Human Resource Management Report - HRM Practices at Tesco

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This report provides a detailed analysis of Human Resource Management (HRM) practices at Tesco, a multinational retail company. The introduction outlines the core responsibilities of HRM, including staffing, compensation, and compliance. The report delves into the purpose and functions of HRM, exploring recruitment, orientation, employee relations, and the maintenance of work conditions. It then examines the strengths and weaknesses of internal and external recruitment approaches. The merits of various HRM practices, such as performance and reward management, training and development, and career development, are discussed. Furthermore, the report evaluates the effectiveness of these practices in raising organizational profit and productivity. The importance of employee relations and employment legislation in HRM decision-making is also highlighted. The report concludes with an overview of the application of HRM practices within the context of Tesco's operations, providing a comprehensive view of HRM strategies in a real-world business setting.
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Human Resources
Management
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Contents
INTRODUCTION...........................................................................................................................3
LO 1.................................................................................................................................................3
P 1 purpose and the functions of HRM.......................................................................................3
P 2 strengths and weaknesses of different approaches to recruitment and selection...................4
LO 2.................................................................................................................................................6
P 3 Merits of practices of HRM...................................................................................................6
P 4 effectiveness of different HRM practices for raising organizational profit and productivity
.....................................................................................................................................................7
LO 3.................................................................................................................................................8
P 5 importance of employee relations in respect to influencing HRM decision making............8
P 6 key elements of employment legislation and its impact on HRM decision making.............9
LO 4...............................................................................................................................................10
P 7 Applications of human resource management practices in work related context.............10
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13
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INTRODUCTION
Human Resource Management is the department in a company which helps to look after their
employees and manage them on behalf of the company. There are many responsibilities of a
human resource department and some of them are staffing, employee compensation and benefits,
and complying the work. Tesco, is a British origin company who deals in the line of
multinational groceries and general merchandise retailer and the base of operations commenced
in Welwyn Garden City, United Kingdom. It has successfully attained the position of becoming
the third-largest retailer in the world on the basis of revenue they earn and the ninth-largest
retailer across the world. This report includes topics such as purpose and functions of HRM.
Strength and weakness of recruitment and selection. Benefits and effectiveness of HRM. Key
elements and legal constraints of HRM and application of HRM practices in the company
(Jabbour and de Sousa Jabbour, 2016).
LO 1
P 1 purpose and the functions of HRM
HRM is concerned with management of employees and the path from retirement to recruitment.
Recruitment-
Recruitment is known as the process of looking for those people who meet the eligibility
criteria of the company. This process has a purpose and a objective and that is to attract those
people who are more than qualified and possess the skill set required to work for the company.
Other than this it helps companies such as Tesco to give importance to only those people who
match the criteria instead of attracting all people. It is necessary that Tesco makes an effective
plan which consists of all the factors such as how many employees are required. Budget should
be set up so that right amount of employees can be provided with fair package. This aspect helps
the company to save its cost, removes people from the list who does not match up the criteria
(Soltis, Brass and Lepak, 2018).
Orientation-
Tesco needs to understand the importance of orientation as it highlights the brief
introduction of the company and its working patterns. Other than this goals and objectives of the
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company with the way that how it can be attained by the employees. Orientation will help the
new employee to get convenient with the structure of the company. This is considered as one of
the most important and necessary functions of HRM. Employee must be clearly guided at this
stage about his role in the company, his position and the duties that are assigned to him.
Maintaining the condition of work-
Human resource department of Tesco needs to be concerned about the management of
conditions related to work. This will improve the level of flexibility for employees and the
environment for work will be better. Also human resources of Tesco need to motivate their
employees in order to get full and more of the efforts from the employees so that they can
complete their task more efficiently. HR department of the company needs to provide employees
with the benefits according to their preference such as financial and non financial as it improves
their level of satisfaction and helps them to retain for a long period of time (Kaufman, 2019).
Employee relations-
It is necessary that the HR department of the company maintains relationship with their
employees as it helps to know about the whereabouts of employee on a personal as well as
professional level. In order to be successful HR department needs to work so that relation
between the employer and employee is maintained (Guest, 2017).
P 2 strengths and weaknesses of different approaches to recruitment and selection
The process of recruitment and selection has totally changed because of the
modernization and advancement in technology. Now it is not necessary for the HR management
of the company to take routes that consumes their lot of time and effort, now they can go online
and recruit people. This helps the company to save their costs and this whole process is known as
internal recruitment.
Internal recruitment-
This type of recruitment can be done by the company in with the help of enabling
promotions or transfers. In this aspect sometimes company allows them to switch their role that
is from full time to part time or permanent (Boella and Goss-Turner, 2019).
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Strength-
The internal method of recruitment is considered as reasonable and cost effective as it
helps to give a boost to the morale of employees. Other than it also helps to reduce the rate of
turnover of employees by helping them to retain their skilled and eligible employees. Also this
aspect is used to give motivation to employees so that they can be pushed to invest more of their
efforts and work up to their potential.
Weakness-
This aspect has a weakness and that is when the company hires the employees internally
that is within the organization then it reduced the amount of candidates they can get who have
the potential. On the top of that they can loose the perspective minds who generates new and
innovative ideas for the company. Also there is a chance that this will increase the level of
conflicts and confusion in the company.
External recruitment-
External recruitment has a advantage over internal recruitment but it also has its own sets
of issues that the company needs to deal with. This aspect charges more money and consumes
more time. Also whenever Tesco will be looking for new employee they will need to check that
if the information presented by him is right or wrong. Training for the employees will be
required. Other than this company will need to look for people in ads in newspapers, online etc.
if the right type of people is not recruited for the company then the whole process will turn out as
failure.
Strength-
This aspect helps the company to look out for those candidates who have the potential
and can help the company to achieve growth in the market. Also company will be able to get
new faces and new innovative ideas from them. People chosen can be more dynamic in nature
and can have more experience in work then people chosen from internal recruitment. In order to
make their mark these employees will work with more passion.
Weakness-
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There are weakness which are related to this aspect that is it consumes a lot of time and
effort. There are many people who apply to be a part of the company and in order to go through
them requires a lot of time. This also creates a sense of fear in the employees who are already a
part of the company as they believe that they are loosing their chance of getting fair amount of
opportunities to excel at (Morgeson, Brannick and Levine, 2019).
LO 2
P 3 Merits of practices of HRM
Performance and reward management-
If the company is not setting up a reward for the performance of the employees then they
won’t think that putting in extra efforts is worth for the company. If Tesco do not set up a
program for reward then none of them will work up to their potential. Department of human
resource management of the company has a role to measure the efficiency of completion of task.
Other than that they need to design a strategy for the management of performance of employees
so that they can complete their work before the deadline and get recognized for their
performance by the company. Also the management system for performance needs to be made in
a way that ensures that skills of the employees are being improved so that they can be promoted
on to the next aspect of work. Effective performance management system is considered as the
potent tool for the company (Wilton, 2016).
Training and development-
Every employee of the company requires training at the beginning stage of their career.
Every company implements the process of training at a different stage. The company and the
department of HR needs to make sure that proper amount of investments have been made in the
sector of training. The purpose of these practices of HRM is to help the employees and learn new
things so that productivity of the company can be improved. Tesco needs to implement programs
which makes employees aware about the diversified skills and knowledge and increases their
awareness about new methods being used. Also in order to enable everyone for training program
must be flexible so that if any employee wants to train from home he or she can go online and
get it done by enrolling themselves in. This helps the company to improve their performance and
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enhance their skills which helps them to achieve short tem goals easily (Delery and Roumpi,
2017).
Career development-
It states that career of the employee must be given an importance and according to their
performance HR must promote them. It is linked with motivation as highly the motivation of
employee, higher he will achieve his goals and objectives. Tesco demands people who have
skills as they are the ones who take challenges and grab more opportunities. Company needs to
make their culture flexible and work friendly so that employees have less pressure and they can
work with full focus on obtaining the goal. It is difficult for the company as they operates on
such a large scale. This also helps the company to gain the advantage over their competitors.
P 4 effectiveness of different HRM practices for raising organizational profit and productivity
Performance and reward management-
This aspect is considered as one of the most effective if the company needs to achieve
success in the market. Success can only be achieved if the employees are skilled and have high
level of experience which helps them to control the outcome of the factors. HR department of the
company needs to make sure that the work they have done is treated well and they are getting
acknowledged for them. Also to ensure the effectiveness of this method they need to assess that
what motivates an employee because not everyone is motivated with financial benefits. If this is
done effectively then employees will contribute more to obtain the results. In order to get
expected results HR needs to make sure that the reward management is effective and according
to the employee’s will.
Training and development-
Sessions of training must be effective as it helps the employees to develop their skills,
abilities. It also sets their attitude and behavior according to professional approach. The purpose
of effectiveness helps the company to remove the gap between the abilities and skills they
possess and the abilities that are required. There are new and different set of programs enrolled
by the company for their employees which will help them to enhance their performance. It is up
to the employees and the supervision of HR to check that how effectively they are trained as it
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will help them to assess the value of this subject and this way they will be able to reduce the
level of wastage in completion of a task.
Career development-
Tesco needs to understand that more they keep the employees motivated and more
opportunities are provided to them which helps to make progress in their career they will be a
part of the company for a long period of time. It is the culture of the company that plays a
significant role here. Tesco keeps all the employees who are skilled and talented with the same
people who possess these type of qualities as they believe that together they will be able to make
progress for themselves as well as the company. If the teams are made effectively then it will
help the company to increase their share in the market and level of profits (Stewart and Brown,
2019).
LO 3
P 5 importance of employee relations in respect to influencing HRM decision making
Decision making-
There are many issues in which guidance of other members are needed. Individual
member can make faults miss out things which are important. On the other hand if relationship is
maintained between them then they can work together to come up to a solution. This way the set
goals can be achieved efficiently and effectively. It is advised that before taking a decision a plan
must be designed which covers pros and cons of the aspect where other employees will help. If
relations are not maintained with other people then other people won’t be interested to work with
other people (Brewster, Mayrhofer and Farndale, 2018).
Dividing the task-
If relations are maintained between employees and employer then they can come to an
agreement and reduce the load of work by dividing it between other people. This will help Tesco
to increase their productivity. One individual be it employer or employee cannot achieve the goal
which is why it is necessary that HR department of Tesco makes sure that relations are
maintained between both. This will also share the responsibilities of work which helps the
employees to keep their mind clean.
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Flexible culture-
If the culture of work is flexible and employees are allowed to communicate with each
other then they will be able to express the burden of work to each other. This will help them to
reduce the amount of stress and release tension which disrupts the flow of work. It is necessary
to respect every one in the company so others can do the same.
Reduction in conflicts-
Tesco needs to maintain their relations with their employees as if the relationship
between them are healthy there are less chances of engaging in a conflict. This will help them to
save their time and focus on the assigned task. Tesco treats their employees with same and fair
amount of respect so that everyone remains satisfied (Brewster and et.al., 2016).
Reduction in rate of absenteeism-
Company can make this sure by offering them a sufficient package of leaves so that they
feel relaxed and do not have any complains about leaves. This also makes them stop complaining
about each other.
Necessary to maintain relations-
Leaders of the company needs to understand that is necessary and important to maintain
the relations with employees and trust them. There can be a situation where they have to leave
for sometime and give control and responsibilities to someone who they can rely on. Also if the
relations are maintained then the culture of the company will remain positive.
P 6 key elements of employment legislation and its impact on HRM decision making.
Government of UK has laid down no of legislations to help the employee protect their
interest from the ill related activities of the companies. These aspects helps to reduce impact of
many issues such as unfair treatment, discrimination, abuse, violence and activities which are not
legal. Tesco operates on a large scale which makes it necessary for them to follows the laws and
legislations. This helps them to keep peace and maintain the image of their brand in the market.
Health and safety Act 1974-
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This act helps the employees against their health and safety in the premises of the
company. This act states that it is mandatory to equip the facility with required safety standards
which reduces anything that can cause harm to anyone. If the facility is not equipped with these
measures then employee has the right to take action against the company. Tesco provides
training to their employees so that they can use the machines properly with safety and reduce the
chances of meeting with an accident.
Employee protection Act 1978-
This act provides provisions and safety to employees in case of termination. It states that
there are some fundamental rules and guidelines which needs to be followed such as in case of
termination or appointing for a job. This act states that when an employee is hired an agreement
needs to be draft which states that minimum time period for the job needs to be met and in any
case of termination a sufficient time is provided. This is why Tesco follows all the guidelines and
none of it are modified as they are aware it can lead to it will lead to breach in legal aspect s and
the HR department of the company will be blamed (Banfield, Kay and Royles, 2018).
Equality Act 2010-
This act is concerned with protecting the interest of employees against wrongdoings such
as discrimination in the company. There are some basis which are classified under this law such
as age, gender, race, pregnancy, sexual abuse, disability. This ensures that employee is protected
from all these violence and harassment from their company, colleagues, head of division. This
act makes it sure that department of HR of the company fulfils their duty and reveal any
information which is against this act.
All the legislations presented above is legally protected which puts the employees safe
from the practices of HRM at Tesco. These laws ensures that activities committed by HR are
done under the agreement of legal aspects and the laws made by UK government.
LO 4
P 7 Applications of human resource management practices in work related context
HR practices are considered as that aspect which helps the employees of the company to
work on their skills of leadership and make improvement in it. With the help of effective training
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and enrolling them in programs which consists of motivation they will be able to prove
themselves for the assistance of the management. (Al-Hawary and Shdefat., 2016). The main
practices of the Human resource management of the TESCO company is to recruit and select
the employees for the company, so they can provide the better work force to the company
which can improve the productivity of the TESCO and they can take the competitive
advantages in the market where they are operating their business.
HRM of the company also makes the polices and play the payroll for the employees.
This all comes under their working practices. Here are some working practices of the Human
resource management-
Recruitment
Recruitment and selection the major working practices of the HRM in which companies
company recruit the employees for the particular job which is available in the workplace of the
TESCO company and according to this to take the interviews and other select to select the
skillful employees for the company. This is important for the company, so they can skillful labor
forces who can provide them their goals and objectives of the business.
Police making
This is another working practice of the company in which hey make the polices which
are related to the companies employees, so they can get the right, and they also create the
agreement between the employer and the employees, so they can work in the company without
any problem.
Training and development of employees
HRM of the TESCO company provide the training to the employees for their
development and this also help them to gain some new skills in themselves (Hoffman Jr and
Bowers., 2018). This is their working prices to make their employees skillful and effective, so
they can give their best in the companies task and achieve the goals of the company .
Maintain the workplace culture
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Human resource management of the company ensure the working condition of the
workplace through their practices like group practices. They control all the activities of the
group and give the instruction to the employees to give their best in the activities, and they also
provide the rewards for their good performance.
Payroll work
Payroll is the salary of the employees which is given by the company. there are different
types of functions assisted in it such as keeping a balance and assessing the data regarding to it
so that they can file the documents of tax. The department of payroll looks after the reduction in
wages in terms of absence of employees, filing the records and evaluating the data so that its
reliability can be assessed. This is the practices which s run b by the Human resources
management of the company in which they provide the salaries to the employees as per their
attendance in the company, and they also look for the employees disputes in the salaries so
employees can get the salaries which they services get from the company, and they can use the
salary for their consumption.
CONCLUSION
From the above studies it has been summarized that HR department of Tesco needs to work
under the guidelines provided by the government of UK and any case of breach or illegal
activities must be reported to it. There are many benefits of practices of HRM as it helps the
employees to train and develop their skills so that they can achieve their goals more efficiently
and effectively. It also helps to make progress in their career and earn their name. It is necessary
that employees are rewarded on the basis of their performance and the work they do is
appreciated then only they will remain motivated and work for the company by achieving
constant growth.
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