Strategic HRM at Tesco: Functions, Recruitment, and Legal Framework

This report provides a comprehensive analysis of Human Resource Management (HRM) practices at Tesco, a major international retailer. It begins with an overview of Tesco, including its mission, purpose, and objectives. The report then delves into the core functions of HRM, such as recruitment and selection, training and development, performance appraisal, planning, directing, and job design, emphasizing their significance in acquiring and retaining talent. It also examines different approaches to recruitment and selection, including internal and external methods, along with their respective strengths and weaknesses. Furthermore, the report explores learning, development, and training strategies at Tesco, differentiating between training and development, identifying training gaps, and evaluating the effectiveness of training programs. It also touches upon job and workplace design, reward management and the flexible organization. The report further discusses the purpose of employment law, key legal issues, and their impact on HR decision-making. It concludes by examining job and person specifications, recruitment and selection processes in practice, including designing job advertisements, short-listing applications, and preparing for interviews. Overall, the report provides a detailed overview of HRM functions at Tesco, highlighting its strategic importance in achieving organizational goals and maintaining a competitive advantage.

Human Resource
Management

Table of Contents
INTRODUCTION...........................................................................................................................3
LO 1.................................................................................................................................................3
Overview of Tesco.................................................................................................................3
Functions of HRM along with its significance in acquiring talent.........................................4
Strengths and weaknesses of different approaches to recruitment and selection...................4
LO 2.................................................................................................................................................5
Learning, development and training.......................................................................................5
Job and workplace design.......................................................................................................6
The flexible organisation........................................................................................................7
Performance and rewards.......................................................................................................8
LO3..................................................................................................................................................8
Purpose of employment law and key legal issues and constraints along with the impact on
decision making of HR...........................................................................................................8
LO 4...............................................................................................................................................10
Job and person specifications...............................................................................................10
Recruitment and selection in practice...................................................................................11
Designing and placing job advertisements...........................................................................12
Short-listing and processing applications.............................................................................12
Interviewing preparation and best practice...........................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Human resource management is related to the strategic approach which is used by the HR
department of an organisation to manage the employees so that their work performance can be
improved which will help the company in gaining a competitive advantage in market. HRM
include all the processes related to recruitment, selection, training and development,
remuneration, motivation etc. so that the skills and abilities of employees can be used to meet
company objectives on time (Albrecht and et. al., 2015). The purpose of HRM help in making
employee performance better so that the aims and objectives of company can be achieved in an
efficient and effective manner. All the HR department activities help in managing the work force
so that the resources of company can be efficiently utilised and profits can be maximised. In this
report Tesco plc is taken which is an international British retailer which deals in groceries and
general merchandise and is headquartered in England, UK. The company is biggest private
sector employer in UK with over 360,000 employees working in its stores. Under this report the
functions of HRM, their key roles and responsibilities along with the effectiveness of key
elements of HRM will be discussed. Further the factors which affect HRM decision-making
including employee legislation will be explained along with job and person specifications which
will help in gaining a broad idea about the HR functions in company.
LO 1
Overview of Tesco
Tesco is an international British retailer headquartered in UK which deals in groceries
and general merchandise. It is the third-largest retailer in the world in terms of gross revenue
having its stores in over 12 countries outside UK. Tesco is the largest private sector employer in
UK which makes the functions of HRM in company most important (Analoui, 2018).
Mission: It aims at creating high value for its customers so that their lifetime loyalty can be
earned.
Purpose: The company tries to serve its customers better products always so that their standard
of living can be enhanced.
Objectives: The core business objective is to understand customer needs so that they can be
catered in an efficient manner along with acting responsibly towards the communities so that
their trust in Tesco can be increased.

Functions of HRM along with its significance in acquiring talent
Employees are the most crucial assets of Tesco who needs to be efficiently managed so
that they can help company in achieving its goals on time thereby gaining a competitive edge in
market. Some of the HR functions are: Recruitment and selection: Recruiting and selecting employees based on the job
requirements so that right people can be recruited at right time and for right job role so
that the objectives of company can be achieved on time. It help in recruiting highly
skilled and efficient employees for company who can help in finishing tasks on time and
in an efficient manner so that company goals are effectively achieved. Training and development: It is important to develop and train employees so that their
skills can be made efficient which helps in fulfilling the job requirements in an effective
manner (Brewster, Mayrhofer and Farndale, 2018). Through this the performance of
employees can improve which can help in achieving company goals in an efficient
manner and also providing high quality goods and services to customers. Performance appraisal: It is related to compensating employees based on their
performance so that they can be motivated to perform better thus completing their work
on time. This help in encouraging the employees to perform better that can help the
company in gaining a competitive advantage in market through improved overall
performance and productivity of employees. Planning: The function of HRM is to plan workforce structure of company so that
appropriate number and type of employees can be recruited which can help in achieving
company goals on time. This can help in making work easy for employees so that they
can perform work as per plan so that timely goals of company can be achieved. Directing: It is important that the employees are given direction related to performing
their work so that they complete the work in a defined manner which can help in
achieving company objectives on time. This help in improving the performance of
employees as they know how they have to perform their work which is essential in
completing wok on time and with efficiency.
 Job design: It is important that the delegation of work among employees is done based
on their skills and talents so that they can complete their work efficiently and effectively
which also help in enhancing their performance and productivity. This can help in

attracting employees having required skills so that the work can be completed with a
desired level of efficiency thereby improving the quality of goods and services given to
customers.
Best fit Vs best practice: Best practices are the approaches of HR which help the
organisation in gaining a competitive advantage in the market regardless of its position in
industry. Best practice model imply a close connection between HR practices and company
performance irrespective of market and product strategies. On the other hand best fit approach
considers building HR practices depending on the business strategy so that the performance of
company can be enhanced and company objectives can be achieved.
Hard and soft HRM: Hard HRM treats employees as mere resources of company who
help in achieving company objectives and so the main purpose of HRM is to identify the
workforce need of business and recruit and manage them accordingly. Soft HRM on the other
hand treats employees as the most important resource in company which can help in gaining a
competitive edge in the market. Soft HRM focus on needs of employees and try to motivate them
so that good employee relations can be build which can help in enhancing their performance.
Strengths and weaknesses of different approaches to recruitment and selection
Recruitment relates to the process of attracting, short-listing, selecting and appointing
suitable candidates for a job vacancy so that the job role can be performed by the employee
efficiently. Various approaches of recruitment in Tesco are: Internal recruitment: Tesco first considers the existing employees for filling up a job
vacancy. Strengths: The method is cheap and can be quickly done based on the
performance of workers in past and evaluating the job requirement with their efficiency.
Weaknesses: This method restricts the entry of new ideas in company from outside. Also
internal conflicts due to jealousy might arise which can affect organisational performance
(Delery and Roumpi, 2017).
 External recruitment: When employees are recruited from outside to fill up a job
vacancy in Tesco which it does by advertising about vacancies on its website or through
vacancy boards. Strengths: Through this method new and innovative ideas can be
brought in company from outside which can increase its profits. Weaknesses: The
process takes time and is costly.

Selection relates to choosing the best suitable candidate for a particular job position based
on the fulfilment of a set criteria which is required for performing the job efficiently. Interview is
a method of selection used in Tesco so that candidates can be selected for a job position. In this
method specific generic questions related to job requirement so that the candidate who have
specific skills and abilities can be selected. Strengths: This method help in evaluating potential
candidates as right people having a specific set of skills and knowledge can be selected.
Weaknesses: this method is time consuming and costly and also employers can be biased based
on references given by candidates (3-recruitment-and-selection .2019). Assessment tests: This
method can be used to analyse the logical and aptitude knowledge of candidates so that
employees having the required aptitude level can be selected who can help in solving problems
efficiently and bringing innovation in company. Strengths: This method can help in selecting
logical employees so that innovation can be promoted in company. Weakness: assessing the
ability of employees based on their aptitude level does not give their employability skills.
LO 2
Learning, development and training
Differentiating development and training:
Training is a learning process where they get an opportunity to develop certain specific
skills, competency and knowledge so that they can efficiently fulfil the job requirement and can
perform their work effectively. Development on the other hand relates to the overall growth of
employees which can help in making their performance better and also help in getting future
opportunities so that they can grow and develop both personally and professionally. Both
training and development are important to be conducted in Tesco so that the efficiency and
competency of employees can be enhanced along with giving them better opportunities to grow
(Hecklau and et. al., 2016).
Training gap
Training needs to be given to employees so that the existing skills of an employee can be
developed and enhanced which will help them to complete their work in desired manner. It is
important to fill the gap between skills required to complete a work and the skills already
possessed by workers so that effective and efficient completion of task within time can be done
which helps the company in performing better in marketplace (John and Taylor, 2016)

Types of training
Training is an organised activity which is conducted so that the performance of
employees can be improved by making their skills, knowledge and competency better and as per
the requirement of job. Some types of training are: Orientation: It is a one-time event which happens in Tesco when a large number of
candidates are recruited in company so that they can be welcomed and introduced to the
company functions and structures making them familiar with company. This training is
relevant to all company departments and roles (Williams, 2018). Technical skills and development training: It relates to training employees so that their
technical skills can be improved which can help them to perform technical tasks in Tesco
in an efficient manner.
 Promotional training: It relates to training existing employees so that they can perform
on higher level jobs. Employees having the required potential to perform high level jobs
are selected and trained before promoting them (Mao and et. al., 2016).
Evaluation of training
Evaluation of training is important so that their effectiveness and efficiency in achieving
the goals of training can be analysed. This also help in evaluating the training programmes in
relation to their ability to achieve company objectives. Evaluation of training can be done on four
criteria: reaction, learning, behaviour and result. Reaction refers to the attitude of employees
towards training. Learning refers to the extent to which employees can learn through training.
Behaviour helps in analysing the effectiveness of training through change in behaviour of
employees towards their work, peers, seniors etc. Results are analysed in monetary terms or
increase in profitability of company so as to determine the effectiveness of training (Zheng and
et. al., 2015).
Job and workplace design
Reward management
It refers to the formulation and implementation of strategies and policies so that the
employees can be rewarded fairly, equitably and consistently based on their performance and the
value they add to company. Tesco consistently rewards its employees so that their motivation
level can be kept high which will help in enhancing their performance (Treweek and et. al.,
2018). Intrinsic rewards are psychological reward which an employees get when they do

meaningful work which enhance their job satisfaction like sense of achievement, recognition,
work freedom etc. Extrinsic rewards are physical rewards which are given to employees based
on their performance like bonus, fringe benefits etc.
Link between motivational theory and rewards
Motivation and rewards are strongly related as motivation helps in improving the
performance of employees so that they can complete their work on time whereas rewards are
given to employees who perform better (Mura and Horvath, 2015). According to Maslow
employees will be motivated to work if their five stages of hierarchical needs are efficiently
fulfilled which will help in making their performance better and also they can earn both intrinsic
and extrinsic rewards in company.
The flexible organisation
Types of flexibility
Flexibility in workplace relates to having a suitable working condition in company so that
work-life balance of employees can be managed. This helps in improving the productivity and
efficiency of employees so that they can perform better which help the company in achieving
their goals on time. Types of flexibility that exist in Tesco are: Telecommuting: This helps the workers to do their works from wherever they are present
by accessing the work online so that the work can be completed irrespective of the
physical presence of workers (Namazie and Pahlavnejad, 2016). Flexible scheduling: This relates to giving freedom to employees to start and end their
work whenever they want with the basic condition of completing the work within a set
deadline.
 Part-time: When an employee is allowed to work between 30-35 hours a week or less
which helps even students to work in Tesco and simultaneously completing their studies.
Models of flexible organisations
John Atkinson's Flexible-Firm model (1984) is a managerial and organisational technique
which help the companies to use various forms of flexibility so that the use of human resources
in achieving organisational goals can be optimised. Three forms of flexibility are identified in
this model: Functional flexibility: This allow managers to move workers around jobs and tasks as
per needs thus enhancing the employee versatility (Nankervis and et. al., 2016).

 Numerical flexibility: It helps the managers to match the need of workers in company so
that sufficient number of employees can be managed.
 Financial flexibility: It relates to the flexibility of cost of labour depending on the rate of
supply and demand of labours.
Benefits to employers and employees of flexible working environment
Flexible working environment helps in providing benefits of job satisfaction, better work
life balance, and leading a healthy and stress free life to both employers and employees. Flexible
working environment can help in increasing the performance and productivity of employees,
reducing absenteeism and less turnover of employees which helps the company in achieving its
goals on time which are beneficial for employers. Also the employees become happier and
satisfied with their jobs which improves their quality of life (Stone and et al., 2015).
Performance and rewards
Performance management
Performance management relates to managing the overall performance of company by
focusing on the performance of employees, departments and processes so that the performance of
company can be improved which will help in achieving competitive edge in market. Performance
management is important so that employees can utilize their skills and abilities in the best
possible manner to complete the task on time (Noe and et al., 2017).
Methods used to monitor employee performance
It is important to monitor the employee performance on a regular basis so that they can be
trained and motivated to improve their performance and also it help in identifying better
performing employees who are to be rewarded. Methods used in Tesco to monitor employee
performance: Quality of work: The timely completion of work following a desired standard can help in
measuring and monitoring employee performance based on the quality with which work
is completed.
 Client survey: A client survey can help in determining the level of performance of
employees by analysing their responses towards company (Stewart and Brown, 2019).

LO3
Analysis of importance of employee relations
Employee relations are an important part of HRM practices which h help in building
strong and long-term relations with them so that their performance can improve and they can feel
more valued and connected to organisation. It also help in making efficient decisions by
involving them in decision making so that their ideas and opinions can be valued which also help
in bringing innovation in company. It also help in motivating the workers and enhancing their
confidence which is important to increase their productivity which increases the overall
productivity and profitability of company. Flexible working environment, increased employee
engagement etc. can help in building strong relations with employees so that a friendly working
environment can be built and employees can feel more connected to company. Also this help in
encouraging them to give their best in completing their work with efficiency.
Trade unions help in regulating employee relations through collective bargaining which
involves negotiating the payment and other conditions of employment, consultation so that they
can discuss about business and workplace related issues. It is important that the demands of trade
unions are fulfilled which can help in building good relations with employees so that they can
give their best in performance of work. Trade unions and collective agreements affect the HRM
decision making as the HR mangers have to take decisions like decision of compensation,
working hours, employee relations, amount of their participation in decision making etc. these
decisions affect the way in which trade unions perform in the company which affect the way in
which company goals are achieved. They also affect the way in which talent management is done
in company so that their skills can be utilised in achieving company goals. Conflict management
and performance appraisal decisions are also affected by the way in which employee relations
are maintained by trade unions.
Purpose of employment law and key legal issues and constraints along with the impact on
decision making of HR
Employment acts: -
Employment acts balances the relations among employers, employee, trade unions.
Working people in UK are benefited from minimum authority of labour rights.
EQUALITY ACT, 2010

New equality act came into existence on 1 October, 2010. This puts together 116 different
segments of legislation into a single Act. Implementation of this act by Tesco Plc will safeguards
against discrimination, harassment, deception in employment and as customer of public or
private based on nine protected attributes: age, disability, gender transitioning, marriage, civil
partnership, maternity, religion, gender. Equality act helps in decision making to HR manager in
different ways. It can generate a multiplicity of plan of action to lead behaviour at workplace. It
equalises the pay between female and male employees and it creates trust and faith among
employees in Tesco Plc.
Data protection act, 1988
The DPA is an act of parliament of UK and came into force in 1988. it was introduced to
direct that the details and figures of consumer and personal will be used by such organisation in
which manner. By application of this Act in Tesco Plc it will shelters people and provide
guidelines about how the information could be used. The DPA was replaced in May 2018 with
the general data protection Act. This act aids the decision making process of HR in an effective
manner. According to this act HR manager of Tesco Plc is not required to upkeep the personal
record when it is not demanded.
Health and safety act, 1974
This act states that the employed company should safeguards health, safety and well-
being of employees as well as outsiders. This further says that an employer can’t cut down its
cost when it is for safety of their workers. Employer has to establish all kind of safety measures
and standards. By adoption of this Act in Tesco Plc it will create empathy among the workers
and will lead the company to run in long time.
Redundancy payment act, 1965
Redundancy is a type of expulsion from job. It may happen when organisation is required to
eliminate their manpower. If Tesco Plc enforces this act then the eliminated employees might be
entitled for some benefits, like: -
 pay of redundancy
 notice period
 time leave for finding a new placement.

If worker of Tesco Plc is facing redundancy, then it is the duty of HR manager that selection of
employees for removal that it should be an unbiased decision based on the capability of
persisting that job role not on the basis of age or gender.
Unfair Dismissal Act
This act states that if an employee is discharged from his job role by the employer then
there should be an honest reason behind it. This act is propounded to protect rights of employees
and a fair judgement to be made for dismissal from a job by the organisation. By execution of
this Act in Tesco Plc the employees will enjoy fair judgement by superiors.
AS HR manager of Tesco Plc the HR manager should always look into the matter intensely and
then decision of dismissal should be made.
Employment contracts act
This act of UK declares about the employment contract made between employer and
employees of the organisation. By enforcement of this Act in Tesco Plc a clear agreement should
be made which carries terms of employment, rights given to an employee, accountability
assigned to an employee and obligation set to them. As a HR manager of Tesco Plc the job
became easier since there is an open agreement made and employee and employer are aware of
this and there is no hidden point.
LO 4
Job and person specifications
For recruiting a non-food manager in Tesco so that the vacancy can be filled by capable
employees following person specification and job description can be made:
Person Specification
Position: Non-food manager
Functional unit: Administration department
Reporting to: Store Manager
Attributes Essential Desirable
Qualification & Experience The applicant must have
completed graduation in
administration with more than
The Candidates having post
graduation within
management industry along