IHRM and Organizational Structure of Tesco Company: A Critical Analysis

INTERNATIONAL HUMAN RESOURCE MANAGEMENT
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The essay is based on IHRM with respect to Tesco Company in the context of the United
Kingdom. The purpose of this essay is to highlight how IHRM is in alignment with the
organizational structure of the Tesco Company to do successful business. IHRM stands for
international human resource management and it plays a key role to get success when it is
aligned with the company's organisational structure. The essay discusses how the owner of Tesco
is able to make use of IHRM in its organisational structure to gain success nationally and
internationally.
Tesco plc is also known as Tesco and it is a multinational retail company based in the United
Kingdom. It is headquartered in Welwyn Garden City in Hertfordshire located in England and it
was established in the year 1919. The stores of Tesco are present not just in Britain, but also in
other countries, such as Europe, Asia, Hungary, and Thailand and so on. Jack Cohen was the
one, who had founded the company in 1919 just as a group of some market stalls. Tesco plc has
been expanding its business operations in distinct countries by taking the right business strategies
and by increasing its workforce per month. In 2017, this company had a total amount of
workforce of 460, 000 employees and it had a hefty amount of £1.208 million in the year 2018
(Tescoplc, 2017). This company has been successful enough to spend over 100 years in Britain
and in other countries due to its successful organisational structure Tesco plc is listed on the LSE
that is London Stock Exchange and it is present in FTSE 100 Index too. At present, the CEO of
this company is Dave Lewis and John Allan is the chairperson of the board.
The organizational structure of Tesco plc is following a hierarchical structure in keeping mind
the alignment of international human resource management of this company. The people, who
are working in the higher part of Tesco Company has major responsibilities to run the company.
Dave Lewis is the CEO of this company and the board's respective chairperson is John Allan, a
director is Mark Armour (Tescoplc, 2019). The other directors incorporate Melissa Bethell,
Stewart Gilliland, Steve Golsby, Byron Grote, and Michael Ohlsson. On the other hand, there are
other directors in the organizational structure, who try to expand this company by doing their
duties. The directors incorporate Deanne Oppenheimer, Simon Patterson, Alison Platt, and
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Lindsey Pownall. In Teso plc, it is the duty of the chairperson of the board to keep into
consideration the interests of every Group members, different stakeholders and so on. In
addition, it is a chairperson's duty to promote the high standards of corporate governance. This
company has its main shareholders and they are BlackRock Inc. Norges Bank and Schrodes plc.
BlackRock, Inc. consists of 6.64% of the holding of Tesco plc, Norges Bank has 3.99% of
holding and it has 4.99% of holding for Schroders plc (Tescoplc, 2019).
The chief executive of the company is leading the work of taking strategic direction by making
implementing the right strategies. Chief executive does the internal controls of Tesco Company
after doing management of risk profile of this group. A chief executive of Tesco's organizational
structure has to make sure that communication is done effectively with every shareholder. The
non-executive directions work together along with the directors to handle the IHRM of this
company on a timely basis. The non-executive directors have enough experience and skills to
offer a constructive challenge, analyze the overall performance of employees to create better
strategies in the workplace. The senior independent director is known by the abbreviation of SID
this company's organizational structure. The meeting is done mainly with an independent
director and the chief executive at least once a year to make distinct strategies. The company
secretary of Tesco plc is mainly having a duty to develop, implement and maintain the high
standards of corporate governance. Moreover, the Tesco Plc Board consist of distinct board
committees, who handle IHRM of this multinational company and it incorporates nominations
and governance committee, audit committee, corporate responsibility committee, disclosure
committee, and remuneration committee.
Some issues of IHRM in the company have affected the global performance of Tesco plc over
the years. There are many organizational structures that have been shaping the company so far,
however, the organizational structure of international diversification is stopping the growth of
this company. This branch of organizational structure, its effect from IHRM and the issues
resulting from this branch has been discussed. One of the main issues that are hampering
international growth of Tesco Company is its lack of presence online and this company is facing
issues trouble to continue its stores in Britain too (Tandoc and Vos, 2015). The issues in business
in the overseas market had started to happen since the year 2013. In 2011, Sir Terry was working
in the job position of chief executive in Tesco and fir 2 and a half years, his strategy had
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