Analysis of Human Resource Management at Tesco PLC

Desklib provides past papers and solved assignments for students. This report analyzes Tesco's HRM practices.

Human Resource Functions and their effectiveness in
organisations

Executive Summary
In this report, deep delved knowledge regarding importance of HRM practice is introduced with
different organisational example of Tesco UK. In initial stage, different functions and purposes
of HRM practices and their impact on workforce is also mentioned properly. On the other hand,
benefits of HRM practice on both employers and employees are properly mentioned along with
Tesco’s contemporary position in the market. Employee relation and its impact on decision-
making processes of managers of Tesco is mentioned thoroughly.
2

Table of Contents
Introduction......................................................................................................................................3
LO1..................................................................................................................................................4
LO2..................................................................................................................................................8
LO3................................................................................................................................................12
Conclusion.....................................................................................................................................15
Reference List................................................................................................................................16
3

Introduction
In contemporary business process, function of human resource managers is essentially important,
through which a sustainable business can be acquired. Economic condition of UK has changed
rapidly after the incident of Brexit and companies are acquiring new strategies of recruitment and
selection process. Tesco is one of the largest retailers of the world and has more than 440000
employees in global context (tescoplc.com, 2018). This company has its headquarter in
Hertfordshire and it has unique process of human resource management. In this report, different
aspects such as the purpose of HRM management along with benefit of HRM practices on
company is mentioned.
4

LO1
Purpose and functions of HRM applicable to workforce planning and
resourcing of TESCO
In context of Tesco UK, the company HRM process have unique management process through
which organisation can acquire proper planning regarding the development of the organisation.
According to Brewster et al. (2016), not only recruitment but also training and development
HRM team of Tesco directs program also. In both global and local business, the company is on
the path of proper growth, therefore, regular recruitment is needed in both food and non food
parts of the company. There are different functions of HRM of Tesco and each has
distinguishable attributes towards company's growth.
Planning Process for recruitment
Regarding recruitment procedure, the company has availed workforce planning research process
where it is reported that the company is in need of more than 4000 managers in their global
business procedure. In every year, the planning for new recruitment is done in the month of
February and quarterly review of the workforce strength is arranged in months of May, August
and November. It is also reported that Tesco fills vacancies through internal recruitment facilities
by which their costing in recruitment process is minimised.
Providing job description and Person Specification
In work environment of Tesco, one of the major duties of HRM in workforce management is to
plan for clear job descriptions and specification of persons. Kerzner and Kerzner (2017) opined
that specification of person introduces certain skills and attributes which are needed to be present
in the person in order to do a particular job. Through proper job description and person
specification, the company helps applicants regarding list of requirements such as:
 They provide enough information in order to acquire suitable applicants for different jobs
 Their person specification plan also work as a checking device through which right skills
of applicants for a job is seen
 Standards and target for a job are set carefully and according to the contemporary need of
the company.
5

Figure 1: HR functions to fulfill business objectives
(Source: Created by Learner)
Strengths and weaknesses of Different approaches to recruitment and
selection process
Contemporary economic condition of UK, as well as the company, is compelling Tesco to rely
more on internal recruitment process. In HRM practices, Internal and External recruitment
processes are main processes through which companies manage their workforce properly.
Internal Recruitment External Recruitment
Strengths  It is a cost efficient
program as the whole
recruitment program
can be done internally
without organising any
event
 No need of training
 Availability of a huge
number of applicants
always provide
opportunities to a
company in order to
acquire a better
workforce with new
6

facilities regarding
working process and
environment of the
organisation as
employees are already
familiar with the work
culture of the company
 No new persons are
recruited only salary
structure is changed
which is much more
cost friendly for the
company (Albrecht et
al., 2015)
 Only efficient people
are introduced through
this recruitment
process therefore, an
efficient workforce is
acquired by this
recruitment
talents and new
business ideas
 Through this process,
huge number of
employees can be
recruited by the
company and
therefore, a better
workforce can be
acquired
 Company's corporate
social responsibility is
improved as huge
recruitments create a
positive impact on the
employment of the
locality
Weaknesses  Number of employees
cannot be increased
therefore bigger
workforce cannot be
achieved through this
kind of recruitment
 New ideas cannot be
circulated in projects
as new people are nor
recruited
 The company is
restrained from
acquiring raw talents
from outside the world,
therefore, diversity and
change in business
become very difficult
 Costing is the main
issues for this kind of
recruitment as
organising events for
recruitment is a huge
function (Ekwoaba et
al., 2015)
 Not only recruitment,
but training program
also drains budget of
the company
 It is seen very often
that because of large
scale recruitment,
proper assessment of
applicants is not done
properly, therefore,
improper numbers and
talents are recruited
Table 1: Strengths and weaknesses of Different approaches to recruitment and selection
process
(Source: Created by Learner)
7

LO2
Benefits of Different HRM practices in Tesco for both employers and Employees
Benefits for Employers
Internal recruitment process is the most common HRM practice of Tesco and it introduces
different strengths and opportunities for the company to acquire a better business facility in
context of both UK and global business. Perfect recruitment facilities of Tesco through both
internal and external recruitment provide a better workforce for the company. According to
Meijerink et al. (2016) in Maslow’s need Hierarchy and Herzberg two factor theory, it is seen
that motivating employees is one of the main important things to maintain a workforce properly.
Motivation not only benefits employees to make them more efficient but it also changes the
workforce by changing the internal environment of the company.
In context of UK, the company has six different store formats and this can be availed by the
company because of the availability of huge workforce in context of UK. On the other hand, it is
seen in Human resource practice of Tesco that HRM teams have capabilities to mitigate certain
challenges regarding employee conflict in different situations. Acute knowledge of company
policies helped them to abate conflicts between managers and employees and this helps a
workforce to perform better.
Benefits for Employers
In a recent report, it is mentioned that the company has more than 7000 stores across the world,
which could not be acquired by the company without having a proper workforce in the company.
It is important for human resource management of the company to take care of the workforce
properly, there are several government policies such as Employment Act, and Workforce Health
and Safety Act are needed to be considered by HRM of the company to enforce a better work
culture in the company (Tzabbar et al., 2017).
High facility training facilities improve efficiencies of the employees, which not only improve
the service of the company, but it also improves the perception of employees regarding the
company and employee loyalty is achieved. In this highly competitive market, gaining trust from
employees is essentially important.
8

Figure 2: Benefits of Different HRM practices in Tesco for both employers and Employees
(Source: Created by Learner)
9

Effectiveness of different HRM practices in terms of raising organisational
profit and productivity
Effectiveness of practice on Organisational profit
Activities Effects on Organisation profit
Better recruitment facility  Highly efficient recruitment and
training facility has helped the
company to achieve one of the largest
retail workforce in context of UK
 In a recent report, it is mentioned that
the company has achieved 28% rise in
their annual profit despite improper
economic condition
 In context of UK, the company has
availed 2.5 billion pounds worth sales
which indicates its premium position
in context of UK (statista.com, 2018)
Improved training facilities  Improved training facility of Tesco
helps the company to manage the large
work force
 Effects of improved training facilities
of Tesco in UK are seen in company's
improved revenue as the company has
earned 28% more revenue than their
expectation in the year 2018
 Better training facility of the company
helped them to achieve more than 7000
stores all over the world which helped
them to acquire the pinnacle in global
retail market
Table 2: Effectiveness of practice on Organisational profit
(Source: Created by Learner)
Effectiveness of practice on Organisational productivity
Tesco’s global and local business productivity is based on effective HRM practice of the
company. Proper training program influences both new and old employees to perform better. On
the other hand, Raza et al. (2017) opined that a better training and development team helps a
company to avail a better workforce. Efficiency of employees is increased because of efficient
training schedule and better technology and communication technologies are provided to
10

employees. These have both positive and negative impact on employees in different contexts of
the business.
Training and development process improves efficiency of a company, which has positive impact
on company's profit in global and local business. Better training facilities help the company to
maintain its balance in business by which workforce assessment is done by HRM of the
company.
11

LO3
Importance of employee relations with respect to influencing HRM decisions
making
Employee relation is one of the major attributes in business through which a business can acquire
a better position in competitive contemporary market. In context of Tesco, HRM team properly
involves employees in different functions and its effects can be seen in decision-making process.
Maintaining Workforce
Maintaining workforce in firms of Tesco is one of the major duties of HRM and it is helping the
company to manage proper communication among employees and between employees and
managers. Collings et al. (2018) mentioned that better communication among employees creates
proper environment in business, therefore, decision-making process for both managers and HRM
become very easy in different contexts.
Employee relation
Inclusion of employees in decision-making process is a huge active one in order to gain trust
from employees regarding different functions of the organisation. In context of employee
relation, trust is the key factor and involving employees in decision making also vividly
expresses organisational goal to every employee (Conway et al., 2016). Tesco includes
employees in their decision-making events and this culture tells employees that the company
values both their position and opinion. If an employee finds out that their input has introduced
beneficiary change in the company, the employee can feel important in the decision making
process for the company.
Introduction of Different angles while decision making
Introduction of employees in company’s decision-making process is one of the most important
aspects through which different new angles in decision making process can be introduced
properly. Employees are the roots of a company and they can find out actual needs regarding the
change in a company (Valizade et al., 2016). Therefore, considering their views make Tesco not
only a better organisation to work for employees but it also improves the revenue of the
company.
12