Human Resource Management at Tesco: An In-Depth Analysis Report

This report provides an analysis of Human Resource Management (HRM) practices at Tesco, a multinational retail corporation. It begins by explaining the purpose and scope of HRM in terms of workforce planning and resourcing, aligning talent and skills with business objectives. The report evaluates the effectiveness of key HRM elements, such as recruitment, training, and employee relations, in enhancing organizational profit and productivity. It also analyzes internal and external factors, including employment legislation, that affect HRM decision-making. The importance of employee relations in influencing HR management decisions is highlighted, emphasizing the need for communication and trust between employers and employees. The report concludes by summarizing the key findings and implications for HRM at Tesco.

ICON College of Technology and Management
Faculty of Business and Management Studies
BTEC HND in Business
Coursework
Human Resources Management
Tutor: Enayet Sarwar
Submitted by:
Full Name: Nazrul Islam
ID No: 18106
Session: January, 2021
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Table of content: Page no.
1. Introduction................................................................................................................................ 3
2. LO1 Explain the purpose and scope of Human Resource Management in terms of
resourcing in your chosen organization with talent and skills appropriate to fulfill business
objectives ....................................................................................................................................... 3-6
3. LO2 Evaluate the effectiveness of the key elements of Human Resource Management in an
organization......................................................................................................................................7-8
4. LO3 Analyze internal and external factors that affect Human Resource Management decision-
making, including employment legislation....................................................................................8-9
5. LO4 Apply Human Resource Management practices in a work-related context ....... 10
6. Conclusion..................................................................................................................................... 11
7. References
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 Introduction
Human resource management is the process of hiring, selecting, training, and developing
employees in order to help the company meet its individual, organizational, and social goals.
Human resource management selects the most qualified candidates from among thousands of
applicants. It gives staff training and encourages them to stay with the company for a longer
time (Boxall, P. and Purcell, J. 2009). The human resources management of Tesco, a
corporation formed in 1919 in England, has been discussed in this report. It's a store that sells
goods in the United Kingdom. In this unit, we'll look at the HRM tools and techniques that can
help them to get the most out of their employees. Also, the value of employee training and
development in the growth of the company.
LO1 Explain the purpose and scope of Human Resource Management in terms of
resourcing in your chosen organization with talent and skills appropriate to fulfill
business objectives.
1.1. The purpose and functions of HRM applicable to workforce planning and
resourcing an organisation
About TESCO:
Tesco is an international retailing firm that specializes in groceries and products. It was
founded in 1919 by Jack Cohen and is headquartered in England. Tesco is the third largest
retailer in the world in terms of gross revenues and the ninth largest retailer in terms of
revenues. It operates in the United Kingdom, India, Malaysia, Ireland, Thailand, the Czech
Republic, Hungary, and Poland, among other nations. Tesco offers a diverse range of
businesses including apparel, books, electronics, gasoline, financial services, software,
internet services, and telecommunications (Shen and Benson, 2016).
Tesco's mission statement is to "be the champion for consumers, assisting them in enjoying a
better quality of life and a simpler way of life."
Tesco's purpose: Tesco's main goal is to "serve shoppers a little better every day." Tesco's
strategy underscores the fact that servicing consumers is at the center of all they do, from
retail employees to support staff (Koopman, Lanaj and Scott, 2016).
Tesco's objectives are as follows: Tesco's goals are to boost sales and profit first and
foremost. Second, they need to lower their prices. Third, they want to include more healthy
eating options in the large variety of items they sell.
Fourth, Tesco wants to build a major online shopping site to improve online shopping
experience, and last, it wants to eliminate unemployment in society by hiring local people.
Human resource management (HRM) is a strategic approach to recruiting, hiring, deploying,
and managing a company's employees (Potts and et.al., 2016)
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Human Resource Management (HRM)
Human resource management has certain specific aims in the recruitment for a longer period
of time of the best employees. Human resource management makes it easier to take steps to
improve an employee's competencies and talents (Mondy and Gowan, 2005). Human resource
management aids in the enhancement of employees' value-generating potential in order to aid
in the creation of value for the organization. Recruitment functions, recruitment and selection
of functions, training and function development and management are all examples of
particular human resource management functions. In order to adequately execute these roles,
management must do a number of other tasks.
Purpose of Human Resource Management
As Tesco's human resources manager, I have required to execute specific measures. The
following objectives must be considered:
 The department for human resources ensures the employees have better facilities to
achieve their best possible business success. It provides demand-based training
facilities from changing environments. Since the staff are the most important resource
for the enterprise, the ultimate aim of the company that provides the maximum the
company value should not otherwise be properly managed (Gennard and Judge, 2010).
 Several laws and regulations must be adhered to on a regular basis. The goal of human
resource management is to find the gaps between existing rules and regulations and
the company's human resource activities. Human resource rights are protected by a
number of laws. For example, the Equal Pay Act of 1963 and the Age Discrimination in
Employment Act of 1967.
 Human resource management seeks out ways to help people enhance their present
skill levels by giving proper care and support (Armstrong, M. 2002). The management
feels that if adequate communication is developed, employees' difficulties may be
captured and suitable feedback can be supplied on time. The entire performance of
employees genuinely helps the company achieve its goals.
 If an appropriate communication route can be established, the communication gap
between employees can be easily filled. Because the human resource manager is in
charge of a varied workforce, it is vital that they foster an environment that encourages
employees to openly share their thoughts.
Tesco's Human Resource Management function is as follows:
To achieve the goals, Management is responsible for the following tasks:
 It keeps records of department goals and assigns adequate human resources to assist
them in achieving their goals so that the company's ultimate aim can be realized
(Grensing-Pophal, L. 2010).
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 Another function of the organization is to keep the top employees by providing them
with appealing compensation plans so that they stay with the company for a longer
period of time.
 Human resource management values employee input in order to provide greater
assistance and feedback, which is critical for developing employee motivation and
skills (Harrison, R. 2000).
 Another key duty of human resource management is to safeguard the rights of
employees in order to avert future conflicts.
Different Recruitment Approaches' Strengths and Weaknesses
In order to choose the best staff among thousands of candidates, human resource managers
must use a range of recruitment methods (Boxall and Purcell, 2009). Interviewing candidates,
creating selection criteria, promoting the best personnel, taking employee referrals into
consideration, and managing campus recruitment are just some examples. However, the
management has both strengths and disadvantages as a result of these recruitment methods,
which are stated below:
Promotional Strengths and Weaknesses
Strengths include:
o When Tesco employees understand how greater skills benefit them, they become
motivated. As a result, in order to achieve this, they are aiming to increase their
existing level of capabilities.
o Employees offer their all in the workplace. Employees may as a result perform better.
o If Tesco employees take the training program seriously, the return on investment
might be tremendous.
Weaknesses include:
o The majority of Tesco's senior staff oppose this strategy since it limits their
opportunities for promotion (Gennard and Judge, 2010).
o Management's prejudiced and subjective judgemental approach can stifle the progress
of outstanding individuals.
Employee Referrals' Strengths and Weaknesses
Strengths include:
o Internal recruitment provide the best candidates for the job because the current
employee already has the skills and expertise required (Mondy and Gowan, 2005).
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o The human resource management department might ask the current employee if there
is a gap because the current employee is responsible for the new employee's
performance on the job.
Weaknesses include:
o When it comes to recruiting friends and relatives, current employees may be biased. As
a result, low-wage individuals may be hired to fill the opening.
o This method might reduce the benefits of labor diversification.
Direct Recruitment's Strengths and Weaknesses
Strengths include:
o Tesco can use this strategy to find the best employees for the present position from a
diversified workforce.
o Using this method, the company can find the perfect employee for the right position.
Weaknesses include:
o In direct cost recruitment, the cost of picking the best individuals is significant.
o Employees are unaware of the company's present tradition. As a result, management
must invest some effort to imparting practical information to them.
Campus Recruitment's Strengths and Weaknesses
Strengths include:
o Employees hired through college recruitment are technically proficient. As a result,
they will not need to spend as much money on their training.
o In a short amount of time, a significant number of personnel can be gathered. As a
result, the corporation will have to spend less money.
Weaknesses include:
o Employees lack practical experience with the company. As a result, suitable training
facilities are required (Mondy and Gowan, 2005).
o New hires may be moved from one position to another. As a result, staff training costs
may be lost.
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 LO2 Evaluate the effectiveness of the key elements of Human Resource
Management in an organization
The Benefits of Various HRM Practices
The following are some of the advantages of different HRM practices:
Resolving Conflicts: Conflicts may emerge during the course of doing business. Employee
conflict is less likely when human resource management strategies are used. Tesco's human
resources, for example, are compensated objectively in order to avoid any potential
compensation conflicts.
Minimize Employee Turnover: Tesco's human resource management sets strategies to
improve employee care and support in order to reduce staff turnover. If Tesco's employee
turnover rate is high, the company's hiring and training costs will be expensive, and the
company's performance would be low.
Increase Employee Productivity: Tesco's competitive edge is dependent on the
performance of its employees. As a result of continued training and feedback, employees'
overall job performance increases (Armstrong, M. 2002). Tesco's human resource
management gives newer, more up-to-date information and training opportunities to its
employees, allowing them to contribute more to the firm.
Budget Control: Budget control is also aided by good human resource management policies.
Tesco's budgeting strategies are eventually implemented by the company's staff (Mathis and
Jackson 2003). Employees are given superior facilities to guarantee that other resources are
utilized optimally because they have control over them.
The efficacy of various HRM practices in terms of increasing organizational profit and
productivity
The following are the effectiveness of Tesco's various HRM practices in terms of increasing
organizational profit and productivity:
 Tesco expects constant training and support in many forms from its employees in
order for them to achieve their best work. Tesco, for example, provides a real-world
scenario of the current problem, simulated training with advanced tools, information
about the test and customer preferences, as well as innovative approaches to boost
productivity (Boxall and Purcell, 2009). These amenities increase the company's
productivity and profitability.
 Tesco provides a number of compensation plans and benefits to retain employees for a
longer period of time (Gennard and Judge, 2010). As a result, the cost of employing and
training new personnel can be lowered, increasing profitability.
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 Individual employees and team members are assigned goals by Tesco's human
resource management (Harrison, R. 2000). The present situation of the business
environment is used to revise compensation packages on a regular basis. The
organization's employees are encouraged to put in long hours and follow the training
program to the letter.
 Tesco's human resource management organizes and manages personnel in such a way
that employee connections strengthen (Grensing-Pophal, L. 2010). Employees have the
opportunity to obtain expertise in related disciplines when they share their ideas with
others.
 LO3 Analyze internal and external factors that affect Human Resource
Management decision- making, including employment legislation
The Importance of Employee Relations in Influencing HR Management Decision Making
Tesco relies heavily on its employees to carry out the company's plans. Human resource
management should communicate with employees before making any final HRM decisions to
guarantee that the decision is carried out successfully. To involve employees in decision-
making, a proper climate of trust and caring should be formed between the employer and the
employee (Mondy and Gowan, 2005). Employees will be more motivated to engage in the
implementation of various HRM practices if they believe their feedback will be included
during decision-making.
Maintaining a correct balance of employee relations is a difficult undertaking since it requires
ongoing understanding, trust, and belief on both the employer's and employees' parts. As a
result, the employer must exercise special caution and assistance in managing the company's
employee interactions. HRM policy implementation is successful when there is a positive
employee interaction within the company. Tesco Company uses a variety of HR practices to be
competitive with other businesses by maximizing its most valuable resource, people capital.
Management is always focused on these issues since it enhances the working environment in
the firm. Employee relationship management has many difficult challenges. Because the
personnel are from varied backgrounds, there is a greater risk of miscommunication and
conflict. As a result, management should pay special attention to this area in order to maintain
a calm work atmosphere. If employees' relationships strengthen, they will help each other in
any scenario. This method will help boost the company's overall performance.
Key Employment Legislation Elements and Their Impact on HRM Decision Making
There are several laws and rules that make it easier for ordinary employees to join and
contribute to any organization by donating their services (Armstrong, M. 2002). These laws
and regulations help to eliminate disparities in employee hiring. When designing HR policy,
Tesco follows these laws and regulations. The following statutes are among them:
 Equal Pay Act. 1963
 Privacy Act. 1974
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 Uniform Guidelines for Employee Selection Procedures 1978 etc.
 Race Relations Act 1992
 Sex Discrimination Act 1995
 Race Relations Amendment Act 2000
 Equal Pay Act 1970
 Disability Discrimination Acts 1995
 Employment Act 2008
 Work and Families Act 2006
 Employment Relations Act 2004
 Data Protection Act 1998
Key elements of employment legislation within which the organisation must work
2011 Health and Safety Act: According to this rule, the Tesco corporation gives health-related
benefits to its employees, such as life insurance and access to competent medical care. In the event
of an unexpected accident on business property, the firm has the right to assist its employee
financially by providing all facilities related to their life and health. Tesco's management maintains
cleanliness for employees because they recognize that employees are assets to their firm, as they are
the ones who can provide growth and income. As a result, they must look after the health and
cleanliness of their employees (Koopman, Lanaj and Scott, 2016).
Wage rates and Compensation Act: Tesco constantly tries to safeguard employees under this law,
and management ensures that their employers treat them fairly when it comes to payment for job
done. They always make certain that their employees' financial demands are met on schedule, based
on their hard work and performance in each task. As the firm recognizes that its people are its
backbone, providing for their requirements through suitable wages and salary compensation to
employees increases employee trust and helps them improve their lifestyle, allowing them to stay
longer with the firm.
Employment Act of 1996 – It outlines the rights that employers must provide to employees. In this
company, no employee can be fired without a legal dismissal order.
Equal Pay Act of 1970- This act requires organizations to pay equal wages to all employees who
work at the same level. They must be given the same opportunity as everyone else.
The Equality Act of 2010 requires that all employees in a company be treated equally.
This act assists the organization in retaining employees.
The Sexual Discrimination Act states that no discrimination should be made on the basis of
gender, age, or color. It doesn't matter if you're a woman or a man; you have to be treated equally.
Tesco follows the law when it comes to HR policies. The provincial government has issued
special orders for HR policies, which are also taken into consideration (Mathis and Jackson
2003). For example, it is recommended that the company hire a big number of persons from
impoverished areas. As a result, when Tesco hires new employees, they must complete this
protocol.
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 LO4 Apply Human Resource Management practices in a work-related context.
Incorporation of HRM Practices into a Workplace
Human resource management practices are applied in every step of the company process.
Technology is increasingly being used to implement HR procedures. Here are a few examples
of HRM practices that could be implemented:
Recruiting via social media: Social networking recruitment has become increasingly
widespread for all organizations (Armstrong, M. 2002). Tesco, like many other companies,
uses LinkedIn and Facebook profiles to find out more about possible new workers. Video
conferencing is also used for interviews, which saves both the company and the employee
money.
Recruiter's candidate tracking system: Tesco's recruiter may simply track required
applicants by scanning their resumes with this tool (Gennard and Judge, 2010). This
application saves time and effort for employers by allowing them to choose the best
candidates from thousands of resumes that contain a wide range of information.
Digital Recruiting: Tesco recruiters can benefit from mobile recruiting because it is a widely
utilized gadget that is used by practically all candidates (Harrison, R. 2000). This approach
makes it simple to keep track of potential employees. This tool is commonly used for mobile
browsers, mobile apps, texting via mobile phone, and other approaches.
The following are some more HRM tools and strategies that aid in the proper implementation
of policies and procedures in the organization (Grensing-Pophal, L. 2010). Tesco, for instance,
maintains a child care center on site. This facility allows the employee to work for a longer
amount of time without interruption. Tesco also provides staff with the opportunity to work
from home. As a result, staff can work at their own pace and do their responsibilities correctly.
As a result of these HR strategies, employee loyalty is increased.
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Conclusion:
According to this overview, staff training is critical for the organization's success, and the entire business is
typically reliant on employee effort. Also, the value of excellent relationships in the workplace was
highlighted. Tesco's executives explain how the corporation can help its employees by providing them with
adequate training.
Human resource management is essential for the organization's success. It chooses the top individuals from
thousands of applications. It gives employees the essential training and encourages them to stay with the
company for a longer period of time. In this paper, the procedures of Tesco's human resource management
were investigated. Human resource management policies are widely employed in many aspects of the
organization, as the preceding section has demonstrated (Boxall and Purcell, 2009). A number of facets of
this company's human resource management have been taken into account. Employee relations and
numerous HR rules are unavoidable for the success of the firm. Human resource management supports in the
development of employees' value-creating capability so that they can contribute to the organization's value
generation.
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