Analysis of Human Resource Management at TESCO: Report

This report provides a detailed analysis of Human Resource Management (HRM) practices at TESCO, a multinational retail company. The report begins with an introduction to HRM, its functions, and its importance in achieving organizational goals. It then delves into the purpose and functions of HRM ...Read More

HUMAN RESOURCE
MANAGEMENT

Table of Contents
INTRODUCTION................................................................................................................................3
LO1 ......................................................................................................................................................3
P1 Purpose and Function of HRM in workforce.............................................................................3
P2 Strength and weakness of different approaches to Recruitment & Selection of TESCO...........5
LO2.......................................................................................................................................................7
P3 Benefits of HRM practices for employer and employees...........................................................7
P4 Evaluation of HRM practices in TESCO to increase profit and productivity............................9
LO3 ....................................................................................................................................................10
P5 Importance of Employee Relationship.....................................................................................10
P6 Key elements of employement legislation and its impacts.......................................................12
LO 4....................................................................................................................................................13
P7 Application of HRM practices in a work palce........................................................................13
CONCLUSION..................................................................................................................................17
REFERENCES...................................................................................................................................18

INTRODUCTION
Human resource management include handling of people working in the organisation and
guiding them to work more efficiently so that organisational goals can be achieved in short period.
Employees contribute in growth of the organisation so giving them proper training is very important
part for every working firm. TESCO is a UK based company founded in the year 1919 in london by
Jack Cohen. This company has generated £63,911 million revenue in 2019 (TescoPlc, 2019). The
reason of this achievement is TESCO's HRM practices as they work on employees training part and
apply different practices to make their employees satisfied towards the working environment.
Current report will have different functions of HRM along with its purpose and functions. Further
the report includes strength and weaknesses of different approaches to recruitment & selection of
TESCO. This study also give benefits of HRM practices for employee and employers and how can
it help out to increase the profit and productivity of the business with these practices. Further key
elements of employment legislation and its impacts is briefly described as they not following laws
by government can lead to loss of business. At last application of HRM practices in a work place is
described with the examples(Albrecht and et.al., 2015).
LO1
P1 Purpose and Function of HRM in workforce
Human resource management is the process which include recruitment of employees, their
training and development, motivating employees by appraising them and giving compensation
accordingly. This help in building good relationship with their employees and a healthy work
culture.
Functions of HRM: -
Recruitment and selection: - Main function of Human resource management is to select
best candidate for the suitable position in the organisation which can full fill both employees as well
as organisations need. TESCO is also facing many challenges to select best candidates who can
understand their work culture and can give 100% towards the organisation with their skills. TESCO
recruit candidates for a vacant position by analysing whether skills of candidate match for the
position or not. If it is not matching they keep their search going on and if candidate is perfect
match for the position they go for their training part. Purpose of this function is to get the most
deserving person in the firm(Bratton and Gold 2017).

Training and development:- When employees join an organisation they are not aware
about organisations work culture. To make them familiar about it, it is responsibility of Human
resource management to give proper training to new employees so that they can work more
efficiently. TESCO is conducting different training and development programs which help out the
employees to enhance their skills and able to bring new opportunity towards the organisation. These
training programs also help the employees of TESCO to learn basic operations which are used in
daily functioning of the business. To raise capabilities of persons are the major purpose of training.
Human resource planning: - To achieve business goals a proper planning must be there
and employees have to be guided that how can they reach their targets. For this TESCO have to
listen their employee’s ideas as well as problems and have to respond and make plans accordingly.
A proper planning helps the organisation to know the targets and ways to reach them with the help
of their employees good skills. TESCO's human resource managers scan the market and plan a path
to reach their business goals. They guide their employees and monitor their work whether they are
going with the planning or not. To retail skilled people and make them positive is the major purpose
of this function(Brewster and et.al., 2016).
Performance management: - It is responsibility of TESCO's HRM department to analyse
each and every employees work performance and whether they are satisfied with the job or not.
This can be done by setting goals for the employees and accordingly monitoring their performance
and behaviour to achieve the objectives of the organisation. If they are not able to perform well,
proper training is given to employees so that they can work on their skills to grab the opportunity
coming towards them. To improve performance of employees is the major objective of this function
, by evaluating their performance entity can arrange training for them.
Employees and labour relation: - As relation of employees and their employers plays an
important role for running an organisation smoothly and because of this reason only TESCO take
care of both employees and employers working in there organisation. The company never hesitate
to negotiate with their labours and listen to each and every problem that employees face during their
working hours. Company feels responsible in providing solution to every problem so that
employees can work more efficiently for growth of the organisation
Job Analysis:- If an employee is not working properly and outcomes are not appropriate then
it is responsibility of the human resource management to check out the reasons why employee is not
performing well. It may be possible that employee is not having skills to match the position or not
satisfied with the job. TESCO analyse employee’s efficiency by collecting different data related to
employee. They measure and analyse the information whether it matches with the description of the
job or not. After this they provide appropriate training to employees and make them satisfied
towards their work. To get the best person those who can contribute well in success of business unit

is the major purpose of this function(Cascio, 2015).
P2 Strength and weakness of different approaches to Recruitment & Selection of TESCO
TESCO is a multi-national company with its stores in different parts of the world. The
major consumer of TESCO is UK. Around 86% of total sales of TESCO is from UK only. It also
operates in different counties like China, USA, Japan, Turkey etc. TESCO has different stores
starting from local to big superstores. TESCO has more than 3,65,000 employees all over the world.
Recruitment means finding and tracking the best employee from the organization or outside
for a job vacancy in less time and incurring less expense. TESCO has always been recruiting
employees from all over the world based on their qualifications and their leadership skills. There are
two approaches to recruitment, that is, Internal Recruitment and External recruitment(Jabbour and
de Sousa Jabbour, 2016).
Internal Recruitment: In this process the employee within the organization is selected.
TESCO has always been in favour of recruiting employees within the organization. The employee is
either transferred or promoted to a new job in the same company. This method is cost effective as
well as increases the morale of the employees
Strength are:
 TESCO tries to retain its employees by giving promotion or transfers and retain the
expertise as employees are the important resource for every organisation.
 The company’s existing employees know the company well and so doesn't need induction
and basic training. The cost related to training people again and again will be reduced.
 The company already know the total output of the existing employee, so it is easy to check
which employee is lacking in which operation or task. Accordingly guiding them become
quite easy(Jabbour and de Sousa Jabbour, 2016).
Weakness are:
 There is no entry of new blood or knowledge in TESCO. This will lead to slow growth of
the firm.
 No Innovation or change is possible with existing employees which would have saved both
time and money of the company. Innovation is necessary as without any creativity customers
will not get attracted and there is huge competition in market.
 Still, the need of recruitment: After recruiting internally also there is a need of recruitment
because there is a job vacant of the person promoted or transferred (Noe and et.al., 2017).
External Recruitment: It involves recruiting employees out of the organization. It includes
various sources like advertisement on various platforms, campus placement and more. TESCO does
the most of its external recruitment by its website or through the vacancy board in all its stores. The
people chosen are interviewed and then selected. TESCO tries to use the most cost effective method

of external recruitment
Strength are: -
 External Recruitment will bring new skills and inputs which will be beneficial for TESCO.
As new employees will have different skills and this can generate new opportunity for the
firm.
 There will be healthier and good competition with other grocery companies.
 New employees will bring new ideas and skills which they learned from other companies
Weakness are:-
 There is very much difficulty in adjusting the new employee in the company environment. It
takes time and money to train them and make them comfortable to new place.
 External recruitment is an expensive affair. It will include extra cost to make arrangements
and set things accordingly.
 It is very time-consuming work for any company
Selection involves choosing the best employee available from all those people who have
applied for a particular job. The person selected is interviewed and then appointed. Selection in
TESCO involves following steps:
 Screening
 Interview
 Second Interview.
 Offer letter
Strength are:
 There is proper assessment of the person selected by the TESCO selectors. They analyse all
the skills present in the candidate and accordingly select them by checking whether they
match the requirement or not.
 Uniform chance is given to each and every candidate so that they can prove themselves in
front of selectors. As many a times recruiter also get confused to analyse who will be more
suitable for the vacancy.
 Due to selection process there is a reduction in Labour Turnover in TESCO and those who
aim to work for longer duration are only selected. This help the company to save time and
money(Nankervis and et.al., 2016).
Weakness are:
 People are not reliable and sometime after proper selection also candidate are not judged
properly.
 It is also possible that the interviewer is biased towards the candidate. He can approve the

wrong candidate and reject the good one.
 Candidates may not be saying everything right. It is possible that they are lying to the
selectors of TESCO(Noe and et.al., 2015).
LO2
P3 Benefits of HRM practices for employer and employees
HRM'S Key elements and their usefulness for Tesco
Founded by Jack Cohen in 1919, Tesco is a British multi-national retail store that deals in
groceries and merchandise. With over 6800 stores all around the world, Tesco has its operation
expanded to Europe and Asia. The key factor responsible for Tesco's success were its Human
Resource practices and elements(Sparrow, Brewster and Chung, 2016). Benefits of these elements
to employees and employers are:-
1. Training and development
Benefits to employees Benefits to employers
Boosts employees confidence and they feel a
sense of ownership while training at Tesco.
Easy achievement of annual sales target and
objectives of Tesco.
Employees at Tesco soon incubate skills like
adaptability, productivity and efficiency.
High standards and uniformity of work has
given a sigh of relief and entrustment to top
level management at Tesco.
Tesco provides certain freedom in decision
making, this further boosts the confidence of
employees and as a result , they become more
responsible.
In this rapidly changing environment, with right
training and skills, employees have given
competitive advantage to Tesco group which has
proved worthwhile to employers.
The environment at Tesco allows employees to
revamp their activities and re consider their
development performance(Noe and et.al., 2017).
Timely feedback by top level management to
employees has always proved worthy to
company in a long run.
Encouragement and motivation to work
efficiently with great effectiveness.
Efficient training of employees has lead to
reduction in work load of senior executives and
employers.
2. Flexible Working
Benefits to employees Benefits to employers

Flexible working facility at Tesco has reduced
the burden from the shoulders of workers and
thus they work without stressing too much.
Increased employee confidence and morale
through flexible working hours at Tesco has
always shown good signs for the company.
Tesco encourages and supports students to work
part-time at flexible hours in their store and this
leads to employment generation.
Tesco's image and brand has enhanced mainly
for the reason that it has always been
welcoming towards its employees
and that has been beneficial to the employers.
3. Payments and Rewards
Benefits to employees Benefits to employers
Along with the basic annual salary and wages,
employees are also subject to bonus and
incentives subject to their performance at Tesco.
Employers at Tesco have a great sense of
Knowledge for distributing and allocating work
according to one's wages so that it would be fair
for everyone.
Payments and Rewards are not just a source of
income but it acts as a source of motivation and
upliftment for employees at Tesco.
Fair payments and reward system has reduced
employee turnover rate by leaps and bounds
which is indeed good news for Tesco employers.
As per the Tesco values, employees are also
entitled to become an official member of the
company as the company issue shares to its
employees as rewards on the basis of their
performance.
Like its stated, adequate payment and reward
system boosts employees morale and as a result
the productivity as well as quality of work
improves. This is good news for
employers(Sparrow, Brewster and Chung, 2016).
Tesco's regulations includes maternity pay,
holiday and sick leave pay, other vouchers and
colleague bonus and discount.
Employers at Tesco earn great returns by
offering pay and rewards to employees
4. Performance Management-
Benefits to employees Benefits to employers
Timely feedback by employers at Tesco does not
reduce the morale of employees but on the
contrary it inspires them to work harder and
Employers at Tesco enjoy the advantages such
as improved performance, increased
productivity and trust of employees

improve their skills.
The workforce at Tesco are intelligent enough to
understand their duties in the company and
performance management allows them to be
more sharp and focused towards their work.
Tesco management has an estimated idea about
the strengths and weakness of their staff.
Therefore, performance management allows
them to transform employee's weakness into
strength.
P4 Evaluation of HRM practices in TESCO to increase profit and productivity
Training and development: -
It is most important part for TESCO to have good HRM practices as training and
development help employees of TESCO to get proper knowledge to work professionally in the
organisation. TESCO put lot of efforts and money in training their new employees so that they can
understand work culture of the organisation and can give their 100% for better results. Every
employee is trained on basis of his qualification. For example, If he is in finance department then
financial training will be given. This helps in developing employee’s skills towards his work
function and this will help the organisation to generate revenue with help of their skilled
employees(Sparrow, Brewster and Chung, 2016).
Flexible Working:-
TESCO's belief is to give flexible working hours to their employees so that they will not
work in pressure and this is possible when work load is divided equally among all the employees.
Different shifts are there and employees can work according to their capacity. If they want to have
incentives, they can do part time job. This will help in completing the tasks on time and also
employee’s satisfaction towards the job. They will work more efficiently without feeling any sort of
burden. There are intervals between the work so that employees mind gets fresher and they can
boost up there energy. In this way employees get enthusiastic and work hard to increase profitability
of the business(Sparrow, Brewster and Chung, 2016).
Payments and Rewards: -
Time to time encouraging employees by rewarding them for their good performance helped
out TESCO to achieve business goals as employees work more efficiently. These rewards can be in
form of bonus, gifts or appreciating in front of everyone. For increasing productivity and motivating
employees employee recognition is one of the best proven method, TESCO is well known for its
employee recognition criteria. It’s difficult to implement new a sticky rewards and returns. Tesco's
reward and recognition strategy is successful because it is in alignment with compnay mission,

goals and objectives. Tesco do keep extrinsic and intrinsic factors of recognition. Tesco's intrinsic
factors keep the employees motivated and encourage them to increase their efficiency. Tesco's
engagement with the employees has resulted in tremendous outperformance and has helped in
increasing its revenues to two and a half times greater than companies(Albrecht and et.al., 2015).
Performance management:-
Tesco's performance management is broad, continual and comprehensive process focusing
on future. Tesco's performance management has helped out its employees in achieving their goals
and objectives. It has helped out employees to increase their productivity and efficiency level. Tesco
measures current and future performance of the company and employees for assessing key business.
Because of there is increase in competition among employees for which they work more harder and
perform more better thery by increasing the productivity of the employees. Tesco is performing
various skill development and training programs, and spends a huge amount on their training which
ultimately results in increasing their productivity(Brewster and et.al., 2016).
LO3
P5 Importance of Employee Relationship
Healthy relations with the employees is one of the most important requisite for sustainable
growth of the company. Employer employee relationship means relation shared between employees
in the organisation. For higher efficiency and productivity there should be a strong understanding
between the employees and the management. Employee relations deals with issues having
individual concerns arising out of or might influence the work scenarios. A good and strong
employee relation will lead to a safe and healthy work environment, incentive schemes for
motivation of employees, involving and committing them in decision making. Good relations result
in more effective, productive and motivated employees taking the sales to a next level(Cascio,
2015).
The entire company is benefitted from a healthy and strong relation between the employees
and the management. If an employee is lost towards the competitor it can be devastating for the
whole company . Companies that do not have good employee relations have higher employee
turnover ratio. Employees remain more loyal towards their company who have better understanding
with the management. Successful companies are having good employee relation with the
management reducing the cost of hiring, recruiting and training new employees. A peaceful work
environment and workplace are among the benefits of the healthy employee relations. Pleasant
atmosphere is created within the organisation by strong employee relations, it helps in increasing
employee morale and keeps them motivated. Good relations leads to increase in productivity, and

that leads to increase in profits. Here are some of the ways through which they can be improved.
 Treatment of all employees as a separate concern in a good and fair manner by the
management.
 Make tasks interesting and challenging for the employees and assisting them through
training programs.
 Maintaining constant interaction with employees, management should keep employees
informed about the decisions, policies and procedures of the company. Involving employees
in decision making for developing a sense of belongingness to the company.
 Rewards, incentives and appreciation should be given to the employees for achieving their
targets and good performance for boosting them and to work together as a team.
 Being friendly and building a good rapport with employees for making them feel
comfortable with the management.
 Develop an equality atmosphere at workplace so that each employee feels important and
equal so that they yield more productively.
 Give them an image of ambition and success. Delegating tasks is important as it provides
with an opportunity of empowering teaching employees(Jabbour and de Sousa Jabbour,
2016).
Influence on hrm decision making
Policy is integral part of industry or organisation. Some employees are redundant to changes
they may not accept the policy changes. The policies are to properly framed for the long term
objective keeping in mind the employees concern. Product quality and quantity is affected by the
negative or inverse employee relations. Attitudes, values , behaviour and mental health are the
outcome of work organisation as it influences the values and work objective of the organisation .
Productivity is influenced and that will lead to decrease in sales. Management has to take decisions
those are beneficial for the employees and the organisation. Technological changes highly influence
an organisational environment as that requires highly and trained employees, but some people may
not feel comfortable with the new technologies which creates an another challenge on management
to tackle the technological change in the organisation. Changing needs of people with the span of
time goals and aspirations of employees changes from time to time they might be concerned with
work benefits, career growth, promotion , locations , work environment etc. Organisational
behaviours of the management towards the employees, there must be an improved group relation
and joint effectiveness. Unfulfilled promises of the organisations affect the reputation of the
company(Noe and et.al., 2017).

P6 Key elements of employment legislation and its impacts
Every individual employee working in the organisation have some rights as UK government
has made various laws regarding it, so that workers can work without a fear of not getting proper
wages.
The different laws are as follows:-
Equal pay 1970
This law came out in the year 1970 where every firm have to make sure that each and every
person working in the organisation get equal pay without discriminating according to their gender.
Men or women both will get equal wages according to job as they both give their best in full filling
their duties towards the organisation. It is responsibility of every organisation to provide same
salary and give same appreciation as this will motivate their employees to work hard. This law is
applicable on TESCO's HRM department also to pay equal on bases of qualification and job role.
This will motivate their employees to work more efficiently as their good performance will lead to
good pay out.This law impacts on recruitment and promotion decision of HRM, as now HR always
ensure that each person gets equal promotion chances in the firm.
Sex discrimination act 1975
According to this law it is duty of Human resource managers to take care whether any
discrimination is going in the organisation with respect to sexual differences. TESCO have to take
care about the discrimination related to gender. Equal treatment must be given to all the people
working in the organisation irrespective of male and female. Rewards must be given to employees
on basis of their performance level and not on basis of their gender. This will also help the
employees to work hard and give their efforts without thinking that they are not good in any way. If
any such action is seen in an organisation, then there are changes that employee may complain and
strict actions are taken by the government towards the company.
National minimum wage act 1998
This law was passed in the year 1998 by the government to ensure that all employees get
their rights and get proper wages for the work they do for the development of the organisation.
TESCO follow this law and provide proper wages to their workers so that they can retain in the
organisation for long duration. In this way there will be no need to hire employees again and again
and give them trainings. As the years pass inflation rate increases so it is duty of HRM of TESCO to
increase the wages yearly. Company takes care of all members of the organisation that their wages
are according to wage rates or not. Time to time giving appraisal can satisfy workers and can lead to
their better performance. This impact on payroll decision of company as now it has to design wages
asper the required standards.

It is necessary for all the organisation to follow these laws as a single complain from
employees can become hurdle in growth of the organisation. As one has right to raise voice for
wrong doings. In these cases government has right to cancel license of the company and can take
strict action to give compensation to employees(Noe and et.al., 2017).
LO 4
P7 Application of HRM practices in a work place
The most important HRM practice in a workplace is Recruitment and selection. This help
out the company to identify best people and hire them so that they can contribute for growth the
firm.
Job Title Marketing Executive
Reports to Marketing Head
Roles & Responsibilities  Generating leads from market
 Data handling of consumers
 Complaint handling
 Brand awareness
Qualification MBA or post graduate
Title of the job Marketing Executive
Date: 10/07/2019
Qualification required Essential Desirable Met
 MBA
 Post graduate
Yes
Yes

Need of Experience
 1 to 4 years in
marketing field
Yes
Personal characteristics
& conduct
 Technical skills
 Communication
skills
 problem solving
skills
 Creative skills
Yes
Yes
Yes
Yes
Roles and
Responsibilities
 Generating leads
from market
 Data handling of
consumers
 Complaint
handling
Yes
Yes
Yes
Yes

 Brand Awareness
CV
CV of first candidate
David Smith
15467543
[e-mail]
Skills
 Have good technical skills
 Communication skills
 Creative skills
Working experience
 Worked in XYZ firm as marketing executive from 2013-2017
 Worked as marketing manager in ABC company from 2017-till now.
Education
 Master’s in business administration from London University.
 Masters in Strategic marketing
Hobbies
 Like to explore new places
 Reading Novels
CV of second candidate
Oliver Brown
15467543
[e-mail]
Skills
 Have good problem solving skills
 Communication skills
 Team mangement skills
Working experience
 Worked in XYZ firm as marketing manager from 2014-2017
 Worked as marketing manager in ABC company from 2017-till now.

Education
 Master’s in business administration from University of Cambridge.
 Masters in Digital marketing
Hobbies
 Like to read books
 Play basketball
Interview Questions:-
 Tell me about yourself.
 Why you want to work with us?
 Tell me about your achievements.
Selection Criteria:-
 Good communication skills.
 MBA from a reputed institute.
 Good experience in the field of marketing.
Job Offer Letter
Dear David Smith
TESCO has selected you for the post of Marketing Executive. We trust you that with your skills
and experience you will contribute in growth of TESCO.
Your annual salary will be 350000 Pound. Based on your performance you will get Travel
announces and incentives apart from your salary. TO accept this offer kindly sign this letter and
send it back to official mail ID.
Sincerely
Human resource head
Signature
CONCLUSION
From the above study it has been concluded that HRM plays an important part to make the

employees responsible towards the work. This include human resource manager’s responsibility
towards the employees and organisation and how they coordinate with them to get better results in
future. Employees can be given a proper training so that they can learn about the different
operational functions of the organisation and can work smoothly. For the same HR have to follow
various legislative laws set by the government by keeping in mind employees’ rights and how they
have to be treated in an organisation. If these laws are not followed by the company, then their
license may be cancelled in near future. Employers and employee’s relation is key part for every
business as they only run the whole organisation. So, Employers should behave friendly as well as
politely with the employees so that they will listen to their leaders and get influenced with them. In
this way employees will work hard to extract different opportunity for the firm. These opportunities
will come up as new potential customers and will lead to growth of the firm. Human resource
management plays an crucial role for the development of the overall business