HR Function's Impact on Tesco's Organizational Design and Success

This report provides an in-depth analysis of Tesco's HR function and its contribution to organizational success. It begins with an introduction to Tesco, its organizational structure (specifically the functional structure), and the relationship between organizational design and structure. The report then investigates how Tesco ensures its HR function contributes to organizational design, including an examination of functional and divisional structures. It explores HR practices in response to internal and external environmental changes, such as performance-based rewards and effective evaluation systems. Furthermore, the report delves into change management, the role of HR in managing changes, and organizational design in this context, including the application of the ADKAR model. The conclusion summarizes the key findings and offers recommendations for further improvement, emphasizing the importance of HR practices in achieving organizational goals and adapting to external opportunities. The report highlights the significance of a positive relationship between employees and employers in mitigating conflicts and fostering success.

Value and Contribution to
Organisational Success

Table of Contents
INTRODUCTION...........................................................................................................................1
PART 1............................................................................................................................................1
Introduction.................................................................................................................................1
Organisation structure.................................................................................................................1
Organisation design and its relation to organisation structure....................................................2
Investigation into two approaches to identify how the organisation ensure the HR function
contributes to the organization design.........................................................................................3
HR practices in responsive to change in internal and external environment..............................4
Conclusion and recommendation................................................................................................4
PART 2............................................................................................................................................5
Change management...................................................................................................................5
Role of HR in managing changes and Organisational design in that respect.............................6
Organisation design.....................................................................................................................7
Recommendation.........................................................................................................................8
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9
.......................................................................................................................................................10

INTRODUCTION
Human resource consider as an important assets in organization as it deals with all kind
of issues related with employees. In this regards, manager is amenable for bring off as well as
handling all the activities like compensation and long term growth opportunity that assist in
accomplishing success at market place. In the main overall success of organization is highly
depend on its individual who put their efforts for attaining sustainability at workplace (Acciaro,
2015). Along with this, it also contribute in attaining objectives by reducing performance gap at
workplace. For attaining the same, manager and leader also consider as a crucial part within the
organisation as they motivate and inspire workers to make them productive. Current report is
based on Tesco, is a famous British multinational groceries and general merchandise retailer in
UK. It deals in supermarket and serve better quality products to its customers as per their
requirements. This project going to discussed about organisation design and its importance for
improving sustainable performance. Along with this, analyse of requirement of develop
motivated knowledgeable and experienced team and individual as well. At last, contemporary
knowledge and research is also mentioned in this project which support in HR development.
Evaluation of relationship between organisational design and change management is also
discussed here.
PART 1
Introduction
Tesco, is a British multinational groceries and general merchandise retailer in UK. It is
third largest retailer in the world. It was founded in 1919 by Jack Cohen with the aim of
expanding their business globally. Along with this, it operate in around 11 countries in over the
world and also diversified into areas like retailing of books, electronics, furniture, clothing and
furniture as well. Tesco has around 6800 shops which offer variety of products and services to
customers to attain growth at market place. In business organisation approx 45000 workers are
perform for company and attaining its objectives.
Organisation structure
In business, organisational structure is related with various activities that includes roles
and responsibilities of different level. It directly lend in attaining all the goals and objectives (Al-
Haddad and Kotnour, 2015). The main purpose of establishing organizational structure is run all
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the activities in systematic manner. Furthermore, various type of structures are there like Matrix,
divisional structure, hierarchical in which Tesco follow functional organizational structure that
focus on different type of departments present in the company.
Functional structure: It is one of the effective and appropriate structure that support
business organisation to attain all the task and activities in systematic manner. In this employees
perform their roles and responsibilities that is based on the specialisation task activities in the
organization (Asah, Fatoki and Rungani, 2015). Along with this, it also includes different
division that supervised by functional manager who have all the required skills about specified
subject and area as well. In this, the main role of functional manager within Tesco is to
effectively utilise employees efforts within the organisation in order to accomplishment of all the
set objectives and target as well. Furthermore, authority of functional management is related with
the decision making and allocation of resources which may aid in managing all the budget of the
firm. One of the main advantage of functional structure is to manage workers and team members
as per their interest and knowledge as well so that positive outcome can be easily achieved. Thus,
it directly support in improving the possibility of accomplishing success at market by reducing
the duplicate work at workplace.
Organisation design and its relation to organisation structure
Organisation design is one of the important activity that help in integrating activities,
information, workers and technology in systematic mix in order to accomplish entire goals in
stipulate time frame. In this regard, organizational structure is also consider as a formal process
of communication and power that determine the specified role and responsibility of employee
within the organisation and its workplace as well. Both are related with each other because
without developing organisation design structure is not effectively developed. In organisational
context, Tesco follow functional organizational structure which help employees to share their
new and innovative ideas that support in attaining desirable objectives. In context of this, it also
related with implementing advance technology that help in producing quality and desirable
inputs that lend in improving the overall execution of the organization. This structure does not
includes top management decision as manager of the company handle all the activities and
decision making process to maintain positive work environment (Badewi, 2016). Thus, it is
crucial for enterprise to keep better relationship between organisation structure and design as
well to build positive and healthy relation among employer and employee as well. In this
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context, there are some effective elements that is related with organisational design and structure
as well.
Size of organization:
Tesco is a famous and large business organisation and also includes huge number of
employees who perform for company to attain their targets. Company adopt functional structure
in which all the level of the company is designed with different authority. Furthermore, design of
organization includes workers with same skills and categorised but at the same time they have
less power to take decision (Bititci And et. al., 2015). Thus, it is crucial for organization to
maintain better connectivity and communication among manager and employees as well. For
attaining the functional manager play a significant role in developing positive and healthy
relation at workplace.
Organization life cycle:
It is also an crucial aspect of business that includes different stages such as introduction,
growth, maturity and decline. All the stages is related with the improvement of the company and
its performance as well. Along with this, each and every stages directly affect the decision
making activities and organization culture as well. In this context, Tesco continuously improve
in the new products and services with the aim of enhancing their profitability level. Thus, it is
essential for functional manager to produce quality and effective products and at the same time
also implement some changes by adopting latest technology. This will amend the possibilities of
attaining competitive growth at market place. This is the main reason that better interrelation
among structure and design may present in rising performance level of the company.
Investigation into two approaches to identify how the organisation ensure the HR function
contributes to the organization design
In business organization, various approaches are there that help in determining
contribution of HR function in organization design. These following points are as follows:
Functional structure: Tesco follow this type of structure that help them in executing
activities of organization in effective manner. In this HR manager ensure that all the function like
human resource, accounting, sales and production as well (de Carvalho, Patah and de Souza
Bido, 2015). Each and every department has its own procedures that assist in accomplishing all
the set goals and objectives in effective manner. In this manager hire skilled workers who are
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capable in accomplishing entire allotted activities. With the assistance of this, HR manager take
right decision within the organisation and improve performance as well.
Divisional structure: Under this, HR manager divide the department that make whole
process easy and effective as well. All these divisions are based on the organisational outputs. In
this context, HR function like providing training, managing workers and many more play a
significant role in attaining desired goals (French, 2015). Furthermore, this type of approach is
also flexible in nature in which workers can easily handle all the changes and make overall
performance positive.
HR practices in responsive to change in internal and external environment
In business organization, different HR practices are there that help managing as well as
responsive towards the changes related with internal and external environment. All these points
are as follows:
 Performance based rewards: It is an effective practice of HR in which company
provide benefits to employees on the basis of their performance. This can be monetary or
non monetary incentives. Both are support in heighten the performance of the workers at
workplace. Along with this, it also retain existing workers in business organization and at
the same time also invite new and talent workers from the external environment with the
aim of enhancing growth level.
 Effective system of evaluation: In this, top level management analyse the performance
of the employees and also provide them feedback on the basis of their activities. By using
this practices workers can improve their efficiency level and also put their best to attain
their set targets in allotted time frame. This will directly impart in enhancing overall
productivity of Tesco at market place.
Conclusion and recommendation
As per above mentioned part, it can be concluded that organisational design and structure
is highly different from each other because it based on the size and command as well. In this
regard, manager of the company needs to effectively develop HR practices that assist in
accomplishing all the set goals and objectives. In addition of this, approaches related to HR is
also play a vital role in grabbing external opportunity which may directly contribute in attaining
long term goals and objectives in most effective manner. The main reason behind this is positive
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relation between employee and employer that support in minimizing the possibility of increasing
any kind of issues and conflicts.
PART 2
Change management
Change management consider as an effective approach that help in dealing with the
transition of organisational goal and technologies as well. Along with this, the main purpose of
change management is to effectively implement the strategies that help in managing, effecting
and controlling the changes within the business organization (Hoole and Bonnema, 2015). It also
support to the employees in adapting to changes at workplace to improve the chances of
accomplishing positive results. In organisational context, Tesco make changes within their
existing process of running their business activities by using advance technologies. In this
company operate their business through online platform in which company promote their
services via digital media that help them in inviting number of customers towards its products
and services as well. Normally, it is not more easier for workers to adapt changes at workplace.
Thus, manager of the company provide effective training and development activities to their
workers. On the other side, it is time and cost consuming but it support in improving the
employees performance. In this context, company use different theory and models to manage the
change within the organisation. These are as follows:
ADKAR Model:
It is one of the important model which used by organization in ensuring the changes
occurs at workplace. In this regards, the main focus of this model on people and its elements of
changes and how they support to the change (The ADKAR Model, 2018). Along with this, it is
also build awareness, create desire, develop knowledge and foster ability to effectively manage
the chances. This model includes 5 key steps which are as follows:
 Awareness: this step is related with the requirement of the company to effectively
manage as well as adapt changes associated with the advancement of technology and
many more (Ji-fan Ren and et. al., 2017).
 Desire: This stage includes the role of employees towards the changes at workplace. In
this workers tries to put their efforts for developing managing changes appropriately.
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 Knowledge: It is related with the skills and knowledge of employees towards the
changes occur at workplace (North and Kumta, 2018). By this they easily accept all the
changes in most effective manner.
 Ability: This is refer to the carry forward the changes that developed by the company to
improve the employees performance.
 Reinforcement: In this change process and rewards for the workers needs to be change
to met all the set goals and objectives at workplace. In this employees are perform their
activities accordingly and at the same time also reinforced long after the changes.
Role of HR in managing changes and Organisational design in that respect
In organisation, HR play a crucial role in managing changes that occur at workplace and
business activities as well. It is related with the news and innovative technology that take place
in the company over the old one. In this, HR manager tries to building effective team and
encourage them to do their best at workplace. This will improve the performance level of the
company and its workers as well. In context of Tesco, operate their business in over the world
with the aim of establishing their competitive brand image. In this company also needs to analyse
all the external factors that support the in attaining higher growth level. As there are some role of
HR department that help in managing changes and design. These are as follows:
Better communication: This type of practices is also effective that help in managing the
changes and also maintain better design that help them in improving overall performance of the
company and its employees as well. In this, HR manager is responsible to making staff members
understand towards the changes. By effectively communicating, manager of company easily
provide all the necessary information about strategies that may contribute in bringing
transparency at workplace and at the same time also keep positive relation among manager and
employees as well.
Develop training and development: It is one of the crucial role of HR manager of Tesco
to provide better training and development programs to existing workers in order to improve
their skills and knowledge (Presbitero, Roxas and Chadee, 2016). With the help of this,
employees can able in accepting all the changes for smoothly running the business activities.
Furthermore, it also contribute in reducing the chances of arising issues at workplace and
employees become self confident to understand the situation and working activities as well.
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Organisation design
It is consider as a step by step activity which used to determine the non-adaptive aspects
of work flows, its process, structure and system as well in order to develop plan to effectively
implement the new changes within the organisation. In this context, the main role of organisation
design is to maintain all the internal operations and at the same time also focus on enhancing
productivity level of the company (Laforet, 2016). Along with this, it also save operating cost of
the company and provide quality services to its target customers as per their needs and
requirement as well. In this regard, there are some points that is related with organization
changes are as follows:
 Determine nature of change: It is important for company and its manager to analyse the
nature of changes. As every business organization operate their business in dynamic
environment in which changes are occur rapidly. In this, it is important for Tesco accept
all the changes and perform their task accordingly. For this, company needs to update
their technologies and also implement advance innovation that contribute in improving
the performance of company.
 Operations: In market, taste and preferences of customers is continuously change in
which organisation is responsible for implementing new technology to provide quality
services to its customers. Mainly, it is related with the flow of communication, structure,
strategy and many more. In this company make some alternative ways and strategy that
help workers to perform their task effectively and smoothly.
 Implement and evaluate the changes: Under this, business organization implement
their new activities on the basis of recent trends and demand of customers. With the
assistance of this, company satisfy customers needs and wants. In context of this,
effective monitoring within the company may aid in attaining all the set goals and
objectives by using new and innovative technology. This will aid in attaining higher
success.
Recommendation
As per above mentioned part it has been recommended that change management is play a
vital role in improving organizational performance. As it includes different ways or
recommendation that can be beneficial in making positive performance:
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 Training: It is crucial for HR manager to give effective training and development
activities to workers in improving their skills and knowledge (Kotula and et. al., 2015).
By this they can easily make an effective and challenging tram that help in implementing
all the objectives in appropriate manner.
 Identify gap: In this HR manager of Tesco needs to analysis gap as per continuous basis
in order to determine the actual position within the company. With the help of this,
organization may improve their growth level by utilise the better one within the
organization. Along with this, HR manager also includes incentives and other benefits for
encouraging workers to effectively accept all the changes in an appropriate manner.
CONCLUSION
As per discussed report it has been summarised that change is important within the
organisation as it help them in improving as well as sustaining in market place for longer period
of time. In this context, HR manager is also play a critical part in ensuring about all the changes
and also handle it effectively. This may improve the chances of reach objectives. Furthermore, it
also includes appropriate training and development programs so that employees can easily
implement all the changes appropriately. Furthermore, organization structure and its design is
also evaluate effectively by managing internal performance of the workers within the
organization. For attaining higher success, proper planning and design is also support business in
which employees can perform their task and activities at workplace.
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REFERENCES
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management skills on the performance of SMEs in South Africa. African Journal of
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North, K. and Kumta, G., 2018. Knowledge management: Value creation through organizational
learning. Springer.
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Online
The ADKAR Model. 2018. [Online]. Available
through:<https://www.accipio.com/eleadership/mod/wiki/view.php?id=1705>.
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