Benefits of HRM Practices in Tesco

This document discusses the benefits of different HRM practices within Tesco, including recruitment and selection, flexible services, and training and development. It also evaluates the effectiveness of these practices in enhancing profit and productivity.

Human resource
management

Table of Contents
INTRODUCTION...........................................................................................................................1
LO1..................................................................................................................................................1
P1) Purpose and function of HRM..............................................................................................1
P2) Strengths and weakness of different approaches to recruitment and selection....................3
LO2..................................................................................................................................................5
P3) Explain the benefits of different HRM practices within an organisation.............................5
P4) Evaluate the effectiveness of different HRM practices........................................................7
LO3..................................................................................................................................................8
P5) Analyse the importance of the employee relation that influence HRM decision-making....8
P6) Identify the key elements of employment legislation...........................................................9
LO4..................................................................................................................................................9
P7) Illustrate the application of HRM practices..........................................................................9
CONCLUSION .............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
HRM is a crucial as well as a complex task that includes a number of activities like
recruitment, selection, induction, orientation, performance appraisal and monitoring, motivating
employees, training and development programmes, etc (Bailey, 2018). which are necessary for
maintaining and retaining good employees for a longer period of time to achieve strategic
objective of an organisation (Human resource management, 2020). The organisation selected for
this assignment is TESCO plc which is a multinational British retailer and merchandise company
dealing and providing a wide range of packed food items, groceries, clothing, electronic items
together with a range of home appliance and finical services to its customers. This report
includes a discussion over purpose and functions of HRM together with strengths and weakness
of various recruitment and selection approach. Beside this, benefits of HRM practises and its
effectiveness in raising profit and productivity is also included. Further, this report consist of
importance of employees relation and elements of employment legislation that have a significant
impact on decision making of an organisation. At last, application of HRM using specific
examples in a work related context is also provided.
LO1
P1) Purpose and function of HRM
Human resources management is basically a strategic approach of an organisation that
aim at effective development and management of workforce of a company in order to gain a
better competitive advantage and strength through maximization of employees performance
(Banfield, 2018).
Tesco: Tesco is a UK based retail giant. It deals in groceries and general merchandise. It
ranked world's ninth biggest retailer in terms of revenues. Tesco was established by Jack Cohen
in the year 1919. Tesco has various subsidiaries like Tesco bank, booker group, telecoms, Tesco
tech support.
Human Resource Management Purposes:-
1. Supervise employee’s to ensure that they are working properly.
2. To take out best possible output from available resources.
3. To hire talented employees for effective and efficient working of an organisation.
4. To retain best employees by giving them monetary or non monetary rewards.
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5. HRM is responsible for creating good working environment in order to increase
employee's job satisfaction.
6. HRM is accountable for ethical and fair functioning of the company.
Human Resource Management Functions:-
Staffing: It the responsibility of HR manager to recruit talented employees from the pool
of applicants. Tesco is a retail company therefore it needs employees with talent of efficient
marketing. Tesco should allow applicants from non-marketing backgrounds because marketing
does not come through education. It is inborn trait of an individual. HR manager should screen
candidates with sales acumen and psychometric test to evaluate their skills.
Training and Development: Knowledge of marketing gained by employees in their
degree is not sufficient in itself. HR manager should provide training to employees so that they
can work efficiently and contribute to the organisation's growth. In Tesco’s context, it is the duty
of HR manager to conduct proper training and development of employees before they seek
practical exposure to the market (Bastida, 2018).
Orientation: When an employee joins a new company than the introduction to working
environment, company's various policies, compensation structure, promotion and incentive
criteria provides by the HR manager is called Orientation. Tesco’s HR manager have to provide
thorough introduction of company’s work and policies when a management trainee join the
company. Employees should have the knowledge of company, company policy and promotion
and incentive criteria.
Remuneration: HRM is liable to pay appropriate salary to all its employees according to
the difficulty level of their work and their performance in that work. Compensation can be
monetary or non-monetary like promotion, power or perks. Tesco should compensate their
employee in reasonable amount. They must provide minimum living wage to their employees.
They should provide sufficient salary so that employee satisfaction and loyalty towards the
company boost up.
Maintenance: HR manager is accountable for maintaining good and comfortable
working conditions of the firm. Employee's grievances should address efficiently. There should
be peace and harmony among colleagues. Tesco is a retail company. Tesco should provide
necessary allowances required by employees like travelling allowance, house rent allowance,
dearness allowance etc.
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Industrial Relations: HR manager must maintain good industrial relations. There should
be proper settlement of disputes. HR manager should consider collective bargaining of labours
and must aid in Joint consultation. In Tesco context, manager should develop a framework for
efficient redress of labour grievances.
P2) Strengths and weakness of different approaches to recruitment and selection
Tesco is an international organisation having its operations in many countries of world
that includes United Kingdom, Ireland, Poland, Malaysia, Thailand, India, Czech Republic,
Slovak Republic, Hungary, etc. Therefore to ensure uninterrupted and regular flow of operations
to keep a balance between demand and supply of manpower an effective workforce planning
becomes necessary for TESCO. Beside this, TESCO is operating a competitive market and to
grow in a dynamic environment TESCO require an effective recruitment and selection process in
order to hire right person at right job. A description about recruitment and selection process of
TESCO is provided below:
Recruitment- It is a process of attracting and grabbing attention of a right standard and
level of candidates to perceive them for applying for the vacant job position (Collings, 2018).
TESCO plc is having an approach of first looking in its internal talent to fill up a job vacancy
through analysing and evaluating its current list of employees so that decision regarding their
promotions and transfer can be made to fill a job vacancy internally. If TESCO not found any
suitable candidate for a vacant job through analysis of list of existing employees than it makes a
post about job vacancy through use of Intranet for two weeks so that employees can make
referrals for vacant job. Still to grab and attract a larger number of job applicant and better and
fresh candidates use of external advertisement is also made by Tesco through making use of
advertisements on its official website and also with the help of vacancy boards situated at all
stores. Beside this, Tesco also make external recruitment through the use of employment
agencies, college recruitments, E- recruitments, etc. to attract and get a qualified pool of
applicants who are interested and suitable for vacant job position. The strengths and weakness of
this internal and external recruitment process of Tesco are as follows:
Internal recruitment approach
Strengths Weaknesses
Provides a cost effective way and approach to Only a limited number of options and
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Tesco for recruitment purpose through
eliminating cost of advertising and induction
process.
candidates are available for Tesco through this
approach.
Increase morale of Existing employees that
lead to stronger workforce commitment for
Tesco.
Failed and unprompted Employees can feel
dissatisfied that can lead to conflicts in Tesco
plc.
External recruitment approach
Strengths Weaknesses
Enhance workplace diversity and fresh ides
through entrance of new blood in Tesco plc.
Cost of external recruitment is comparably
higher than internal approach.
Larger number of pool of candidates is
attracted to recruit an individual on the basis of
most job suitability.
Use of external approach of recruitment can
de-motivates internal employees of Tesco.
Selection- It is process associated with selection and making choose of most competent
and suitable job candidates form a large number of applicants. Use of job interview and
candidate assessment is made by Tesco for selection of a competent candidate, advantage and
disadvantage of which are as follows:
Interview
Use of interview approach is made by Tesco for selection process as it facilitates a direct
interaction and communication with an applicant to properly judge and check its skills and
strength.
Strengths Weaknesses
Provide a better opportunity to manger of
Tesco to ask probing question to check and
evaluate the skills and competencies of
candidates.
It is a time consuming process and it can also
be easily affected by biasness of Interviewer as
no written evidence is there.
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Assessment centres
Use of assessment centres are made by Tesco in its selection process as it yield a set of
several tests and practical stimulations to monitor and check the suitability of a candidate (Koch,
2018).
Strengths Weaknesses
Provides a better way to monitor and observe
the candidates while solving a practical
problem or situation.
A more time consuming and costly process and
require a well qualified manager to analysis the
performance of a candidate.
LO2
P3) Explain the benefits of different HRM practices within an organisation.
HRM practices are the resources by which the leadership quality will be developed
within the organisation. Through this practices human resource manager develops the motivation
in the employee's and also maintain some training and seminars lectures that boost the
employee's to perform even more better. It is a kind of practices in Tesco where the human
resource manager manages the compensation of the employee's, providing appraisal, take care of
health and wealth issues of the employee's, training and development, manages the performance
of the employee's and many more. These are the activities that are performed to increase the
overall performance of the company by which Tesco measures the growth and development.
Employer is the one who gave the job to the other and that is the owner of the organisation
whereas, employee is the one who works under the employer and get the payment of there work.
There are different benefits of the HRM practices of the Tesco that is gained by employee and
employer these are as follows as:
 Recruitment and selection: Recruitment and selection leads the high cost to the Tesco,
as they invest a lot of amount in the development of the employee. If employee left the
company then business suffers a lot of loss and to train the new employee need a lot of
time and funds (Liebregts, 2019). For that Tesco always fulfil the requirements of the
employee's and provide the valid appraisal to them by which they always stick to the
company. There are some benefits of employee and employer of Tesco that are defined
below as:
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Benefits to employee Benefits to employer
Employee's of the Tesco get the benefit of
turnover enhancement as company always
provides and fulfil all the requirement of the
employee's and that makes it even more
comfortable environment for them to work-in.
Employer of the Tesco also gets the benefit of
the turnover ratio as if the employee's get
sticks to the company then they always gave
their best and with that the overall performance
of the company will increased.
 Flexible services: HRM practices also helps the Tesco to maintains the flexible services
by human resource manger performs various functions like maintains the labour cost,
maintains the employment and salary trends, to balance the cost of training and
development, performs several motivating seminars, conducting events etc (Mendy,
2018). Thus these all activities need a budget to get performed that leads the success of
Tesco. There are some benefit that is gained by employee and employer of Tesco that are
as follows as:
Benefits to employee Benefits to employer
Tesco maintains the budget that includes the
development and growth of the employee's.
Budget all together involves the improvement
of the work-culture of the employee's with that
there is a enhancement of skills, knowledge,
experience.
Budget of the Tesco also beneficial for the
employer as it set the working standard and
also set the target under which they have to
perform all the activities. The set target or
goals makes easier conditions for them to
perform that helps to leads the performance.
 Training and development: It is the major HRM practices of the Tesco as training and
development comes with the new introduction of the technology within the business. It is
necessary for Tesco to trained there employee's as to match the competition of the market
and to gain the competitive advantage. It is major factor to lead the success as with this
Tesco reduces the production time period and business becomes more advanced that
increased the demand of the company in market place (Ogbonnaya, 2019). There are
several benefits of training and development that is gained by employee and employer
that are as follows as:
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Benefits to employee Benefits to employer
Training and development leads the major
benefits to the employee's of Tesco as they get
to enhance their skills and knowledge towards
the new advancement that increase the overall
performance of the employee.
Employer of Tesco gets the benefits of training
and development as that increased the
confidence and also builds the satisfaction
level as they get to learn something new that
motivates them to work with even more
consistency.
P4) Evaluate the effectiveness of different HRM practices.
There are different effectiveness of the HRM practices that enhance the profit and
productivity of the Tesco. As HRM practices measures the different activities like compensation,
employee's retention, managing the appraisal system by measuring the performances etc.
Effective outcomes refer that HRM practices lead the success and growth to the company by
proper utilising of all the required resources (Paauwe, 2018). HRM practices of the Tesco
measures the favourable outcomes that provide the benefits to the business in term of increment
of market share. There are different activities that raise the profit and productivity of the Tesco
these are as follows as:
 Enhance employee's participation: HRM practices always works to enhance the
performance of the employee's by which company gains the profit. As employees is
the key factor of the success of the company. HRM practices affects the effectiveness
of the employee's as by providing training and development to perform different
activities by which employee's performance has been enhanced. Thus that always
increased the participation of the employee's as much employee gets involved in the
activities that much they measures the growth and that directly affects the profit of
the Tesco (Impact of HRM on productivity,2017). Growth of the company depends
upon the workers they are the one who increase the profit and productivity of the
company by their effective performance.
Strength Weaknesses
It could develop the better and positive
environment within the company that
Sometime it create the massive
complexities as everyone wants to show
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develops the profitability of the company. their presence and for that try to overcome
one after the other.
 Increases the motivation: It is a factor that directly affects the performance of the
employee's. The much the employee's get motivated that much the performance
increases. Motivated employee perform their work with more consistency with that
they always work in an effective manner by which the profit and productivity of the
Tesco increases.
Strength Weaknesses
It brings the positivism within the company
as employee works with more commitment
that raises the profit of the company.
It might brings the overconfidence by
which employee didn’t perform their work
with same zeal.
 Compensation based on performance: Tesco provides the compensation of the work
of the employee's according to their performance. That all is handling by the HRM
department that collects all the relevant data of the employee's and that is collected
by 360 degree appraisal, getting feedback from the other colleagues etc. If employee
gets the output of their work they perform their work with more efficiency and that
provides the profit and productivity to the product and services of Tesco.
Strength Weaknesses
In this Tesco provides the rewards to the
employee as per their performance that
improvises the working behaviour of each
employee.
In this after getting the reward it might that
performance of the company will get
affected and brings negative changes
within the company.
There are two different HRM practices as like training and development and the rewards
performance. It increases the effectiveness of the Tesco as HR brings all the appropriate changes
within the company that raises the profitability of the company. The HR practices get enhanced
the profit and the productivity of the Tesco by influencing the working environment of the
company.
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LO3
P5) Analyse the importance of the employee relation that influence HRM decision-making.
Employee relation shows the effectiveness of the process of communication between the
team or team members (Perritt, 2019). It is a relationship between the employee and the
employer that is manages by the Tesco. The good employee relation builds the confidence and
morale to the employee by whom they works with more consistency and they get attracted
towards the accomplishment of the goals of the Tesco. Decision-making is the process in which
different decision has been made that increases the morale of the employee's and provides the
growth and success to the business. If employee relation become strong that positivity affects the
growth of the organisation whereas, Tesco always satisfies there workers by which they perform
with more effectiveness. Employee's relation influenced the decision-making process of the
HRM as Tesco provides the opportunities to the employee to share their opinions and views as
they believes that with this the relationship between the manager and employee become more
effective and that generate the positivity in the work-culture. There are several importance of the
employee's relation that influence HRM decision-making that are as follows:
 Productivity: Strong relationship of the employee's brings the positive environment that
motivates the workers to work-in. Tesco invest a lot to build the relationship between the
employee's as it increases the productivity and for that they conducts different activities
where participation of the employee increase and also build the trust and belief in the
employee. And if employee have faith and believe in each other than that increases the
productivity of the company's product and services.
 Employee loyalty: It is a factor that is raised by the employee relation, as much the
people believe in each other’s work that much their loyalty towards the company
increases. It also lowers the employee turnover ratio that shows that Tesco have the
skilled and experienced employees (Reiche, 2018). Thus it is an importance of the
employee relation that increases the employee's loyalty that helps the Tesco in terms of
retaining of employee.
 Reduction of conflicts: If employee's have the best relation then that reduces the
conflicts that is raised when there is misconduct of communication in the business. Less
conflicts in the business leads the success and growth as targets can be achieved within a
period of time without any misconducts.
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P6) Identify the key elements of employment legislation.
Employee legislation is the right of the employee that provides them a freedom to work-
in any environment. These are the elements that directly or indirectly affect the work-culture of
the Tesco and with that include the different factors under which employee's feel comfortable to
work-in (Stewart, 2019). Employee legislation affects the decision-making of the Tesco as
different rules have been made according to the ongoing conditions that affect the mentality of
the employee's. Tesco is a UK based industry thus they follows “The Employment Right Act
1996” and includes key elements and some of that is defined below as:
 Equal employment opportunity: Tesco didn't differentiate in there employee's and
provides equal opportunity to the entire employee's to measure the growth and
development.
 Sexual harassment: It is a unbiased condition that is generated when company provides
the rewards in terms of favouritism or based on gender wise. Whereas, Tesco doesn't
differentiate their workers in term of gender biases and provide equal platform to all.
 Working time regulations: It is a condition that defines that workers will work for the
specific period of time. Whereas, Tesco also fixes the time period as workers only work
for about 8 hours and 48 hours in a week.
 Wages and remuneration: Tesco provides the wages and the remuneration according to
the job profile and the educational background and provides the minimum pay to all.
 Safety and health: Tesco manages the safety and health of the employee's by providing
proper canteens, crèches, hospitality services, maternity leave etc.
LO4
P7) Illustrate the application of HRM practices.
HRM practices of the Tesco intend the different function as attraction, motivation,
retention, and remuneration etc. of the employees for to gain the growth and development
(Treweek, 2018).
a) Identification of a skills gap and job requirement
Tesco post the vacancy for the marketing manager and for that they need a highly skilled
and qualified candidate for that profile.
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b) Job specifications
Tesco has the recruitment for the marketing manager and for that job description and
person specification is described below as (Walsh, 2018):
Organisation: Tesco
Section: Administration division
Designation: - Marketing manager
Job Address: England, UK
Job summary
The candidate must be able of to manage the marketing strategies by which they satisfy the need
and demand of the customers that further helps the company to improvise their sales and profit.
Role: -
Maintain customer feedback
Customer relationship management
Market Analyst
Supply efficient market knowledge to business
c) Person specification
Person Specification
Position: Marketing Manager
Functional unit: Administration department
Reporting to: HR Manager
Attributes Essential Desirable
Qualification & Experience The candidate should have
completed graduation
In the retailing industries the
candidate must be post
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marketing management with
75% marks from a
acknowledged university and
have the one year experience
of marketing.
graduated and also have an
effectual communication skills
and good knowledge.
Skills or Noesis For the improvement of
customer relation service the
candidate must have effective
communication skills by
which they manage the
marketing management in
efficient manner
The candidate must be able to
of accepting multiple
challenges and have the
capability to lead the team and
modify the marketing
strategies.
d) Advertisement for Job
Job Advertisement
Requirement of Marketing Manager
Administrative department
For the post of marketing manager the candidate are invited and applicants should handling HR
team and with deal and manage the different concepts of market in an competent way.
Eligible candidates should have following skills to go for this job-
1. Graduation with 75%from recognised university.
2. Minimum 1 year experience.
3. Must have brilliant communication skills.
Time-scales
Inviting applications from candidates 5-8 February, 2020
Short listing of applications 10-12 February, 2020
Interview date 15-18 march, 2020
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e) Job related interview question
It is a list a question that has been asked to the candidates for the prospects of interview
Interview questions
Q1) What do you understand by the marketing manager?
Q2) Why do you choose your carrier as a marketing manager?
Q3) If you become a marketing manager how do you manage the market?
Q4) How do you develop your interest in this field?
f) Offer letter
Job offer letter
18th February 2019
Nick Jones
Tesco
Dear Nick Jonas
We are extremely impressed by your skills and qualification and thus offer you to join
the post of marketing manager on 18th February 2019. So please join us on the date. Please
carry your official documents along with you.
We are excited to meet you.
Best regards,
Victoria smith
CONCLUSION
It has been concluded from the above discussion that HRM brings the talent and the skills
by which Tesco achieved their objectives and it is also responsible for workforce planning. In
addition to this the different recruitment and selection approaches that have different strength
and weaknesses that affects the growth of the Tesco. There are different benefits of the HRM
practices to both the employee and employer that raise the profit and productivity of the Tesco.
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There are different importance of the employee relation and employee legislation that affects the
decision-making process of Tesco.
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