Human Resources: Organizational Structure, Workforce Development, and Change Management at Tesco

This report discusses the organizational structure, workforce development, and change management at Tesco. It analyzes how Tesco maintains, motivates, and develops a dedicated workforce, and explores emerging HR developments with examples. The report also provides recommendations for improving sustainable performance within the organization.

HUMAN RESOURCES

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Organizational structure and in relation to sustainable performance of organization.................3
Approach for maintaining, motivating and developing a dedicated workforce...........................4
Analysis of emerging HR developments with examples.............................................................5
Conclusion and recommendations based on to improve sustainable performance within
organization..................................................................................................................................6
Background to change management............................................................................................7
The role of HR in managing change and organizational design..................................................8
Different types of changes that impact organizational design.....................................................9
Relationship between organizational design and change management.......................................9
Recommendations for taking changes and implement them efficiently......................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Human resources are the department in business which useful for finding, recruiting,
training job applicants well as manage employee benefit programs. Its main role is to improve
the overall performance of employee which bring better company function. HR services are
concerned with managing and developing in the organization. Companies having well-
established culture of employee empowerment allows their employees to adapt quickly
organizational requirements and change expectations. Organizations where the power is
concentrated on the firm to provide an appropriate outcome in slower terms because it takes
more time and efforts in order to get consensus over the top down changes. Well designed
companies requires less transition support especially during disruptive changes. For this there are
many factors that affects the company decision.
TESCO is the retail industry which deals in grocery and clothing with variety range of
products. This report will analyse about two different approaches which is used to attract,
maintain, motivate and develop a dedicated workforce department. It would be discussing the
emerging HR developments and how the organization adopt HR practices in changing of
external and internal workplace environment (Di Vaio and et.al., 2020). Furthermore, it will also
discuss the aspects of change management, role of HR into managing change and organizational
environment, evaluation of different types of changes which impacts organizational design,
complex relationship between organizational design and change management along with
recommendation over the ways in which the company can adopt changes in order to mover
forward.
MAIN BODY
Organizational structure and in relation to sustainable performance of organization
TESCO PLC belong to retail industry and it is British international groceries and general
merchandise retailer situated in Welwyn Garden City of England. There are stores in five
countries across Europe, it is known as market leader of groceries in UK. In 1950 and 60s the
company was grown up organically, also through acquisitions by the time it owned 800 shops.
At that time TESCO started to expand the variety range of its products including household
goods and clothing. With time, it has covered big space in retail industry and grown with
introducing various stores and now it has become very popular company in UK.

The company follows hierarchical organizational structure where the positions are further
divided in various parts or categories to enhance the work to be performed efficiently and
smoothly. The reason of using hierarchical structure is organization is very huge and having
multiple layers within it (Gonzalez, Gasco and Llopis, 2020). There are many people in this
category such as human resource director and manger, recruitment officer, officer for training
and staff development, HR administrative assistants etc. In top-level of hierarchical structure
there is regional manger who look for the management systems below the line. Also, he ensures
the proper functioning and operation of the whole structure. At second level it has store manager
who keeps an eye on everything in store including working employees. There are three managers
at third level according to sections in store like food trading, non-food and personal manger.
Non-food trading mangers deals with sections of clothing, electronic and other things. Fourth
level there are subordinates for the food mangers, non-food manager, and personnel manager. In
relation with this sustainable performance will lead to improve as the company follows
hierarchical structure which enhance their performance. Apart from that Little Help Plan is the
tool to maximize the long term approach, as it increase the performance within operations and
wide supply chain on issues (Tyas, Sunarto and Naibaho, 2020). This is divided in four terms
people, planet, product and places with making a difference in issues of health, diversity and
inclusion, climate change and food poverty.
Approach for maintaining, motivating and developing a dedicated workforce
Human relations management is the term which shows employee productivity and
motivation can be exaggerated by positive bonds at workplace environment. It shows
improvement of working conditions forms increasing productivity (Eknath and Janardhan, 2020).
Organizational behaviour theory is applied to functions of HRM which helps to understand
how people in working environment think, observe, and feels. Organizational behaviour consist
of research areas regarding improving performance in work which boost up motivated and
developed workforce. On the basis of this theory the positive changes can be brought in the
workforce departments which could be beneficial for the company growth also, it is useful for
bringing the overall effectiveness of organization. There are some negative aspects of this which
can be occurred due to management takes over complete control while there is no option to form

creativity. This would be challenging for organizations to work over improving productivity,
hiring employee who can fit in the culture.
By the Employee Motivation Technique, TESCO interrelation of each department is
necessary for achievement of organizational goals. In this manner the company works extremely
well and it has great performance in the retail, each department are concerned with each other in
following the terms of as per their work and guidelines (Tambe, Cappelli and Yakubovich,
2019). In elaborating to motivational theory, it is way of creating amount of passion for getting
organizational goals which is maintained by fulfilling the needs of the individual. Motivation of
employee is must for optimization of productivity to them and these are related to employee
motivation technique. For achieving this goal the most important way is to form right
motivational resources as with successful management as motivation has impact on employee
performance. Motivation comes from providing employee rewards, recognition, career
advancement, feedback etc for their performance motivated employees are more productive
which mean more profits. On positive note it seems to be profitable through individuals get
motivation from respective managers and it results to growth aspects. It has disadvantage like it
is time-consuming and costly setup process which can't be afforded by the small business. Lack
of information about the employees effects the HRM system and proper database is essential
before implementing. For Tesco it works positively as it can manage the motivation of employee
and hiring with improving employee relations and it is related to employee growth approach
(Trost, 2020).
Analysis of emerging HR developments with examples
Emerging HR trends are used to carry out the hiring of employee with getting to know
about their skills. With changes in technology the change in hiring procedures has also
introduced to great level. Without skilled individual, company suffers from financial loss, poor
customer service and poor reputation. For instance, there are many emerging HR trends like
reskilling and upskilling, hybrid work model, cyber security, making the human touch
more alive. They can react to new trend paying attention to target market, employee
requirements, embracing change with market develop. The modern growth of development has
increased of making use of video conference for the meeting or sharing the views easily anytime.
This process saves time and many organizations make use of this for their working purpose.

Reskilling includes learning new skills whereas upskilling is to specializing in core skill, better
execute company policies are based on market or industry trends. Cyber security it has become
even more important because the technologies keep the interrelations of human touch alive and
use of Cyber Security is important for personal security (Sukawati and et.al., 2020).
The new technology in Human resource management is method of remote working,
interviewing and hiring has made HR managers and job seekers to use new digital tools. New
technology makes operations more beneficial by enhancing the hiring process, automating
routine task, training of employees, managing information. Mostly organizations has started to
use this technology specifically artificial intelligence as part of daily task. External factors lies
outside the organization and affects working involving Human resource management. Internal
factors lies inside the organization which has effect only on HRM. Focusing on enhancing
individual experience new practices should be implemented which rises from job satisfaction to
keeping them in dedication for work. Disengaged workforce cost major amount to companies
which brings circumstances to low productivity, profitability and absence of work. Engaged
workforce is totally opposite bring advantages in better business outcomes (Bilgic, 2020). With
this new trends changes will work in both external and internal workplace environment.
Conclusion and recommendations based on to improve sustainable performance within
organization
By this discussion it can be said that the performance of organizations is important aspect
because their overall performance and the employee behaviour enhances efficiency and
productivity. The substantiality is related with the organization structure of Tesco which follows
hierarchical structure. It is important as Little Help Plan add vale to the company approach to
substantiality. It works as delivering the purpose of servicing to shoppers and being responsible
and sustainable for stakeholder, community and planet. In Tesco sustainable performance is
improved as they manage to seek attention within working environment, and they have
introduced Little Help Plan for long term approach to sustainability. They are on better position
by following their plan for monitoring the performance within organization. It is consisted of
four parts which are Product, People Planet and Places for solving the issues like diversity and
inclusion, sustainable diet and food poverty. The plan also includes commitments of destructing
deforestation from Tesco products and making packaging recyclable. In the discussion about the

four steps for People, it will look after for colleagues and human rights. In Product, they
implement healthy sustainable products, taking care of food packaging and food wastage
(Petrova and et.al., 2020). In Planet the company will work for the environment and farming
sustainable agriculture. Places the company will provide to community and donate for charity
apart from that distributing food to the needy. It overall boosts the sustainable performance
within the organization.
Background to change management
Change management is a type of systematic approach in order to deal with the transitions
or transformations of an organization's processes, goals and technologies. The primary purpose
of change management is to implement appropriate strategies for effecting the change control
them and assist people to adapt those changes in fruitful manner. In order to adapt certain
changes, the company requires to make the shift from structured development programs which
are set into a top down hierarchy organization to agile, collaborative and adaptive companies
under which the workers have self-directed (Ozmen, 2019). Tesco is the firm who frequently
changing their organizational structure in order to bring new and innovative strategies to
compete into the dynamic environment. In order to elaborate the concept in detail, related
theories and models are described below:
Lewin's change management model
As per the views of Lewin majority of the people resist towards changes to an
establishment. In order to implement changes, the managers need to take several steps such as:
 Unfreeze: At this stage, the Tesco detect the issues and problem within the management.
Since the problems are detected, manager will communicate and collects data or
information to bring out changes within the firm.
 Transition: Managers of the Tesco take necessary actions and try their best in order to
implement changes as per the problem diagnosed (Adam and Hanafi, 2022). Moreover, it
also allows to assess the risk associated with the change into management as well as
accordingly make plans and policies.
 Refreeze: Managers of Tesco take the follow-up actions in order to check the
effectiveness of the plans that are implemented. The company learn from the

consequences and further take actions accordingly in order to establish the change within
the firm.
McKinsey 7s model
 Strategy: Tesco managers need to take proper directions and vision over long run.
 Structure: The responsibilities and the jobs within the Tesco split into proper segments.
 Shared value: This is the significant and connective part of among others as it shows the
Tesco beliefs along with their implementation procedure.
 Systems: Allocation of resources has been done for implementing the strategy.
 Style: The areas in which the Tesco works highly affects the the working environment of
Tesco.
 Staff: A limited number of skilled workforce is required in order to implement each task
into consideration.
 Skills: The skilled and large number of employees is an asset of the Tesco.
The role of HR in managing change and organizational design
Human resource management have multiple roles and responsibilities in order to manage
change. They have to implement changes because sometimes it is required by outside
environment which involves changes in policies due to safety requirements. HR personnel has
the major role in order to ensure about the change that is being identified carried and developed
out in a respectful manner. The behavioural competencies allow the HR managers through things
like relationship management, consultation, critical evaluation and leadership by providing
appropriate navigation to their employees. The role of HR in Tesco needs to be as change agent
in order to fulfil the requirement of planning the right changes with consultation with other
executives as well as with senior leaders (Paquibut and Al Naamany, 2020). The changes that
has been made by the HR personnel are long termed structural changes. The driving forces
behind such changes is completely the company requirements and leadership but in order to
make sure about the fact that the changes actually takes place into practical terms and thus the
transformation has to happen from the bottom to top line of the management. Hence, the key role
of HR involves that organizational strategy and culture are aligned as without proper alignment
the disconnections will fail into failure irrespective good strategy and culture.

Different types of changes that impact organizational design
Tesco is among the leading grocery store among the UK but with the changing
environment, the company requires certain modifications by using transformation changes in
terms of using technology into their business to make it differentiated from other companies. The
firm introduces technology into diversified activities in order to make their services effective
enough to address all the requirements of the users. It includes providing online grocery platform
to their users, implementation of a digitalized in store experiences, development of Tesco club
card which is a data driven customer loyalty scheme and other similar type of activities.
In context of psychological changes that has been incurred by Tesco into consideration is
related to provide store signage along with splitting the area into sections which involves beef,
lamb, pork, etc. at one side and other necessities at another section. Moreover, they also adopt
the kind of pricing strategy by also provide them special offers which provide the customers to
the value for money using unit prices rather than comparing it fixed weight item (Whysall,
Owtram and Brittain, 2019). In short, it acts as a people centric organizational change approach
within which the changes have been incurred for the betterment of people as it includes new
hires, changes into roles and responsibilities and providing employee training for the
development of appropriate skills.
In general there are six key elements of organizational design which includes:
 Work specialization: Work specialization illustrates the overall task of the company that
has been divided into smaller parts. It is basically broken up of job tasks into smaller
parts that needs to be performed by diversified people.
 Departmentalization: After the job specification with the help of job specialization
process which consists of five common forms of departmentalization such as functional,
product, geographical, matrix and customer departmentalization.
 Chain of command: It describes about the authority and power of establishment that has
been used and delegated from top management to the lower level ones.
 Span of control: It defines as the number of employees reporting directly to the
supervisor as it completely describes the number of employees that a manager can
appropriately and effectively manage.
 Centralization vs decentralization: Centralized organization is described as if the top
managers make the company's key decisions with little or no input from below level. On

the other hand, the decentralized can be described as the spread of power away from the
centre to local branches or government authorities.
 Formalization: It is the extent to which employee behaviour is guided with regulations
and processes. The high formalized establishment is considered as strict ones while low
formalization represents it as less stable ones.
Relationship between organizational design and change management
Organizational design is about the ways in which the company achieves its major purpose
with the help of function, design, structure and processes. While on the other hand the change
management refers to the company desires in order to achieve desired future state from their its
current state with minimal disruptions or negative impacts of the organization (Crestani, 2018).
For instance, the Tesco adopts hierarchical organizational structure in which the positions and
obligations are divided into various parts to make sure that the work will be done appropriately
along with appropriate implementation of new technology as well as change in their culture
which shows the appropriate example of change management.
Recommendations for taking changes and implement them efficiently
In order to implement appropriate changes into consideration, the companies required to
make plans carefully, become transparent as much as possible, tell the truth, communicate each
and everything, provide appropriate training sessions, invite participants, never expect to
implement changes in just overnight manner, monitor and measure the changes, demonstrate
strong leadership, etc.
CONCLUSION
By this report it has concluded the organizational structure of TESCO and its relation to
sustainable performance. It had critically analysed using the two human resource management
theories for maintaining, motivating and developing a ordained workforce within organization.
Apart from that the analysis of new HR developments is done with their relations of HR
practices for fast changing external and internal workplace environment.
Further, at last conclusion and recommendations are drawn on ways of improving the
practices of sustainable performance within organization. It also elaborated that change

management plays a major role as it helps the firm to assess and understand the requirements and
impact over the change. Furthermore, this also enable the Tesco to align resources into
systematic manner within the business in order to support the change, manage the diverse cost of
change along with reduces the time required in order to implement the changes. Apart from this,
the study also highly able to understand the role of HR people while doing the changes along
with appropriate recommendations in order to apply changes into most effectual manner.
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