Human Resource Management Report: Tesco, BTEC Higher National Diploma

This report provides a detailed analysis of Human Resource Management (HRM) practices, using Tesco as a case study. The report begins with an introduction to HRM, outlining its roles and responsibilities, including planning, recruitment and selection, training and development, performance management, and employee relations. It then delves into the strengths and weaknesses of various recruitment approaches, both internal and external, and selection processes. The report further examines the benefits of HRM practices for both employers and employees, such as conflict resolution, training and development, and building a flexible workplace. It then analyzes the effectiveness of HR practices in increasing organizational performance and productivity, emphasizing the importance of reducing employee turnover, providing flexibility, and implementing performance management and reward systems. The report also explores the relevance of employee relationships in the HR decision-making process, highlighting how strong relationships increase productivity and reduce the burden on the HRM department. The report concludes by summarizing the legislative impact on HRM employment decision-making and HRM practices in the context of work. The report is comprehensive and well-structured, providing valuable insights into the practical application of HRM principles within a real-world business context.

Human Resource
Management

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
LO1..................................................................................................................................................1
P1 Roles and responsibility of HRM...........................................................................................1
P2 Strength and weakness of recruitment and its approaches.....................................................2
LO2..................................................................................................................................................3
P3 Benefits of HRM practices for employer and employees.......................................................3
P4 Effectiveness of HR practices in increasing organizational performance and productivity...4
LO3..................................................................................................................................................5
P5 Relevance of employee relationship in HR decision-making process....................................5
P6 Legislative impact on HRM employment decision making...................................................6
LO4..................................................................................................................................................7
P7 HRM practices in context of work..........................................................................................7
CONCLUSION................................................................................................................................9
..........................................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
Human Resource Management is a strategic approach for effective management of
people through the process of recruitment and selection, induction and orientation of employees,
training and development and maintaining good relation with employees. In this report, Tesco is
taken as an organization. It is a British multinational retailer, headquartered in UK. It has more
than 360,000 employees worldwide. The core mission of Tesco is to make what matters better,
together. It serves millions of customers by providing wide variety of product and services
ranging from food, clothing, cosmetic, electronics and financial services. This report includes
purpose and scope of HRM in workplace planning to fulfil business objectives, different
approaches to recruitment, effectiveness of key elements of HRM in an organization and the
factors affecting the HRM decision-making process.
LO1
P1 Roles and responsibility of HRM
Effective HRM gives organization the ability to fulfil business needs by managing its
human resources. It is the vital part of every organization as it is related to people. Important
roles and functions of HRM are described below.
Planning: It is a procedure by which management ensures that organization is having right
number of people with relevant expertise that meets with the needs of the organization. In case of
Tesco which is a growing company, it requires people on a daily basis for all its business. Tesco
has its software to analysis the workforce requirement and do recruitment to meet future needs.
Recruitment and selection: It is the core function of HRM where new employees are recruited
and selected based on the needs by providing equal employment opportunities. Recruitment is
the process in which application for the job are invited (Berber, Đorđević and Milanović, 2018).
Tesco uses both internal as well as external source of recruitment. It first looks for internal talent
to fill the place if they are suitable or by providing relevant training and development
programme. It also advertises its job vacancies on its career portal for which applications are
available online and chosen applicants have interview process for final selection.
Training and development: After selection, employees are provided with some training and
development programmes to make them fit for the job. Tesco provides training to both freshers
and experienced employees for preparing them for high level of responsibility. It uses both on-
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the-job methods such as job rotation, internship, apprenticeship etc. and off-the-job methods like
classroom lectures, case studies, role-playing etc.
Performance management: It is a procedure used in evaluating the performance of the staff, to
maintain and improve the productivity of the group and meet the standard performance. It is a
process by which managers plan and review the performance of the employees and the
employee's contribution to the organization (Sivapragasam and Raya, 2018). Tesco uses several
methods to evaluate the performance of its employees such as team leader feedback, group
evaluation, target setting for individual or groups etc. which helps management in development
of work related skills of employees.
Employee and labour relation: In HRM, maintaining a good relation between employer and
employee is very essential. It is important to develop and communicate the strategies and
procedures to employees and labours so that both knows what is expected (Functions of Human
resource Management. 2019). Tesco has maintained a good relation with its employees at all
levels, making them understand the organizational mission and vision and also taking care of its
employees goals. It is working on aligning its goals with its employees personal goals.
P2 Strength and weakness of recruitment and its approaches
The hiring and selection process is a vital part for the growth of the organization. There
are several methods organizations uses to recruit employees which has its own advantage and
disadvantage which has been discussed below.
Recruitment: As a larger retailer, Tesco requires large number of workforce to achieve
organizational goals and aims (Ch, 2016). It mainly has internal and external sources of hiring.
From video or mobile recruitment to AI recruitment, there are number of ways HR manager can
identify and hire potential candidates but has its advantages and disadvantages.
Internal Recruitment: This is done through transfer or promotion which allows existing
employees to switch from current position to other. But is has its own strength and weaknesses.
Strengths: It has little or no cost and boost the moral of the employees, also it helps in retaining
the employees and reduce employee turnover and staff feels motivated to work hard and give
their best, no need to take interview and no risk of hiring unqualified employees.
Weaknesses: Filing the vacancy from the organization reduces the opportunity for other
potential candidates, missing out new ideas and opinion which external candidates can have and
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along with that it can cause workplace conflict and existing employees lose morale who are not
promoted.
External Recruitment: It is done by posting the job vacancy on the company's career portal and
applying through online application (Lench and et.al., 2019). Just like internal recruitment, it is
also carrying certain pros and cons.
Strengths: Automated recruitment system identifies right candidate which saves time and
money. It brings new ideas and perception to the business with more potential, huge pool of
applications are available to select and it also promotes brand and ensures high productivity.
Weaknesses: It is more expensive and time-consuming in terms of training new employees,
background verification, posting ads online etc. AI software might miss out potential candidates
if application is not formatted properly.
Selection: This process differs from one organization to another. Generally, it is done through
written test followed by interview. This pre-employment testing allows HR managers to assess
candidates potential and how they fit for the profile.
Strengths: Tests are more reliable than interviews, helps to eliminate bias.
Weaknesses: In interview, candidates may not be honest, test can be ambiguous, it also costs
company if application is rejected.
LO2
P3 Benefits of HRM practices for employer and employees
HR manager has multiple responsibilities to protect the interest of both employer and
employees. The main objective of HRM is to maintain effective human resource at workplace.
Some key benefits are stated below.
Conflict Resolution: HR managers communicate organizations policies and procedures and
workplace behaviour in order to avoid disputes within an organization to mediate matters such as
poor attitude, disrespectful workplace behaviour etc. which are helpful to both employer and
employees (Latorre and et.al.,2016). Tesco has properly executed its policies in the organization
to eliminate any conflict. A conflict resolution plan is also formed which helps in guiding how to
resolve the issue. It has issued a framework within which work needs to be carried out.
Training and development: HR managers organizes training programmes for the employees
based on the worker's need. They provide training opportunities so that employees can grab this
opportunity to gain additional skills and knowledge. These HR practices are helpful to all the
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employees and employers of the organization at all levels. Tesco provides training and
development to the employees, also it focusses on increasing employee loyalty and motivation
level to improve the employee performance.
Employee relation: HR managers provides support to its employees. Employees having feeling
discrimination or harassment can directly reach HR for help and assists employees on legal
matters. HR managers also tries to reduce disagreements between employees and employer to
avoid any legal problems (Stewart and Brown, 2019). Tesco is enabling this practice to
effectively to reduce employee turnover. Good relations makes employee satisfied and increase
their productivity.
Building a flexible workplace: Every organization wants to retain its employees by providing
them flexible work environment, work schedules, locations etc. In flexible workplace, employees
has the choice to customize the different aspects of the job with respect to the lifestyle. Tesco has
been able to raise its performance and productivity by providing flexibility to its employees. This
practice satisfies employers and employees and improves the overall performance.
P4 Effectiveness of HR practices in increasing organizational performance and productivity
Every organization aims to establish a good corporate relationship with its employees in
the workplace, which is very important to improve the productivity and profitability of the
organization. Some important and effective HR practices are stated below.
Reduce employee turnover: Employee turnover is an important factor that needs to be
considered before making any business plans (Lee, Werner and Kim, 2016). Increase in
employee turnover, increases the cost of human resource department as the hiring process incurs
cost on recruitment, selection and training and development of employees etc. Tesco is working
continuously to manage its workforce to reduce its cost and increases its profits. This practice is
very effective as it will result in better performance by the employees which may be the result of
increasing feeling of job security and satisfaction.
Providing flexibility: Reduction in turnover has a direct impact on the performance and
productivity of the employees. If employees leaves the company, Tesco will lose it's
experienced, talented and skilled employee of the organization because of which the overall
productivity of the organization will be hampered. For this reason, Tesco provides flexibility to
its employees with respect to work conditions such as time, location, schedule etc. which will
satisfy the employees consequently it will improve the performance and profitability of the
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organization. This practice if implemented carefully it will be very beneficial both for the
organization and the employees and will result in higher productivity.
Performance management and rewards: HR managers should review the performance of its
employees to analyse whether they are performing as per the requirement. Different practices can
be used to evaluate the employees performance and providing rewards for the same (Teodorczuk
and Billett, 2017). Tesco has come up with a number of reward programmes which encourages
and motivates its work force to improve its performance and reach the higher level. All this
together increases the productivity, revenue and profits of the organization. Implementing reward
system based on performance of the employees will help boosting the motivation level of the
employees resulting in higher profits and achieving targets.
Establishing good relationship: HR managers works on forming and establishing a good
employee and employer relationship where employees would be able to work without any
hesitate and clears any doubt with employers. Tesco has implemented this practice and review it
again and again to make any changes as per the requirement. It aims to establish a good
relationship among its employees by making them work in teams or groups. This practice shows
a positive impact on the overall performance of the organization. This practice should be
implemented and is very important because if employees doesn’t feel any connection towards the
work it will hamper the performance and productivity of the employees.
Thus, from the above it can be said that organization should further improve and focus on
providing flexibility to the employees.
LO3
P5 Relevance of employee relationship in HR decision-making process
The success of every organization lies the way the employee work together as a team that
implies strong relationship between employee contribute towards achievement of goals of the
company. So, HR is responsible for managing different people in the organization and co-
ordinating individual goals with organization goals. The way employee relationship impact the
decision-making process of HR management of Tesco is as follows:
Increases productivity: Strong inter relationship increases the efficiency of employee due to
pleasant atmosphere their morale increases, and they are highly motivated to work (Virtanen, P.
and Stenvall, J., 2018). It helps in reduction of burden of Human resource management
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department of Tesco as people are highly motivated to work in such an organization. Thus, it
increases production, profit margin and reduces the cost of production of the company
Reduction in conflict: The strong relationship between various employee reduce the chance of
conflict, or grievance as they are satisfied and happy with atmosphere of the company.
Therefore, employee are able to concentrate on their work and if any issue arises they solve
themselves without effecting smooth functioning of organization. The HR of Tesco is
responsible to solve conflict but due has a strong relationship employee are able to concentrate
on their work and help in achievement of goals.
Employee retention: The strong relationship help in retention of employee as the employee
feels a sense of togetherness and are satisfied, happy with the organizational culture (Veth, K.N.
And et.al., 2019). It helps in reduction of cost of recruitment, training and development of new
employee. So it also helps HRM department as HR is responsible for retention of employee by
satisfying there needs.
Loyalty: The employee are loyal to such organization that provide pleasant, friendly
environment, initiate their ideas and create a sense of belongingness. It also helps Tesco
company in increasing its brand image as loyal and satisfied employee promote the business and
provide best services to its customers. Thus, it is the responsibility of HRM for managing
different people and coordinating the goals of individual with organization it can be achieved by
strong relationship of employees.
Innovation and new ideas: Strong relationship between employee bring innovation, new ideas
in the company as employee become more comfortable and share its view, ideas. It helps HRM
department in anticipating changes or bringing news idea that can put the company at advantage
position. Thus, HRM is responsibilities for introducing the new employee, assign the work,
motivating it but by the help of strong relationship all this function are easily performed.
P6 Legislative impact on HRM employment decision making
Legislation for employment is made to provide protection to the employee of the
company from unfair dismissal and discrimination on the basis of religion, cast, gender or race
etc. Human resource department is responsible to supervise that all these rules and regulation are
followed or not while performing function. There are number of elements of employment
legislation that affect the HRM department of Tesco:
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Contract of service: It is a legal agreement between the employer and employee to render
service or work for the company, in return employee is paid for his service render and
employment right are also given to him. So, the HRM of Tesco company is responsible that the
employee sign the contract of service so that the employee is legal bind to work for the company.
Dismissal: There are certain rule and regulation on the basis of which the employee can be
dismissed or terminated and leave the organization (Hu, X. and et.al., 2018). It includes
misconduct or misbehave, incapable to perform as per requirement, less qualified and due to
redundancy the employee on such basis the employee may leave the company. So, HRM needs
to see that the individual has qualification for require post or not, capable or not and can
terminate in case of misconduct.
Employment Rights Act: It includes all the right of the employee that are required to protect the
employee from unfair practice of the company. It includes national minimum wage, term and
condition of work, health and safety. So the HRM department of Tesco should supervise that all
the rights are available to individual and present working condition is provided to them.
Sex discrimination: The employee should not be discrimination on the basis of gender during
training and development, promotion, selection process (Arevshatian, L and et.al., 2016). Thus,
the HR should not practice or do any type of discrimination in promotion and selection of
candidates.
National minimum wage Act: This law is made to provide equal pay to employee having same
ability, work and nullification (Van De Voorde, K., Veld, M. and Van Veldhoven, M., 2016).
The HR of Tesco should ensure it assigns equal remuneration to the employee having same post,
qualification otherwise it will lead to dis satisfaction among employee.
Work time directive: It set the maximum working hours of the employee that they have to work
48 hours in a week and should be provided a four-week holiday. The employee can work for
extra hours if they wish to do so. Thus, it helps HRM of Tesco in taking decision such as number
of leave, working hours of employee etc.
LO4
P7 HRM practices in context of work
It is the responsibility of HRM for management of employee by assigning its
responsibilities and providing training and development to employee (Haak-Saheem, W.
and Festing, M., 2018). For example: If an individual is new to organization the first
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responsibilities of HRM of Tesco is to provide a brief induction and explain its roles. After
it the HRM would arrange training so that the employee can perform its work smoothly
and effectively. HRM is also responsible for providing rewards and recognition in case they
work effectively. Its also one of the responsibilities of the employee to develop new skill of
employee so that the employee can easily make use of updated technology.
JOB SPECIFICATION
Job title Assistance of Human resource manager
Location UK
Reporting to Senior manager
Job purpose:
The purpose is to achieve the target of the company and managing the workforce effective
in the business operations.
Responsibilities and duties:
 Ability and capability to perform task of the company effectively and efficiently.
 Maintain good working environment of the company.
 Ability to solve the conflicts between the employees.
Communication skills:
There is need of the people who have proper listening and ability to communicate effectively
with other people. Effective strength is needed to build the good relation with the employees.
Service responsibility:
 Responsible to train and develop the knowledge and understanding of the employees.
 Responsible to implement new and advanced technology in the business activities.
Interview questions:
 What are the strength and weakness of the candidates?
 What is the expectation of the candidate about the salary?
 What is the education qualification?
Selection criteria
Experience Experience of 1 year in any organization.
Qualifications MBA in HR, M. Com.
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Skills Problem solving skills and effective communication skills.
knowledge Accurate knowledge and understanding of the training and
development programmes.
JOB OFFER
To,
John Michael,
We are delighted to offer you the job of the Human Resource Management Assistance in the
Tesco. The date of your joining is 20/01/2020.
Sincerely
HR team
RATIONALE
The strategies and policies of the HR in the company will work on improving and
developing the skills and knowledge of the people by organizing relevant training and
development program for the employees. By applying these effective practices of the HR it will
maintain the friendly and secure environment in the organization. The company will get the
skilled and talented workforce for the business by the recruitment and selection process of HR.
CONCLUSION
It can be summarized from above that Tesco with the help of effective HRM will be able
to effectively arranges its people at right place with right skills. The human resource department
has effectively use various elements in order to reduce labour turnover and to provide flexibility
to employees. Therefore, it helps Tesco in raising its productivity and profit margin of the
business by increasing the efficiency of employee. It's also explained the relevance of strong
connection and employment legislation in HRM decision-making process. At last this report
explain that there are various functioned performed by the HRM to satisfy and motivate
employee to work effectively. It explains about various practices of HRM in Tesco company and
the way they help the company in achievement of its objectives and goals.
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