Human Resource Management Practices at Tesco PLC: A Comprehensive Analysis

This report provides a comprehensive analysis of human resource management (HRM) practices at Tesco PLC, a multinational British company specializing in grocery and general merchandising. It explores the purpose and functions of HRM, examines different approaches to recruitment and selection, evaluates the effectiveness of various HRM practices in terms of raising organizational profit and productivity, and analyzes the importance of employee relations in influencing HRM decision-making. The report also identifies key elements of employment legislation and their impact on HRM decision-making at Tesco. Specific examples from Tesco are used to illustrate the application of HRM practices in a work-related context.

Human Resource Management

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Contents
Introduction....................................................................................................................................3
Task 1..............................................................................................................................................4
P1 Explain the purpose and the functions of HRM, applicable to workforce planning and
resources in your chosen organisation........................................................................................4
P2 Using examples from your chosen organisation, explain the strengths and weaknesses of
different approaches to recruitment and selection.....................................................................6
Task 2..............................................................................................................................................9
P3 Explain how different HRM practices benefit the management and employees of your
chosen organisation.....................................................................................................................9
P4 Evaluate the effectiveness of different HRM practices in your chosen organisation in
terms of raising organisational profit and productivity...........................................................10
Task 3............................................................................................................................................12
P5 Analyse the importance of employee relations in your chosen organisation in respect to
influencing HRM decision-making...........................................................................................12
P6 Identify the key elements of employment legislation and the impact it has upon HRM
decision-making in your chosen organisation...........................................................................12
Task 4............................................................................................................................................15
P7 Illustrate the application of HRM practices in a work-related context, using specific
examples from your chosen organisation.................................................................................15
Conclusion.....................................................................................................................................18
References.....................................................................................................................................19

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Introduction
Human resource management is one of the most important processes for any organisation.
Increasing competition in the market has made it essential for organisations to have a
dedicated human resource management departments Tesco is an organisation that invest
amount in the development of the human resources so that they are able to execute the job
assigned to them it is the responsibility of the human resource management department that
the resources in the company are able to fulfil the job assigned to them so that the
organisation could achieve its goal and objectives there are many different functions of
Human Resource Management which would be analysed in this report using the case study of
Tesco PLC.

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Task 1
P1 Explain the purpose and the functions of HRM, applicable to workforce planning
and resources in your chosen organisation.
The organisation chosen for the current assignment is Tesco PLC. Tesco is a multinational
British company that deals in grocery and general merchandising. Tesco was founded in 1919
by Jack Cohen and headquarter of the company is in Welwyn Garden City, Hertfordshire UK.
The group CEO for Tesco PLC is Dave Lewis and Charles Wilson is the CEO of UK and
Ireland operations of the company. There are 4.89,000 people employed by Tesco PLC across
the world. Tesco Operates in many countries especially in North America, Asia and Eastern
Europe.
Tesco follows Hierarchal Organisational Structure which is responsible for the centralised
authority in the company. A top down decision making is usually is seen in this type of
organisational structure. The advantage of the Hierarchical Organisational Structure is clearly
defined roles and responsibilities of the employees. But there is not much room of flexibility
in this organisational structure. However, Tesco is planning to shift towards a hybrid
organisational structure to make it more suitable for the change management.
Purpose and Functions of Human Resource Manager at Tesco PLC
The scope of human resource management in Tesco PLC could be divided into the following
three segments:
Personnel Management
The personnel management at Tesco focuses on the hiring of the employees, human resource
planning, recruitment and selection, training and development of the company employees,
employee performance management, promotion of the employees, payroll management and
layoff.
The overall purpose of Personnel Management is to develop a workforce which is able to
help the company in achieving its mission and vision. Performance appraisals, training and
development are three main functions of HRM in personnel management.
Employee Welfare

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The Employee Welfare part of human resource management mainly deals with the working
environment and amenities provided to the resource at work. HR managers make sure that
employees have favourable working conditions and their basic needs such as safety at work
place are maintained (Arthur, 2014). Tesco has appointed Safety Managers to take care of
these responsibilities.
Industrial Relations
Industrial relations refer to the relationship between the top management of the company and
different employee unions. The aim of industrial relations at Tesco is to create a peaceful
environment at workplace.
Functions of HRM
Planning- Planning is the prime function of the HRM at Tesco PLC. HR managers at Tesco
analyse the business strategy of the company and then create a HR strategy accordingly
which includes resource allocation and forecasting.
Organizing- Organising the human resource is an essential function of HRM. Conducting
job evaluation, resource shuffling among the departments and jobs as per the needs of the
organisation, payroll management of the employees are the main organising functions of
HRM at Tesco (Krüger et al. 2011).
Staffing- Arranging the human resources as per the requirements raised by the line managers
is the key function of HRM at Tesco PLC. There are different methods such as internal
recruitment and external recruitment which are exercised by the HR manager at Tesco to
fulfil the resource requirement.
Controlling- Developing the HR policies that defines the working environment at Tesco is
another important function of HRM
Performance management, employee behaviour, employment cessation and appraisals are the
main element of HR strategy
Budgeting- HR managers at Tesco needs to execute the various HR functions within the
budget allocated by the top management. Modes of job advertisement, compensation of the
employees etc. are management by the HR managers at Tesco (Pieper, 2010).

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P2 Using examples from your chosen organisation, explain the strengths and
weaknesses of different approaches to recruitment and selection.
Recruitment and selection are two different processes while many offers uses these two terms
interchangeably. Recruitment is the process of getting the talented employees apply for the
available vacancy in an organisation. When there is a vacancy in an organisation it's the
responsibility of the human resource management department that the candidates suitable for
the job are recruited. Recruitment process involves the development of job description and
advertisement of the vacancy suitable for the organisation. On the other hand selection is the
process in which collective responses from the applicants are filtered in many different steps
which involves written online test and then interview by selection panel and HR manager
There are two processes used at Tesco PLC for recruitment and selection – Internal
Recruitment and External Recruitment.
Figure 1: Internal and External Recruitment (Costa, 2013)
Internal Recruitment
Internal recruitment is the process which involves usually reassigning of the duties of the
employees. Employees are switched from one department to another, from one team to
another, from one location to another etc. (Cherrington, 2011).
Tesco PLC has approximately 4,80,000 employees and HR managers at Tesco always try to
keep some employees in pipeline so that they could be deployed instantly whenever a
demand is raised by the managers. These employees are already trained and skilled and they
could start working as soon as work is assigned to them. Tesco also used promotion as an

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internal recruitment strategy. Many experienced Assistant Managers at Tesco are elevated to
the Senior Managers depending on the requirement, experience and performance.
External Recruitment
External recruitment strategy involves hiring new employees as per the job description given
by managers. In case, HR manager is not able to fulfil the requirement from the pool of
available staff, external recruitment process is initiated.
External Recruitment could be done using one of the below mentioned three methods:
1. Recruitment through referrals
2. Direct Recruitment by Tesco HRM department
3. Outsourcing the recruitment to a placement agency
Internal Recruitment
Strength Weaknesses
 Instant availability of the employee to
handle a critical job
 Cost effective methodology
 Increased motivation in case of a
promotion or increased responsibility
 Familiarity of the employee with
Tesco policies
 Limited options as employee needs to
be selected from a confined number
of staff
 Unwillingness of employee in some
situations (especially in case of
transfter transfer)
External Recruitment
Strength Weaknesses
 Availability of huge number of
resources in the market and option to
choose the best.
 Better chances of finding a resource
whose skills and experience match
exactly with the requirement
 Competitive advantage when an
employee from a rival organisation is
 External recruitment process takes
more time then internal recruitment
 Tesco might have to pay extra for a
talented resource
 Unfamiliarity of the new employee
with Tesco policies and practices

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hired.
 Resource replacement opportunity in
case of outsourcing the recruitment
and selection by the placement
agency.
As a HR manager, I would like to keep both options (internal as well as external recruitment)
open and use them according to the situation. Selection of the best strategy out of these two
also depends on market trends and conditions. For example, maintain a huge pipeline of
resources in a bad economy might be a costly approach.

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Task 2
P3 Explain how different HRM practices benefit the management and employees of
your chosen organisation
HRM practices are the strategies which an organisation develops for the maximum utilisation
of the human resources. Some of the important HRM practices are:
1. Payroll Management
The HRM department at Tesco is responsible for the payroll management of the
employees. Payroll of the employees is decided on many factors such as education
level of the employee, experience in the relevant field, skills and professional
certification etc. Better payroll management ensures that skilled resources are
available to the organisation without spending too much money.
2. Employee Relations
Employee relations practices are used by the HR at Tesco to establish a friendly
working environment where employees are satisfied with the policies of the
organisation and cooperate with the management to achieve the goals and objectives
of the organisation (Rudiger, 2010). While better employee relations results in high
level of employee satisfaction, Tesco’s net productivity is increased resulting in
increased revenue and profits.
3. Forecasting the demand and supply
Forecasting the demand and supply of the human resources is an essential HR practice
which is implemented by the HR managers at Tesco PLC. HR manager at Tesco
assesses the market conditions and forecast the need of the human resources it would
be having in the future (Michael and Matt, 2010). At the same time, inventory
assessment of the current human resources is done to identify the availability of
trained resources available. Forecasting does not only predict the number of
employees but also the skills and experience needed.
4. Recruitment and Selection
Recruitment and selection process is carried out based upon the forecasting done by
the HR manager at Tesco PLC. Requirements raised by the department managers are
also considered before starting the recruitment and selection process. Tesco HR
always tries to first explore the possibilities of fulfilling the requirements with
existing resources and then go for external requirement.

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5. Training and Development
Training and development practice is very important for Tesco PLC. HR managers at
Tesco do not only focus on the training of the newly hired resources but also look for
the continuous development of the existing resources.
6. Reward Management
Rewards management is an HR practice which is executed for the employee
motivation. HR managers at Tesco understands the importance of the employee
motivation and different reward management strategies are developed and
implemented to make sure that employees of the company are highly motivated.
7. Performance Appraisals
HR managers at Tesco use feedback and evaluation of the employees for performance
appraisals. At Tesco, HR does not rely on a single source or feedback for the
performance appraisals but multiple sources are involved in the practice. Feedback on
the performance of an employee is collected from the reporting manager of the
employee, colleagues, team members and customers on different activities performed
by the employee
P4 Evaluate the effectiveness of different HRM practices in your chosen organisation in
terms of raising organisational profit and productivity
Forecasting and Organisational Profit / Productivity
Forecasting of the demand and supply is a part of the human resource planning process.
Forecasting has provided to be very effective in estimation of the resource requirements and
resource allocation. If Tesco management is able to predict the market trends and future
assignments, it could start the resource identification, recruitment, selection and training in
advance. This would enable the organisation to have the enough manpower to implement the
organisational strategy.
Reward Management
Reward management is used at Tesco PLC as a mean to motivate the employees. According
to Maslow’ Hierarchy of Needs Theory, if an organisation is able to go beyond the basic
physiological and safety needs and fulfil the self-esteem and self-actualisation needs of the
employees, it would improve the motivation level of the employee. Motivation is directly

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related to the employees’ performance and researches have shown that good motivation level
always results in enhanced productivity of the employees.
Training and Development
Like every other organisation, it is essential for Tesco PLC to make sure that the resources it
has are able to fulfil the job responsibilities assigned to them. Tesco invests a lot in its
employees and make sure that they are able to meet the challenges of they face during work.
However, Tesco has a core employee workforce which is skilled and experienced; the HR
managers always try to ensure that new recruits hired by the organisation are groomed to
become skilled professionals (Senécal et al, 2010). A structured training and development
program is put in place by the HRM department of Tesco which includes classroom training,
e-learning, cross platform training, on the job training, seminars and conferences to train the
new employees and keep the experienced employees updated with the latest technologies and
methodologies.
Performance Appraisals
Monitoring the performance of the employees is the key task of the HR managers at Tesco
PLC. In the old days, HR used to seek only the report from the managers about the
performance of the individuals working under them. However, these days 360 degree
approach for performance monitoring and appraisal is implemented at Tesco PLC. In this
approach, HR managers first ask the individual to assess himself and provide self-rating on a
pre-designed format which is then reviewed by the reporting managers. Managers then
forward the assessment to the HR manager with their comments on the performance of the
employee. HR uses this information along with the feedback it collects from the team
members, colleagues and clients for performance measurement and appraisal.
Employee Relations
In past, organisations used to deal with individual employees but these days most of the
organisations have employee unions which are represented by one or a small group of
employees. It has made it easy for the HR at Tesco PLC to address the needs of the
employees in a more efficient manner which has enhanced the performance of the employees
because of the positive working environment in the organisation.

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Task 3
P5 Analyse the importance of employee relations in your chosen organisation in respect
to influencing HRM decision-making.
When it comes to employee relations, the HR managers at Tesco PLC believe in better
employee engagement strategies. Higher level of employee engagement has a psychological
impact on the employees’ behaviour because a sense of importance is created among them. It
enhances the self-esteem and self-actualisation of the employees with increased productivity.
Collective Bargaining, Direct Engagement with the employees and negotiation with them on
various HR policies are very important from the perspective of employee relations. For an
organisation to grow, it is mandatory that there are good relations of the company
management with the employees (Salas, Mullen & Driskell, 2010).
Decision making process is a key element of employee relations which is crucial for the
human resource management at Tesco. Tesco HR involves the employees / elected
representatives of the employees whenever a new HR policy is being developed. All the
points of the HR policy are discussed with the employees to make sure that there is good
understanding among them and no conflicts arise because of the new HR policy.
The soul of Employee Relations is Commitment. While personnel management used to focus
on compliance, human resource management considers commitment a better option for good
employee relations (Delaney and Huselid, 2016). When involved in the decision making
process, employees start thinking beyond their personal growth and contribute in the
organisational growth and expansion.
An important aspect of collective bargaining with the employees is two way communications.
However, Tesco’s hierarchical structure is an obstacle for the two way communications; HR
managers at Tesco keep trying to improve the communications with the employees.
Employee Information System is implemented by Tesco HR where employee could express
their views on the HR policies. Tesco considers these views during the decision making
process which has helped the HR in developing a trust among the employees (Senécal et al,
2010).

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P6 Identify the key elements of employment legislation and the impact it has upon HRM
decision-making in your chosen organisation.
There parliament of UK has put in place many legislations that govern the employment in
UK organisation. These legislations are applicable to the organisations that operate in UK.
The HR managers at Tesco have included these laws in the HR policies and use them in
developing better employee relations. Some of the key legislations which are adopted by
Tesco HRM department and their impact on the decision making process are described
below:
1. Employment Act 2008
The Employment Act 2008 was introduced by the UK government to protect the
rights of the employees. According to the Employment Act 2008, an employment
contract has to be established between the employer and the employee that defines the
terms of employment. Tesco PLC follows this Act and a legal contract is signed by
the company and the employment.
The Employment Act 2008 prohibits Tesco HR from a wrongful dismissal. Even in
the case of a valid termination of the employment, Tesco has to give an advance
notice to the employee describing the reason behind the termination. In case of an
unfair dismissal, employee has the right to approach the employment tribunal / court
to sue the employer.
2. The National Minimum Wages Act 1998
To protect the rights of the employees of receiving fair compensation in exchange of
their services to the employer, the government of UK introduced National Minimum
Wages Act 1998. According to this act, a minimum of £7.50 wage is set for every
employee older than 25 years.
Most of the time, employee relations are affected because of the unfair wages and
results in conflicts among the employees and employer
Tesco HR makes sure that the wages of the employees are set above the defined
wages in the Act which has helped the company in developing better employee
relations.
3. Working Time Directive 1998
The Working Time Directive 1998 focuses on the maximum numbers of hours an
employee could be asked to serve during the employment. Tesco cannot ask its
employees to work for more than 8 hours a day. However, if there is an agreement

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between the HR and employee, the working hours could be increased in exchange of
overtime paid to the employees.
4. Equality Act 2010
The Equality Act 2010 prohibits any kind of discrimination at Tesco. HR managers at
Tesco make sure that every employee is treated in an equal manner and no
discrimination is made based on the gender, age, religion, race or any other factor.
5. Health and Safety Act
Employment legislations in UK make sure that the employer provides a safe working
environment to the employees. Tesco HR policies include these provisions and all the
safety guidelines are followed by the company. This Act allows the employee to say
no to any hazardous work as mentioned in the employment contract.
6. Trade Unions and Labour Relations Act 1992
This is one of the most important legislation which directly affects the employee
relations. According to this legislation, Tesco has to recognise a trade union formed
by the employees. Tesco is obliged to have an understanding with the trade unions on
the matter related to different employment terms.
The objective of Trade Unions and Labour Relations Act 1992 is to ensure the
participation of the employees in the decision making process. In case, Tesco does not
follow the employment terms and conditions, trade unions have the right to strike for
a valid reason. This is the most important provision of the act which forces Tesco to
have meaningful bargaining with the employees.

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Task 4
P7 Illustrate the application of HRM practices in a work-related context, using specific
examples from your chosen organisation
Job specification
Job Details:
Tesco invites application for the position of Marketing Executive to implement the digital
marketing campaign for the new product
Qualifications:
The candidate must have a Post Graduate Degree in Marketing from a reputed university
recognised in UK.
The candidate must have at least 8 year experience in digital marketing
Role:
Digital Marketing Executive
Competencies:
The candidate should have the following competencies:
1. Knowledge of the marketing domain
2. Knowledge of the retail and general merchandising industry
3. In depth knowledge of the micro and macro marketing environment
4. In depth knowledge of the Marketing Mix
5. Efficient in Search Engine Marketing, Search Engine Optimisation and Social Media
Marketing
6. Minimum 8 year experience in various digital marketing technologies
Responsibilities:
 To analyse the market data using various data analytics tools
 To implement the Information management System and provide data to the senior
marketing manager on current marketing trends
 Coordinate with third party/ software development vendor for the flawless execution
of the Marketing domain ERP Software
 Developing project scopes and objectives, involving all relevant stakeholders

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 Identify potential points of contention for missed deliverables
 Create and implement strategy to mitigate shortfalls in timeline and budget
 To develop digital marketing strategy for the new product to be launched by Tesco
 To prepare the online marketing campaign
 To execute the online promotional campaign
Person specification
Rodger’s 7 point Person Specification for the position of Digital Marketing Executive with
Tesco PLC is provided below:
Factors Description
Physical qualities The applicant should have good health to bear the job
responsibilities
Attainments The applicant should possess the relevant qualifications for the
position of Digital Marketing Executive
General intelligence The applicant should have excellent problem solving skills and
ability to work under pressure
Special Attributes Excellent knowledge of the digital marketing domain is must
Interest The applicant should have interest in the marketing strategies
Disposition Influencer, self-reliance
Circumstances Able to lead a team of experienced colleagues
Job Offer to the Selected Candidate
Hi XYZ,
We are pleased to inform you that you are hired for the position of Digital Marketing
Executive with Tesco PLC with the following details:
Designation: Digital Marketing Executive
Salary: ………………..
Stock Options: Not Applicable
Work Location: Welwyn Garden City, Hertfordshire UK

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Starting Date: 25th April 2018
As an employee of Tesco PLC, you are entitled to the benefits as mentioned in Annexure I
attached with this letter.
This offer is valid until 25th May 2018. To accept the offer, you just need to send an email
accepting this offer to the HR Manager
If you have any questions, feel free to reply to this email or call Tesco PLC HR Manager
We are looking forward to having you as a team member and helping you reach your full
potential at Tesco
Regards,
Stefania
[e-mail]
Mob: …………………….

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Conclusion
Tesco is one of the fastest growing organisations and the main reason behind the fast growth
of the company is the skilled and experienced employees of the company. The human
resource management department is a department which is dedicated to manage the various
employee related functions. Tesco has developed its HR policies that follow the well-
established HR standards and all the relevant legislations for better employee relations are
included in the HR policies.

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