HRM Report: Appraisals, Recruitment, and Reward at Tesco (Module)

This report provides an in-depth analysis of Tesco's Human Resource Management (HRM) practices. It examines the positive and negative aspects of employee appraisals and their impact on the psychological contract, focusing on how appraisals influence employee motivation and performance. The report then critically discusses Tesco's recruitment and selection policies, evaluating them against best practices in the industry, including both internal and external recruitment methods. Finally, it explores strategies to enhance Tesco's reward packages to improve employee motivation without necessarily increasing salaries, considering various non-monetary incentives and their effectiveness. The report concludes with a comprehensive overview of the key findings, emphasizing the interconnectedness of these HRM elements in fostering a productive and engaged workforce within the retail giant.

Introduction to Human
Resource Management
& Learning and Talent
Development

Table of Contents
INTRODUCTION.......................................................................................................................2
1. Identify the positive and negative aspects of appraisals and the impact of them on the
psychological contract. ...................................................................................................................2
Introduction.................................................................................................................................3
Main Body...................................................................................................................................3
Conclusion...................................................................................................................................3
2. Obtain an organisations recruitment and selection policy/procedure and critically discuss the
content of this in light of best practice.............................................................................................3
Introduction.................................................................................................................................4
Main Body...................................................................................................................................4
Conclusion...................................................................................................................................4
3. How can an organisations reward package be enhanced to improve motivation without
increasing an employee’s salary? ....................................................................................................4
Introduction.................................................................................................................................5
Main Body...................................................................................................................................5
Conclusion...................................................................................................................................5
CONCLUSION................................................................................................................................5

INTRODUCTION
Human resource management refers to the practice used by large number of companies in
order to hire, select, recruit, deploying as well as managing the employees of the organisations in
an effective manner. Human resource management plays very important role in the overall
development of the company and consider all the aspects of human resources (Al-Emadi,
Schwabenland and Wei, 2015). In the present report, Tesco is chosen as the base company,
which belongs to a retail industry. It is one of the biggest and largest retail company in the world.
Tesco is a British multinational groceries industry, which was founded in the year 1919 by Jack
Cohen and its headquarter is located in Hertfordshire, England. Tesco belong to a retail industry
which mainly deals in the groceries. In the current report, 3 topics are going to discussed which
includes detail description of psychological contract along with its positive and negative impact.
In the second topic, recruitment and selection procedure is discussed which is obtain by
organisations. At last, in this report reward package is going is explained which helps them in
order to motivate them without increasing their salary.
1. Identify the positive and negative aspects of appraisals and the impact of
them on the psychological contract.
Introduction
This is the first topic which includes detail information of psychological contract, its
impact as well as positive and negative aspects of appraisal. All these things are going to be
covered in this report. Chosen company for conducting this research in an effective manner is
Tesco. Psychological contract is an unwritten document which includes different expectations of
an individual working within the company (Bailey and et. al., 2018). Appraisal is the method
where high authority of the company appraise the employees working within the organisation. It
is the process of analysing and evaluating the current perform of staff members and them
promote, fire, retain or demote them. In the present report, it has been identified that what is the
impact of psychological contract on the performance appraisal of employees.
Main Body
Psychological contract: It refers to the contract which is includes various expectations of
an individual employee but all these demands and requirements are unwritten. It is different from

employment contract as it is created by the employee itself. Psychological contract is defined
with the aid of relationship between employer and employees which is unwritten expectation
from both side. It refers to a philosophy and not a plan or procedure. It is the contract where
relationship between both the employer and employee is in the form of informal manner. For
instance, Tesco is the company where large number of employees are hired, select, recruit and
fired on a regular basis. Each and every employee have their own good or bad relationship with
their boss, colleagues and peers (Banfield, Kay and Royles, 2018). Psychological contract is the
one which includes unwritten set of beliefs, informal arrangements, perceptions and values of
both the parties. It is the contract which is developed and formulated generally on the basis of
communication between both employee-employer. If the psychological contract breach it may
cause various damages which affect the overall performance, efficiency of employees and may
arise different grievance within the company. Fairness plays very important role in the
psychological contract as it creates healthy and positive relationship between the staff members.
With the assistance of this contract, appraisal of employees being affected in both positive and
negative manner. It can seen in various factors where one of the major aspect is appraisal of an
employees.
In general, appraisals refers to the method where managers of the company examine and
evaluate the performance of employees and then appraise them by proving them monetary
benefits. Along with this there are some positive as well as negative impact of appraisal on the
psychology of an individual working within the company.
Positive and negative aspects of appraisal on psychology: Appraisal of an employee
highly affect its psychology in both positive and negative manner. Both these aspects are
explained in detail as follows:
Positive: One of the main positive impact of appraisal is that it helps in motivating
employees for performing hard within the organisation. This can be well understood with an
example, where at the time of appraisal employee itself pre-imagine a situation with the aid of
psychological contract related with their appraisal (Bratton and Gold, 2017). Therefore, if the
higher authority consider their performance and appraise them according to their expectations,
then it will positively affect the psychology of an individual. This will also motivate them and
assist them in order to increase their performance in a positive manner.

Negative: On the other hand, there is a negative aspect which highly affect the
psychology of an individual as well as its performance and efficiency. For instance, if there is
breach of psychological contract between the employer an employee of the company, then it will
affect the appraisal of an individual. Breach of psychological contract may enhance the negative
situation which includes decrease in performance of employees. Therefore appraisal may create
negative impact on the psychology of an individual (Chelladurai and Kerwin, 2018).
Conclusion
As per the above mention report, it has clearly been identified that psychological contract
plays very important role in the overall development of an individual in both positive and
negative manner. Along with this, it has also been identified that psychological factor may affect
the employees performance in both positive and negative manner. Apart from this appraisal of an
individual largely depends upon the psychological contract which may provide positive as well
as adverse affect on the staff members of company. Therefore, it has been concluded that
psychological factor aid the employees of an organisation.
2. Obtain an organisations recruitment and selection procedure and critically
discuss the content of this in light of best practice.
Introduction
In the second part of this report, a detail description is included in this part which is
related with the recruitment and selection procedures used by the chosen organisations. Selection
refers to the method where skilled and capable candidate gets selected by the managers in order
to attain the organisational goals. On the other hand, recruitment refers to the process where
company hire effective candidates from large number of applications (DeCenzo, Robbinsand
Verhulst, 2016). In this chosen company is Tesco. Along with this it includes a critical
evaluation of the procedure used by management team of the company in order to recruit and
select best and suitable candidates.
Main Body
Recruitment: It refers to the method where managers of the company find and hire best
and suitable candidates for the vacant job position in an effective manner. It includes the process
where first step is to identify the requirements of job and them hire candidates according to the

need. The major aim of recruiting employees is to hire best and suitable candidates for their
company, so that they will assist them in accomplishing their pre defined goals and objectives.
Selection: On the other hand, selection is the process where management team of the
company select suitable candidates for their companies. It is the process where company put
right men at the right place at the right time (Hughes and Byrd, 2017). In the process of
selection, management team of the company match requirements of the job position with the
knowledge and skills of applicants. It is considered as the positive method as it encourages
candidates.
Recruitment procedure:
Recruitment planning: It is the first step where management team of an organisation
identify the requirement of recruitment and the job position. It is very necessary for the managers
to examine the vacant job position.
Strategy Development: As per this stage, an effective strategy need to be developed by
the managers of organisation. While developing recruitment strategy HR team of the company
need to consider various factors which includes:
 Sources of recruitment
 Types of recruitment
Searching: On the basis of this stage, management team of the organisation search
candidates according to the requirements of job position. Along with this, it is very important to
have capable skills and knowledge in order to satisfy the need of job requirement.
Screening: It is the step which starts after completing the above stage which is searching.
It is the method which helps in eliminating the unqualified candidates which they get while
searching the candidates.
Evaluation & Control: At the last stage of recruitment process, managers evaluate the
overall process as well as identify the cost incurred while recruiting capable candidates. If the
cost is high then it is required by the managers to control the overall cost (Kirwan, 2016).
There are various methods of recruitment used by organisations in order to get best and
suitable candidates for their company. These methods includes internal as well as external
method of recruitment, promotion and transfer, advertisement, colleagues placements, part time
workers and many more. From this, management team of Tesco adopt internal and external
method for recruitment which are going to be discussed as follows:

Internal method: First of all managers of the company tries to fill the vacant job position
with the help of internal method of recruitment. For this, management team of Tesco promote
their current employees on the basis of their performance. This is one of the best method as it
helps in motivating the employees and encourage them in order to perform their task in an
effective manner (McDonald and Hite, 2015). Apart from this, it is the method where managers
provide training sessions to their current employees, so that they can perform the assigned task
and duties in an effective manner.
External method: Under this method of recruitment, managers attract large number of
applicants in order to select best and suitable candidates for their vacant job position. It is the
best method as it helps in attracting fresh and new talent, which assist them in providing the best
outcome for a particular task. External method is the most popular and highly used method for
recruiting candidates.
On the other hand, selection includes various methods in order to select capable candidate
for their company. In the present context of Tesco, managers adopt interview method in order to
select candidates.
Interview Method: It refers to the method which is used by large number of organisations
in order to select best and suitable candidates for their organisation. In this method, managers
examine the skills and knowledge of shortlisted candidates with the help of face to face interview
method.
Selection procedure:
Preliminary Interview: It is the stage which is also known as screening interview. In
this process, candidates who are not eligible with the requirements of vacant job position are
eliminated from further process of selection (Rees and Smith, 2017).
Receiving Applications: This step is start only when the individual will qualify the first
step. For this, candidate need to fill an application form which includes information of an
individual such as age, gender, qualification, and many more.
Screening of Applications: All these applicants will further screen by the committee
members, then according to the selection criteria they make a list which includes name of the
candidate who they find suitable for the next step.

Employment test: Under this step, mental ability, skills and knowledge of the candidate
is examined by conducting various tests. These test includes aptitude test, personality test,
intelligence test and many more.
Interview: In order to gain more knowledge about the candidates, interview session is
conducted by the managers of company. In this, interviewer ask the question which is related
with their educational qualification, related to the job profile, about their family members and so
on (Shields and et. al., 2015).
Reference Checking: At the time of interview, interviewer ask about the reference of
candidates. Generally references are from universities, current or past employees of the company
and others.
Medical Examination: If it is necessary for the job, managers of the company take
medical or fitness test of their selected candidates. It is one of the most important step as it will
help the company to know the current physical and mental health of the candidates.
Final Selection: This is the last step where candidates who qualify all the above stages
give offer letter and ask them to join the company as soon as possible.
Critical evaluation:
Positive Impact Negative impact
Recruitment  One of the positive
impact is that it
motives the current
staff members of the
organisation.
 Along with this,
efficiency and
profitability of the
candidates increase day
by day.
 It is the method which
affects the working
environment of the
company as it creates
disputes and conflicts
within employees.
 This method does not
attract fresh talent.
Selection  It helps in attracting
fresh talent which helps
in enhancing the
 This is the time
consuming method
which affects the

performance of both
individual and
company.
 It helps in developing
new and innovative
goods and services,
which attract large
number of customers.
overall profitability of
the company.
Conclusion
As per the above stated, it has been concluded that company adopt internal and external
method for recruitment and interview method for selecting the best and suitable candidates for
their organisation. All these factors have both positive as well as negative impact on the
company.
3. How can an organisations reward package be enhanced to improve
motivation without increasing an employee’s salary?
Introduction
In the third section of this report, it has been discussed that there are some factors which
enhance the performance of employees without increasing the salary of employees. Some of the
reward packages includes gifts to the employees, incentives, appreciation and many others. All
these factors highly motivate the staff members and enhance the performance as well as
efficiencies in order to attain organisational goals and objectives (Stewart and Brown, 2019).
Main Body
Every organisation have their own policies and strategies in order to motivate their staff
members so that they can perform their task in an effective manner. Rewards, incentives,
appraisal positively affect both the employers and employees. By providing rewards and
incentives, employees develop effective working environment. Various companies adopt reward
packages so that they can motivate staff members without increasing their pay scale. Some of the
most effective reward packages includes:

 Recognition: It is the method which is commonly used by the managers of an
organisation in order to motivate them to perform their task in an effective manner. It is
very important for the management team of Tesco, to appreciate their employees if they
perform well in the workplace. Therefore, it is essential for the managers to provide
recognition to the best performer in order to create healthy working environment and to
encourage the staff members so that they will provide positive outcomes (Taylor,
Doherty and McGraw, 2015). Appraisal other then money: There are some benefits which is given to the potential and
capable employees of the company on a regular period of time so that they can attain the
goals and objectives of the company in an effective manner. By providing incentives,
monthly appraisal and many others might provide by the company to the staff members.
In the present context of Tesco, managers provide non monetary benefits to their
employees on a regular basis, so that they will be motivated and perform their task in an
effective manner and within given time frame. Provide holiday breaks: Apart from recognition, some of the companies provide holiday
packages to their highly talented staff members. Management team of the company
conduct holiday trips, picnics and many other things, to the employees who perform
effectively within the workplace. In the present context of Tesco, managers of the
organisation provide timely holiday breaks to their employees, so that they can feel fresh
and perform their task with more energy and positive attitude.
 Celebrate positive outcomes: If the employees produce positive outcomes, it is very
essential for the management team of the company to celebrate the results and appreciate
the employees by celebrating their success. It is essential for the managers to provide
feedbacks to the employees as well as appreciation, if they achieve the goals in an
effective manner and within given time period (Vance and Paik, 2015).
All these methods must adopted by the company so that they can enhance their current
reward packages and motivates the employees in an effective manner. It is very important for the
managers to motivate their current staff members so that they can create the positive working
environment.

Conclusion
As per the above mentioned report, it has been identified that one of the biggest factor
which helps in motivating the employees is time to time appreciation, providing them gifts,
monthly or yearly incentives. This will assist the management team of company in order to
motivate and encourage their employees in a positive manner and without increasing their salary.
It has been identified that by providing regular incentives and rewards to the staff members, it
will assist in motivating the staff members and attain goals and objectives effectively and within
given time period.
CONCLUSION
From the above mentioned report, it has been concluded that there human resource plays
very important role in the company as they provide assistant to achieve goals and objectives in
an effective time period. In this report, 3 sections are included where one part helps in
identifying the impact of appraisal on the psychology of an individual. With the help of this,
managers will be able to know the positive as well as negative impact of appraisal. In the second
section, it includes the process of recruitment and selection along with their critical evaluation.
At last, this report includes a detail description on the reward packages which helps in motivating
the employees in order to perform them in an effective manner without increasing their pay
scale. Therefore, it is very important for the companies to provide various incentives and other
non-monetary benefits to the staff members in order to enhance their performance as well as to
motivate them.

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