance based rewards in an organisational
context helps in improving and enhancing the employee productivity. Employee productivity
influences and determines the overall operational productivity and profit. For example, if an
employee at TESCO Ltd. increases his productivity to produce more goods in limited resources,
it will directly lead to increasing operational productivity and profit by selling those additional
goods produced. Thus, employee productivity as a result of HRM pratices influences and
improves operational productivity and profit in an organisation.
9

TASK 3
P5 Analysis of the importance of employee relations in respect to influencing HRM decision-
making.
Employee relations can be defined as the positive or negative workplace bonds or relations
between the employees and the employer which form a part of the bigger organisational culture
and environment. Managers of every organisation undertake and adopt policies which help in
improving these relations to influence positive attitude and behaviour of the employees. It has
been observed many times that positive workplace relations leads to better organisational and
employee productivity which makes these positive relations more desirable (Flamholtz, 2012).
Employee relations have a significant impact of the decision-making process of the human
resource managers of any organisation. It changes the way the management decisions are
perceived by the employees. Some of the policies and strategies adopted by the management of
TESCO plc to influence positive relations are:
Planning for change:
In the context of TESCO plc, every decision which is expected to change or influence the
employee behaviour and activities related to their daily task and jobs is taken by the management
with the complete participation and engagement of employees to foster positive relations in the
organisation. Planning with employees for each and every organisational change helps the
employees to better adjust to these changes and it also improves the performance and efficiency
of employees. Employees feel more valued when they are a part of a decision-making process
which increases mutual respect and the relation in particular between the employer and the
employee.
Promotion of positive behaviour:
The human resource managers and every manager of the organisation TESCO exhibits
positive attitude and behaviour which leads to a promotion of such behaviour in the whole
organisation. Many researches have argued that leadership by example is the best form of
leadership and similarly by promoting positive behaviour, the management develops positivity in
the whole organisation. It improves the employee relations and job satisfaction for the employees
which result in high productivity and attainment of goals and targets. When positive behaviour is
encourages, some minute negative aspects related to the workplace are automatically looked
upon and neglected.
10

Organisational culture:
The main objective of managers of TESCO ltd is to develop a culture within the
organisation which helps in fostering positive and better employee relations. Spaces are provided
by the management which help in achieving this objective. Employee participation and
engagement is also another practice which helps in better interaction between the management
and workforce (DeCenzo, Robbins and Verhulst, 2016). One of the most important thing which
is to be noticed is the open communication policy adopted by TESCO which goes a long way in
better relation development. Without effective communication, it is very hard to develop respect
or liking for any senior or leader of the organisation.
It can be thus concluded that employee relations in an organisation is a very important
aspect which basically influences every decision taken by the management or the human
resource department of the organisation.
P6 Identify the key elements of employment legislation and the impact it has upon HRM
decision- making.
Government all over the world has been trying to develop more and more policies and
rules and laws which help in better working conditions for the employees and ensures no
exploitation at any level whatsoever (Daley, 2012). The management of TESCO ltd is following
many laws and regulations under government advisory to provide better working conditions to
the employees which are as follows:
Anti-discrimination act: This act is being followed by the management of TESCO plc ltd
to ensure that no sort of discrimination exists in the organisation on the basis of any factor
involved with cultural or relational background. It helps the company to ensure equality in
treatment in the whole organisation.
Minimum-wages act, 1998: The management of TESCO ensures that the employees are
being remunerated according to the provision set under this act and no sort of legal obligation is
left unfulfilled. It has a direct impact on the motivation and performance of the employees.
Sex-discrimination act, 1975: As per the provision of the law which states that no
employee should be discriminated on the basis of sex or marital status in terms of selection for a
job or pay-scale is duly being followed by TESCO to ensure equal opportunities for every
section of the society.
11

Working environment law: As per the act of safe and healthy working environment,
TESCO makes sure that the working environment for the employees is safe and healthy and
proper sanitisation and cleaning is ensured. There should be no factors related with unsound
working facilities. It has a direct impact on employee performance and motivation.
TASK 4
P7 Illustration of the application of HRM practices in a workrelated context, using specific
examples.
The most important and relevant practices involving Human resource management
includes recruitment of employees, selection, training and development to inculcate skills and
talents for execution of tasks (Cogin, 2012). The management of Tesco ltd. uses job analysis and
job description as a tool to specify the skills which are required for execution of the job so that
the person with the matching skills can submit their application. It is very helpful in ensuring that
the right kind of people are hired for the job according to the organisation requirements. Here is
an example of application of this HRM practice in the Tesco plc ltd.
JOB DESCRIPTION
Organisation Name: TESCO PLC LTD.
Job Details: Senior marketing manager
Job title: Sales and Marketing Assistant
Job Type: Full Time
Salary: £45,000
Location: Hertfordshire, England
Job Purpose:
 Provide guidance to the marketing and sales department
 Candidate should be able to manage the social media accounts and online presence of the
company.
 Cooperation with department of sales for better and effective organisational forecasts.
Responsibilities of the selected candidate includes:
 To handle the social media handles of the company.
12

 To control and manage the online sales platform of the organisation.
 To analyse the trends in the industry with the help of social media marketing.
 To prepare marketing campaigns for the company.
 To undertake primary research for understanding effectivenss of various campaigns.
Interested candidates can send the resume on [e-mail] or contact at the below mentioned
contact number.
Thanks & Regards
HR Manager
TESCO PLC LTD
Contact no. + 44 (0) 1834 646895
CONCLUSION
It can be concluded from the above report that Human resource management is one of the
most important function for any organisation which ensure effective operational performance as
well. TESCO ltd uses various policies for better management of the human resources. It can be
analysed that various sources of recruitment used by the company have both advantages and
disadvantages such as timeliness and cost-effectiveness (Barratt-Pugh, Bahn and Gakere 2013).
Different HRM practices are helpful for both the employer and employees in terms of increasing
the organisational productivity and profit as well. It can be observed that employee relations in
an organisation is an important aspect which influences the HRM decision-making and various
laws and regulations govern the human resource practices in any organisations. At last, the report
evaluates the implication of HRM practice in an organisational context.
13

REFERENCES
Books and Journals
Barratt-Pugh, L., Bahn, S. and Gakere, E., 2013. Managers as change agents: Implications for
human resource managers engaging with culture change. Journal of Organizational
Change Management. 26(4). pp.748-764.
Cogin, J., 2012. Are generational differences in work values fact or fiction? Multi-country
evidence and implications. The International Journal of Human Resource
Management. 23(11). pp.2268-2294.
Daley, D.M., 2012. Strategic human resources management. Public Personnel Management,
pp.120-125.
DeCenzo, D.A., Robbins, S.P. and Verhulst, S.L., 2016. Fundamentals of human resource
management.
Flamholtz, E.G., 2012. Human resource accounting: Advances in concepts, methods and
applications. Springer Science & Business Media.
Glendon, A.I., Clarke, S. and McKenna, E., 2016. Human safety and risk management. Crc
Press.
Jennings, B. and Stadler, R., 2015. Resource management in clouds: Survey and research
challenges. Journal of Network and Systems Management. 23(3). pp.567-619.
Kim, S., 2012. The impact of human resource management on state government IT employee
turnover intentions. Public Personnel Management. 41(2). pp. 257-279.
Lewicki, R.J., Barry, B. and Saunders, D.M., 2016. Essentials of negotiation. McGraw-Hill
Education.
Moutinho, L. and Vargas-Sanchez, A. eds., 2018. Strategic Management in Tourism, CABI
Tourism Texts. Cabi.
Noe, R.A. and Kodwani, A.D., 2018. Employee Training and Development, 7e. McGraw-Hill
Education.
Renwick, D.W., Redman, T. and Maguire, S., 2013. Green human resource management: A
review and research agenda. International Journal of Management Reviews. 15(1).
pp.1-14.
Samantara, R. and Sharma, N., 2015. Talent Management at Tesco: A Case Study. Parikalpana:
KIIT Journal of Management. 11(2).
Smith, A., 2016. Experiential learning. Edward Elgar Publishing Limited.
14