Tesco's Human Resource Management: Strategies, Planning, and Analysis

This report offers a comprehensive analysis of Tesco's Human Resource Management (HRM) system. It begins with a company overview and organizational chart, highlighting the hierarchical structure of the retail giant. The report then delves into Tesco's HRM model, discussing key activities such as recruitment, training, performance appraisal, and compensation. It examines legal and compliance aspects, including relevant employment laws and regulations, and explores HRM strategies and planning processes, focusing on employee motivation and workplace environment. Furthermore, the report covers performance measurement, the management of HR contracts, and concludes with a review of training support, human resource return on investment, and the ethical framework. The report provides insights into Tesco's approach to employee management, including the importance of ethics, training, and performance management in achieving organizational goals.

Running Head: Human Resource Management 1
Human Resource Strategy Planning

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Contents
Company overview..........................................................................................................................3
Organizational chart.........................................................................................................................3
Human resource management system.............................................................................................4
Training support...............................................................................................................................6
Human resource return....................................................................................................................6
Legal and compliance......................................................................................................................7
HRM strategies and planning process.............................................................................................7
Performance measurement...............................................................................................................7
Managing HR contacts....................................................................................................................8
References........................................................................................................................................9
List of figures
Figure 1: Tesco's organizational chart.............................................................................................3
Figure 2: HRM model......................................................................................................................4

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Company overview
Human resource management is the essential part for the effective business operations in
every company. For the discussion, famous retail company Tesco is selected. Tesco is famous as
the largest company in the private sector of UK. In current time, there are around 360000
employees working in Tesco. Now, company is operating in almost 12 countries including Japan,
UK, China and Turkey. Core business operations of the company are in the grocery sector. Tesco
has diversified its range of products and services such as mobile phones and personal finance.
The report provides human resource system and organizational chart to analyze that how HR can
contribute and impact on the growth and success of the company (Zhao, 2014).
Organizational chart
The organizational structure of Tesco is hierarchical that reflects large size of the
business. At the store level, there are four layers of management in large stores. The
organizational structure of Tesco is described below. It is essential to note down that the given
structure is not rigid for all the Tesco stores as some stores are operating with the different
structure including their size, location, and various specific factors.

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Figure 1: Tesco's organizational chart
(Source: Tesco, 2017)
Human resource management system
In case of human resource system of Tesco, there is the guest model which describes
overall strategy of human resource management. The human resource system of the company is
divided into five different stages i.e. HRM practices, HR outcomes, behavioral outcomes
performance outcome and financial outcomes.

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Figure 2: HRM model
(Source: Khalid & Rehman, 2010)
The human resource department of the company depends upon five basic activities such
as recruiting the employees, training and development of the employees, performance appraisal,
compensation and improvement of the employees. In the HRM system of Tesco, there are
various activities such as recruitment talent analysis, programs to retain the employees, provision
of good working environment and ensuring the employees to be treated equally. Based on some
frameworks, human resource of the company will be successful in achieving organizational goals
(Khalid & Rehman, 2010).
Legislative-
In the legislative framework, there are some laws which have to followed by the
company i.e. health and safety act 1974, working time regulations 1998 and parental leave 2008.
There would be new performance management based on the role of employees, objective of
work and types of appraisal. HR managed will, try to implement 360 degree feedback to
understand the performance of the employees. Company trains employees on the disaster
management which is positive for the staff. The staff receives such training so that customers can
shop with safety as staff is responsive and trained. In terms of human resource model, Tesco will
be evaluated on using range of various models to make sure that is meeting its core business
objectives. For the rewards and wages, Tesco will be in line with the existing laws and rules and

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pay salaries based on the minimum wage law. With the increase of annual profit, the salaries and
rewards will also be increased for the employees. Such rewarding of talent would have positive
impact on the employees as well as company (Syed & Yah, 2012).
Organizational and business ethics framework-
In the business and organizational ethics framework of Tesco, human resource would
focus on the principles of ethics rather than providing products and services. In this manner,
human resource will be focused on the implementation of standards related to right, wrong
fairness and other behavioral practice in the company. Ethics would be helpful in sharing the
decisions taken by the management. Human resource management would need to train the
employees with the expertise for ensuring the key skills sets among the employees.
Training support
In Tesco, managers can identify the needs of training support by the performance
measurement of the employees. Further, managers can identify the needs of training based on the
analysis of three needs i.e. industry-related needs, job-related needs and task-related needs.
Managers can also use some assessment methods for identifying the needs of training like
organizational perspective, task related perspectives and individual assessment. By focusing on
every type of training need before moving forward in the business, managers would implement
best course of action for the company. Each assessment will be helpful in improving various
aspects of the company and develop specific training programs to address essential gaps in the
company. By these assessments, managers would also be able to improve effectiveness of the
company (Waal & Kourtit, 2013).
Human resource return
It is estimated that the cost of the project of human resource is $230,000. It is also
assumed that benefit of the project for 1st year is $430,000. So based these assumptions, human
resource return on investment is as follows:
HROI= Net project benefits / Projects costs
Cost of the project = $230,000

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Benefits of project (1st year) = $430,000
So, HROI = $430,000-$230,000 / $230,000
= 0.87 x 100
=87%
Legal and compliance
There are number of legal regulations that are needed to be considered by the HR
managers while formulating the business operations. Employment protection is one of the major
areas that directly impacts to the process of HR policy development in Tesco. Further, health and
safety are primary factors as per the Health and Safety at Work Act 1974. Equality rules have to
be followed by Tesco under Equality act 2010 to protect employees from discrimination.
HRM strategies and planning process
One of the important aspects of HR department is related to the development of the
various tactics and strategies for the organizational growth. The management of Tesco is focused
on the HR strategies for achieving corporate objectives. For this manner, HR managers are
focused on motivating employees for the business activities. It is an important part as more
motivated employees, better would be their performance. HR is focused in developing the
workplace environment more effective for the employees. Further, training and development
sessions are also conducted on the regular basis so workforce can be enhanced and motivated
efficiently (Briscoe, Schuler & Claus, 2011).
Performance measurement
In Tesco, performance management system has aim to ensure the business objectives are
met by the employees. It is the strategic tool to measure the performance of the employees at
work. By the performance management system, company is able to analyze individual and
groups’ performance and competencies objectives. For implementing performance management
in the company, managers should considered ‘integrated training facility’ to provide essential

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training based status and responsibility of the employees to achieve performance goal. In
performance management system of Tesco, there are six components i.e.
 Performance planning in the performance management system,
 Performance appraisal and review,
 Feedback on the performance of employees by managers,
 Pay and reward system i.e. annual compensation, bonus, perks and rewards etc
 Performance improvement plans by training, mentoring or coaching, and
 Potential appraisal of employees including promotion and growth plan (Aguinis, 2013)
Managing HR contacts
To manage the HR contracts in the company Tesco, there is the need the need to adopt an
effective system of process. The steps for managing the contract are described below:
 Reviewing the existing contracts and making appropriate changes,
 Making clear that what changes are required and comparing them with the original
contract,
 Sending changed documents to the employees, making them comment, amendments or
flag any kind of queries and send back to the management,
 Keep the track of all the comments done by the employees,
 Review and incorporate the changes as required, and
 Sending changed contracts back to the employees for the approval and acceptance
(Gurbuz, 2009).

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References
Aguinis, H., (2013), Performance management, (3rd), NJ: Pearson/Prentice Hall
Briscoe, D.R., Schuler, R.S., & Claus, L., (2011), IHRM: Policies and Practices for
Multinational Enterprises, (3rd), Routledge: Chapman & Hall
Gurbuz, S., (2009), The effect of high performance HR practices on employees’ job satisfaction:
Istanbul University Journal of The School Of Business Administration, 38, 110-123
Khalid, G., & Rehman, M. Z., (2010), Impact of HRM Practices on Orginizational
Performance: NUML Journal Management and Technology, 16-27
Syed, N., & Yah, L., (2012), Impact of High Performance Human Resource Management
Practices on Employee Job Satisfaction: Empirical Analysis: Interdisciplinary Journal of
Contemporary Research in Business, 4(2), 318-342
Waal, A., & Kourtit, K., (2013), Performance Measurement and Management in Practice:
International Journal of Productivity and Performance Management, 62(5), pp. 446-473
Zhao, S., (2014), Analyzing and Evaluating Critically Tesco's Current Operations Management:
Journal of Management and Sustainability, 4(4), 184