HRM2003 Managing Human Resources: Performance, Retention at Tesco

This report provides an analysis of performance management and employee retention within the context of Human Resource Management (HRM), using Tesco as a case study. It discusses the advantages and disadvantages of various performance measures and recommends strategies for dealing with poor performance in the workplace, including feedback processes, regular follow-ups, and employee recognition. The report also examines the impact of employee turnover, reasons for employees leaving organizations, and issues related to talent management, such as inadequate compensation, flawed hiring processes, and the need for ethical standards. Furthermore, it explores the advantages and disadvantages of staff turnover in both large and small organizations, emphasizing the importance of employee engagement and retention for maintaining productivity and a positive company image. Desklib offers a wide range of solved assignments and past papers to aid students in their studies.

Managing Human Resources

Table of Contents
Introduction......................................................................................................................................3
Main Body.......................................................................................................................................3
Managing Performance .........................................................................................................3
Retention.................................................................................................................................5
Conclusion.......................................................................................................................................8
References .......................................................................................................................................9

Introduction
Human resource management is (HRM) is the approach to the management which
comprises of variety of activities such as hiring and training the suitable employees in order to
enhance the level of productivity at the workplace (Aguenza and Som, 2018). The company
chosen for the project is Tesco, which is one of the leading retailer in the world and it is
operating globally . It is a well known company and it serves a broad and diversified base of
customers as it does not depend on a single segment of the market. The report will cover the
understanding of the performance management as performance management is a continue
process of communication between the management throughout the year and provides support in
various segments like setting up of objectives in the organisation and reviewing the results. The
purpose of the report is to measure the advantages and disadvantages of different performance
measures (Amos, Musa,and Au-Yong, 2019). Along with it, the report will also recommend
preventive solutions for improving the poor performance at the workplace.
Main Body
Part- A
Managing Performance
Performance management
Performance management is said to be the tool of the management that can be used to monitor
the level of performance at the workplace. It has main focus on the transparency and
accountability in order to have clear understanding of the expectations. Due to this, the
performance can be improved by achieving the goals that can be done by developing the skills
and abilities of the people. It is considered to be the crucial aspect in the HRM and its main use
is to create a work environment in which the people feel motivated so that they can contribute
the quality work to the organisation (Aureli and Del Baldo, 2019).
Advantages and disadvantages of various performance measures
The advantages of using various performance measures are as follows-
 The performance measures can enhance and motivate the level of productivity of various
individuals and groups within the organization. With the help of clear goals, one can set
some specific standards for the measurement of success and the management can adopt

various steps in order to achieve the targets and objectives (Bibi,Ahmad,and Majid,
2018).
 Another advantage is that, it improves and elevates the level of communication. As lack
of communication can bring confusion in communicating with the team members and
employees.
 It also helps in providing a clear chain of command as it can be said that in case of
performance measurement, everyone has their own role to play and duty to perform.
Clear commands allows to reduce the confusion which can occur sometimes within a
team. Each individual and team has a defined space and they know about their duties &
work. When the goals are clear so, it can become easy for the management to achieve them and
take preventive measures towards it. Due to various performance measurement, it is very
easy to identify the underperforming employees and the teams.
Disadvantages of various performance measures are explained below-
 Sometimes the measures are not easy to understand for the people and it requires a lot of
time. Due to this employees become demotivated as they feel unappreciated so, the level
of motivation declines which in the end leads to lower engagement and lower
performance rates
 It can also be said that if the performance management system is unfair and invalid then,
the employees are more likely to become dissatisfied and demotivated in their job
roles. One of the main drawback of the performance management is the low morale
because the employees feel
 In addition to this, if a employee performs well then feels that they were treated badly or
unfairly then, they lose hope and motivation to work with the company. Even if the
employee do not leave the company, they may become uninterested in the tasks of the
company.
The performance measurement methods are described as a tool to measure the various
factors and indicators to set up whether progress has been made while achieving predetermined
objectives and goals (Cavicchi and Vagnoni, 2018). As it helps in monitoring the various
budgets of the progress so that the organization can realise the importance and how the
workforce is functioning individually or in a team. Organizations have also understood the

importance of implementing the concept of performance measures in their system in order to
bring more growth and development (Dechawatanapaisal , 2018).
Ways to deal with poor performance at the workplace
Performance management plays a major role in elevating the level of productivity at the
workplace by making use of the team's potential (Holtom and Darabi, 2018).
. It also supports in motivating the employees and making a positive environment in order to
meet the desired goals. List of strategies to deal with poor performance at the workplace are
explained below-
 The company can make use of the feedback process through which the management can
get to know about the honest review of the employees. As miscommunication can
adversely affect the performance at the workplace. That is why having a genuine
conversation with the employees can provide the new opportunities to work together and
bring out the best solutions.
 Another way that can be used to enhance the level of performance is keeping a proper
follow-up of the employees that can be done by conducting regular meeting with the
employees with the aim of discussing their performance and various abilities to improve .
 One of the effective way that can be used is by offering rewards and recognition, the
company can motivate the employees by giving them rewards so that they can achieve
consistent improvement in the performance.
 The company should also understand the situation of the employees by considering the
needs of the employees as there can be various reasons for lack of performance that can
also depend upon person to person. It happens sometimes, employees are not able to
perform better due to their personal life issues or stress so, the chosen company can adopt
preventive measure for such issues that is the company can conduct counselling sessions
to make sure they feel good and perform better in the organisation
Part-B
Retention
Employee retention is considered to be a process through which the employees are encouraged to
stay in the company for a longer period of time. Employee retention is important for the
company and employees both and the employees are considered to be the vital asset of the

company. When the employees are not heard and valued then the employees will not be able to
use their full potential at the workplace ( Hom , Allen and Griffeth, 2019).
Impact Employees leave an organisation
Organisations are required to keep the employees engaged so that they can stay and remain in the
company and if they leave the company that will directly affect and reduce the profits of the
company. Moreover, the image of the company will also be negatively affected due to employees
as the company has to miss the deadlines and lead to bring the new level of stress at the
workplace ( Kaydos, 2020)(Lee, 2021). Company will have to face no growth and opportunities
in their working and it will bring negative impact on other employees of the organisation too.
Also, when the employees leave their jobs, the entire team now has to share the responsibilities
and work in order to fill to gaps (Lee and Chen, 2018). When a important employee leaves an
organization, it can affect the morale of other employees and make them uneasy about their own
situation. Employees leave their jobs for various reasons as there are various ways for leaving a
job for example family issues, health issues, lack of opportunity, work life balance, relationships,
less growth and many others. Various reasons are explained below-
 One of the main reason is the lack of appreciation as employees do not like working for
such companies that rarely gives recognition for the efforts of the employees. The
employees will search for new job where they feel valued.
 All the companies have different kind of environment and if the company is not
providing the job opportunities, lectures, workshops, seminars that leads to affect the
feelings of the employees as feeling fulfilled is an important aspect of life for the
employees.
 When the employees feel they are underpaid as per their work done that move them to a
new job where they can be paid well and as per performance.
 If the policies of the workplace are not flexible and suitable for the employees that it can
be a challenging task for the employees. As there are many companies which are offering
better opportunities with benefits too.
 Employees need a better work-life balance for having time for their families and friends .
When the manager contacts with the employees after the working hours and it will
directly affect the personal time of the employees. They search for new job so that they
can enjoy the work-life balance again.

 Employees prefer a financially secure company that offers a good salary, flexible
working hours, new opportunities and margin for growth so that the employees can feel
confident in the company.
 Sometimes the management of the company keeps an eye on the employees and keep a
track of the everything they do. That is why, the employees want to feel more
independent in their job roles and to have a chance to figure out the things on their own.
Understanding of the various issues of retention of employees and talent management
Various issues of retention of employees and talent management are caused by various factors
and the company is required to take preventive measures to stop the turnover and the
unfavourable effects on the team and management (Narayanan,Rajithakumar and Menon, 2019).
Most employees leave for related reasons, and when they do, it brings an extra burden to the
team and the management as a whole. Here are some common issues of retention of employees
and talent management are explained below:
 Employees will keep looking for job if they are paid well and in absence of right
incentives. In the salary, some employees look out for various benefits that is paid sick
leave, health insurance and retirement benefits.
 Another issue in the talent management is hiring the wrong candidates in the hiring
process. It is important for the companies to choose the right employees who can
contribute more and being more productive for the company.
 Along with it, one of the major challenge in the talent management is the setting
standards for ethical behaviour, increasing transparency and reducing the complex
process with the aim of developing a culture of appreciation and reward.
 The new challenge in the talent management is related to the training and developing the
performance of the people who work on a contractual or project basis. It is considered to
be the main issue.
Advantages and disadvantages of staff turnover in both large and small organisation
The term staff turnover is defined as the percentage of the number of the employees who can
leave the company and then replaced by the new employees (Perreira, Berta and Herbert, 2018).
It can be calculated and measured on a yearly basis and it may also create a negative impact on
the organisation as it affects the level of productivity at the workplace. There are various causes

for the employee turnover such as lack of opportunities for career development, overworked, life
event, toxic work environment, lack of work life balance and many others.
Advantages of staff turnover in both large and small organisation are explained below-
 Employee turnover does not cause negative impact on the organisation because it allows
various opportunities to be more productive in the organisation.
 When the long term employees leave the company that tends to allows the company to
not provide high wages to the employees. The company can start over with the new
employees by paying normal salary. As the new people join the company they also bring fresh perspective to the organisation
that leads to bring new ways of operating the business.
Disadvantages of staff turnover in both large and small organisation are explained below-
Here are some of the negative effects of the staff turnover in the organisation are explained
below-
 It can impact the brand image of the company in the market that can be a drawback with
a negative impact. It will be difficult to recruit qualified candidates to the organisation
and the money invested on the employees will be wasted for the growth of the company.
 High turnover is expensive for the organisation because under this the company has to go
through the training process of the new employees. It can become one of the toughest
task to pay the previous employee, hire a new one and train the others. Still, the
employees will not be much experienced and this will result in low performance, lack of
loyalty and confusion in the company.
 When the company has high turnover then the morale of the employees will be affected
and the whole business is affected because this happen all of a sudden. Sometimes, this
may lead to bring drastic impact on the customer relationship. It can reduce the level of
trust on the organisation.
In reference to the chosen company, it can be said that the company uses various programmes to
explore and train the employees so that they an contribute more to the company and bring more
potential in order to develop the talent of the company. Such programmes comprises of various
talent-building skills workshops and various coaching techniques to develop the capabilities of
the employees.

Conclusion
From the analysis of the above presented report, it can be said that human resources are
responsible for training the staff. It can be defined as the workforce of the organisation who are
responsible in motivating the employees in order to serve more to the organisation. It can also be
concluded that there various ways to manage and enhance the level of the performance at the
workplace. As the performance measures can be taken to improve the level of productivity of
individuals and groups within the organization. That can be done by making clear set of goals
so that employees can benchmark some specific standards for the measurement of success and
the management can adopt various steps in order to achieve the targets and objectives. It can also
be said that growth opportunities and career development play a crucial role in retaining the
employees that can be done by hiring the best and suitable employees for the company.

References
Books and Journals
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