Human Resource Management Report: Analysis of Tesco PLC HRM

This report provides a detailed analysis of Human Resource Management (HRM) practices within Tesco PLC, a major international retailer. It begins by defining and differentiating between personnel management and HRM, emphasizing the strategic role of HRM in achieving organizational goals. The report then assesses the functions of HRM, focusing on both operational and managerial processes within Tesco, including procurement, development, compensation, and integration. The responsibilities of line managers in HRM are evaluated, highlighting their role in employee relations and performance monitoring. Furthermore, the report examines the impact of legal and regulatory frameworks on HRM, ensuring compliance and protecting employee rights. Key aspects of HRM are explored, including human resource planning, recruitment and selection processes, motivational theories, reward systems, performance evaluation, and the procedures for employment cessation. Through this comprehensive analysis, the report offers insights into how Tesco manages its human resources to support its organizational objectives and maintain its position as a leading global retailer. The report also provides details of company policies and procedures related to employee conduct and legal compliance.

HUMAN
RESOURCE
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
LO1..................................................................................................................................................1
1.1 Analysing personnel management and HRM......................................................................1
1.2 Assess the function of the human resource management in contributing to organisational
purposes.......................................................................................................................................4
1.3 Evaluate the role and responsibilities of line managers in human resource management....5
1.4 Analyse the impact of the legal and regulatory framework on human resource
management................................................................................................................................6
LO2..................................................................................................................................................6
2.1 Analyse the reasons for human resource planning in organisations.....................................6
2.2 Outline the stages involved in planning human resource requirements................................6
2.3 Compare the recruitment and selection process in two organisations..................................6
2.4 Evaluate the effectiveness of the recruitment and selection techniques in two organisations
.....................................................................................................................................................6
LO3 .................................................................................................................................................6
3.1 Assess the link between motivational theory and reward.....................................................6
3.2 Evaluate the process of job evaluation and other factors determining pay...........................6
3.3 Assess the effectiveness of reward systems in different contexts.........................................6
3.4 Examine the methods organisations use to monitor employee performance........................6
LO4..................................................................................................................................................6
4.1 Identify the reasons for cessation of employment with an organisation...............................6
4.2 Describe the employment exit procedures used by two organisations.................................7
4.3 Consider the impact of the legal and regulatory framework on employment cessation
arrangements...............................................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

Illustration Index
Illustration 1: Personal Management ..............................................................................................3
Illustration 2: Human Resource Management ................................................................................4
Illustration 3: Function of HRM......................................................................................................5

INTRODUCTION
Every organization needs to follow the 3C's in order to make their Human resource
management work effectively (Stredwick, 2013). These are Choice, chance and change. HRM in
organisation needs to make choice in their selection process, provides new chance to employee
and make changes so that employee feel comfortable and can work in peaceful way in the
organization. They need to identify people abilities and their efficiency in order achieve desired
objectives. HRM department build bounding relationship with workers and organization. It
generally deals with workers and management and identifying various ways which supports as
well as benefit them. The report focus on identifying various ways and approaches which will
help in identifying the best and innovativeness in employees. The report will focus on the HRM
in Tecso and various ways they support and enhance the employee capability and capacity to
achieve organization goals. Moreover, it deals with the employee relationship and various laws
related to HRM. Furthermore, the report contain the details about the recruitment process, needs
of line manager in the organisation. At last, the role of motivation and rewards in the
organization and mechanisms related to the cessation of employment.
Company description: Tesco PLC is international retail and grocery store whose headquarter is
located in Hertfordshire, England, UK. Company is generating the revenue of 55.92 billion GBP
(2017) and is third largest supermarket of world. Company is having many subsidiaries all over
the world. The company was found by Jack Cohen and current CEO of the company is Dave
Lewis. Currently company is having more than 476,000 employees in their 6,553 stores in 12
different countries. Company is found to sort-out all the matters related to their colleagues in the
greatest ways possible. Company has simple policy to support the employee development so that
they can provide better services to the customer’s (Storey, 2014). HRM in Tesco focuses on the
recruitment and selection process, evaluating performance and rewarding, providing training,
learning and development programs.
LO1
1.1 Analysing personnel management and HRM
As stated by Lewin HRM is related to the employees development in organization like
selection, retention, using their ability, providing motivation and according to their performance
rewarding them. It's considered to be advanced version of personal management. Both are almost
having similarities but there is some advancement in HRM which is mentioned below:
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Features Personal Management Human Resource Management
Definition Aspect of management which
relates to work-environment and
its relationship with firm
Branch of entity which mainly
focus on utilizing the manpower
and achieve entity objectives.
Viewpoint in managing the
employees and other
colleagues.
Traditional Modern
Main focus Personal administration, staff
relation and welfare(Björkman
and et.al., 2013)
Acquisition, training,
motivation, monitoring,
retention and providing
rewards.
Function type Regular Strategic (Aswathappa, 2013)
Interaction Indirect Direct
Action of management Stepwise According to business need
Decision making ability At slow pace Fast
Structure Labour division In teams or group formation
General focus Recruitment, training and
harmony
Treating employees according
to their value assets, respect
and preserved.
Incentives In stages Integrated form
Role of management Debatable Transformational
Pay structure is based on
evaluation of
Job Performance
In management, personal management which deals with the process like recruiting staff,
evolution and providing compensation to employees and organization relationship of workers to
earn profit and market values. Main function of PM is as follows:
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 Managerial Function: The main role associated with the managerial function are
directing, controlling, coordinating with employees, providing motivation, making
planning and organizing the activities (Sparrow, Brewster, and Chung, 2016).
 Operative Function: It includes the tasks which are associated with making pricing
strategies, compensation with clients, development, welfare, evaluation of performance,
maintenance, procurement and utilizing their manpower.
As due to development most of the human work are mostly replaced by machine and technology.
In management, personal management is replaced with HRM. The advanced version of personal
management is more organized and specialized which mainly concerns with accession,
development, coordination in workplace, maintenance of employee and utilizing their ability to
achieve the organization goals and objectives in best and effective ways. For completing such
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Illustration 1: Personal Management

process, HRM needs strategic planning which comprise of appeal and needs, compensation,
performance praise, selection and training, in order to achieve organization goals.
1.2 Assess the function of the human resource management in contributing to organisational
purposes
The main function of HRM is to create the interaction between the employees and
management. Function of human resource management can be evaluated in Tesco in the
following ways. It's divided in the marginal process and the operational process (Shields, and
et.al., 2015). In terms of the operational process it involves the procurement, development,
compensation, integration and maintenance. In the procurement function involves the process of
influence and attracting the individual with suitable performance, knowledge, aptitude,
experience and skills which are required in order to perform multiple task in the organization. In
development function it involves the enhancing the ability, knowledge and skills of the
individual to increase performance and perform better. Compensation function part of HRM
where performance is monitored and rewards and incentives are given according to it. This
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Illustration 2: Human Resource Management

rewards are given to the employees who have contributed to the company in more effective
ways. Then comes the integration function which involves the employees to deal as social group,
it's used to enhance the communication ability of the individual and interaction with the other
organisational members. At last, in operational function is maintenance which comprises of
safety of the employees, social welfare and generating sense of security so that workers can work
without any issues in the organization ( Renwick, Redman and Maguire, 2013). This operational
function in Tesco has lead the organisation to be the third largest retailers in world as they are
completely focused on their colleagues.
The Second function of the HRM is managerial function which involves four main
structure. This are planning, organizing, directing and controlling. Planning is done in order to
identify the aspects and ways by which every individual employee can effectively work in the
organization and can perform better ( Purce, 2014). Organizing and directing the employees is
required to evaluate and monitor the performance of the employees so that if they are facing any
problem it can be sorted out. Moreover, it's required for the allocating respective task to
employees. Controlling is required to regulate the errors and make corrective action so that
employees don't get deviated and organisation can achieve their goals.
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Illustration 3: Function of HRM

1.3 Evaluate the role and responsibilities of line managers in human resource management
Line Managers at Tesco are required to maintain and monitor the staff along with the new
requirements of the entity. Their role is to report directly to the higher management and manage
the employees and their operation. In the cited company they are required to maintain the
relationship with the employees and the resolve their problems which they are facing in the
organization. Through the advice and suggestion they try to solve the problems due to which the
employee performance is decreasing. Moreover, it remains in contact with other high managerial
part so that they can allocate the task to the employee. All the tasks are allocated by the line
manager and the performance is monitored by them. They role is to provide basic interaction
between higher authority and employees (Nickson,, 2013). For being an effective line manager
company they must have following qualities like better communication, bond formation,
leadership quality and managerial quality so that they can effectively manage the employees. In
Tesco, every employee has great faith and trust on their line manager and if they are facing any
problems then directly resolve it with them. Their interaction with the HR is based on the
employee benefits and within organization norms. As the roles and responsibilities are increasing
in such organization so they needs to monitor the employee performance and their quality of
work. Their role is to provide or deliver the organization better quality work. Moreover, they
take part in the strategic execution of guidelines of organisation. They play effective role in
managing and handling the relationship of employee and management.
1.4 Analyse the impact of the legal and regulatory framework on human resource management
Being the third largest retailer in world, HRM in Tesco needs to follow the rules and
regulatory so that company market and brand image doesn't fall. Tesco is expanded in various
counties so HRM needs to follow and adopt the rules and regulation of those countries. Adopting
the policies and regulation of the country creates the positive image and strong relationship with
employees ( Marler and Fisher, 2013). Any illegal activities must be considered in the
organization. There are various employment laws which are made in order to protect employees,
provide safety and security to them. If rules and regulation are not followed by either the
company or the employees then legal action can be taken against them. Moreover, the company
also provides equality and there is no discrimination against caste, creeds, colour, religion, sex,
age etc. Along with this, there are also provision where employee can take or extend the sick
leaves in the company so that they can get completely cure. There are proper rights provided to
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HRM in Tesco if the employee is found to engulf in any illegal activities or something which
harms company reputation. A contract is dually signed by the employees while they become part
of Tesco which contains the rules and regulation of the company. Company can terminate the
employee if they found employee not meeting their standards. Such legal frameworks for HRM
in the company is also taking care about the wages, health and safety of the employees.
LO2
2.1 Analyse the reasons for human resource planning in organisations
HRM in Tesco is required for the betterment and to resolve the issues of the employees
along with improving their relationship with management. They are essential as they perform the
intermediate part in the communication between employees and management. Company is
having the 476000 employees which is required to be managed appropriately so that company
can achieve their objectives. Planning is done in order to reduce the issues of organisation and
employees. Planning is done while making recruitment and selection process, while providing
the training and development programs, for allocating tasks and making other necessary decision
which are beneficial to the organisation. Moreover, they are required to make the planning in
order to resolve the issue, scheduling and rotation of the employees along with handling the
salaries of the employees.
For illustration, Tesco employees were facing the problem related to payment of their
overtime. Normally employees needs to work for 37 hrs per week but many of the employees are
working overtime which needs to be paid. Such issues are handled by the HRM. As such great
issues harms the positive image of the company and because of this reason they need to make
planning. Such issues are solved with proper discussion and possible solution are taken by the
HRM of the company( Kramar, 2014). Planning of HR in Tesco is generalized as they are
required for the employee satisfaction, providing training to them, remain in contact with the line
manager, Hiring the employees having ability and capability to achieve organisation targets,
retaining the engaged employer, negotiating salaries, monitoring performance, providing awards,
incentive and making decision with involvement of employees. Such planning reduce the
investment cost of employees.
2.2 Outline the stages involved in planning human resource requirements
In order to make planning there are various internal and external factors which are
considered by human resource. This stages also involves ways which are required to identify
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ability and skills in the employees. In order to make planning following internal factors are
considered which are entity structure, budget, employee ability and their skills level, productivity
and consents. Organisation structure is required so that planing can be made effectively and in
proper way with consideration of very department members. In Tesco, Budget is required while
making planning by HR because as if they have higher budget company needs more employees,
more wages and it would be easier for the company to operate. Employee having greater skills
will require less investment and can be productive to company. In order to increase the
productivity HR planning focus on the positive workplace and performance analysis of the
employee. During HR planning compliance is considered as company needs to follow all the
legal laws and regulation in order to create safe and secure office along with payment of all taxes
and insurance of organisation and employees.
The external factors required for planning are carried out by PESTLE report. Political
factors in Tesco must be followed and adopted in the planning process as they might affect the
rules, tax, employee wages and other thing which might affect the business aspects. Economic
factor is considered in planning as it require money investment in salaries, development and
training process and other charges ( Jackson, Schuler and Jiang, 2014). Through this ways Tesco
can easily identify the number of employees they require and the amount of salary they need to
pay them. Social factors includes the cultural diversity, demographic and geographic condition
of the society. This issue can be resolved by recruitment of locals and through this way local
market can also be influenced. Due to advancement in the techniques and technology, Tesco
might need to provide training programs so that their skills and knowledge can be enhanced.
Legal aspects involves employment law which must be adopted in company policies by the
mangers and supervisors. At last, comes environmental laws which requires to identify the
working ability of employees, and various ways by which they can preserve environment. For
illustration, company might be using the plastic product or product which can be recycled. So
recycling, saving electricity are the part of planning of HR in Tesco.
2.3 Compare the recruitment and selection process in two organisations
Such tasks are entitled by companies to influence employment in their firm. So above
planning is used by Tesco for their recruitment and selection process. For understanding
completely the process its comparison is done with Walmart (Jabbour and et.al., 2013).
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Tesco Walmart
The process is done each year with quarterly
reviews in their selection and recruiting. Only
those candidates are allowed to take part
which are having clear background, clear job
description and position specification offered
by company. Most of the position are fulfilled
by internal recruitment. Training and
development programs are provided in order
to improve their capabilities and ability. There
has 7 work level which are clearly mentioned.
The jobs offered differ according to the
application. The candidate must follow the
rules and regulation of the company and task
allocated to them. HRM department provides
the best recruiters and candidate to the
company so that company reaches to the
number 1 supermarket retailer in UK.
Selection procedure includes interviews,
personality test and other situational
judgements ( Hoque, 2013).
Organisation mostly focuses on the internal
recruitment sources. They are mostly focused
to the current employees in the company.
Various training and development programs
and services are provided to the employees.
Moreover, managerial and supervision is done
in order to improve the candidate ability and
performance. While the external recruitment
includes the posting online job application.
Campus interviews in university, colleges or
open interview. Providing reply to the existing
applicants. The methods adopted are direct and
indirect. In direct the company goes to campus
which saves money, time and increases the
speed of recruitment. Indirect method comprise
of reaching to large group, advertisement
through media or websites. Selection is made
through interviews, personality test and other
situational judgements.
2.4 Evaluate the effectiveness of the recruitment and selection techniques in two organisations
The selection process used by both the company are relative similar for the
employment of the new employees. Various strategic planning are made by both the companies
so that they can chose best employees having best performance ability so that companies can
achieve their target and goals. Then to internal recruitment they are providing training and
development programs which can enhance there ability. The initial stages of both the company is
same of recruitment which is resume after which both the company have different personality
test which are according to their requirement. The candidates having more skills and practical
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