HR's Value and Contribution to Organisational Success - Tesco Analysis

This report examines the crucial role of Human Resources (HR) in organizational success, using Tesco as a case study. It explores the importance of organizational design theory in structuring the organization and aligning with its strategies, highlighting how it can improve profitability, customer service, and internal operations. The report also analyzes various approaches for attracting, maintaining, developing, and rewarding human resources to create a skilled and dedicated workforce, including human capital theory and knowledge management. Furthermore, it discusses change management, its relationship with organizational design, and how Tesco can adapt to changes using Lewin's three-stage model. The report emphasizes the significance of organizational design in responding to and adapting to changes in the business environment, highlighting the importance of a diversified workforce and inclusive practices.

Human Resources -Value and
Contribution to
Organisational Success

INTRODUCTION
Human resources are one of the most important resources of an organisation. Success of
the organisation mainly depends on the effectiveness of the human resources in the organisation.
This is because all other resources of the organisation will become meaningless if they are not
used by human resource of the organisation. This report will discuss factors affecting
performance of human resources and will discuss about importance of organisational design
theory in context of organisational structure and fulfilling strategy of the organisation. Different
approaches through which organisation can attract, maintain and develop human resource to
create a skilled workforce will also be discussed. Discussion in this report will contextualise
Tesco, British multinational groceries and general merchandise retailer. It was founded in 1919
and is headquartered at Hertfordshire, England. The retail organisation operates at 6800 locations
and along with this services are also available at online platform. Total employees that have been
employed by company are 450000 (Awadari and Kanwal, 2019).
PART 1
LO1
Importance of organisational design theory in the context of organisational structure and
fulfilling organisational strategy
Organization design can be defined as a step by step method which is employed to
identify the functional aspects of the organisation which includes aspects of work processes
structure and system and realise them so that they can fit current business goals and objectives
(Klein, 2020). This is followed by developing plans for implementing the changes in
organisation. Tesco applies organisational design it will focus on improving technical as well as
people side of the business.
Tesco once applies to design process in organization it will be able to experience improvement in
profitability Customer services and internal operations of the organization. This is because
organization design process will link all the aspects of organization from the strategy and goals

of organization. Thus it is very important that organization design process is employed by
organization specifically when there is a need to successful implement strategies of Tesco.
This discussion suggests how organization design is important for organizations. Tesco when
employees organizational design it will be able to experience benefits of organisation change in
organisational structure and fulfilling organisational strategy. Importance of organisational
theory in context of organisational structure and fulfilling organisational strategy in Tesco are as
follows-
Organization design is helpful in identifying dysfunctional aspect of organisational structure so
that they can be removed in order to improve process of organisation. Organisation structure is a
system in which roles and responsibilities of organisation are divided and identifying what are
the roles and responsibilities that are not required and removing this respect from organisational
structure can improve the work practices will contribute in enhancing quality of internal
processes of Tesco.
Removal of unnecessary roles in organisation will improve processing of organisation and
functioning will become more cost friendly e as well is time friendly. This means that in and top
to down approach of organisation senior management will be able to communicate faster with
the lower management (van Rijmenam, Schweitze and Williams, 2018). Through this they will
be able to complete the assigned task inadequate and required time because communication will
not take place in unnecessary the rolls that are not relevant with work.
Organization design as being a comprehensive and Holistic approach for Organisational
improves improvement will also provide benefits of excellent cut customer service and reduced
cost of operation. This will also improve efficiency and will reduce cycle time required for
completion of the task.
Tesco will be able to keep committed and engaged employees and its organisational structure
and integration and collaboration of people will become more qualitative. It will also ensure that
structure of organisation is relevant with strategy and objectives of organisation.

In present organisational structure where technology has become important and integrative to all
organisational activities it is very important that through organisation design those roles that are
not required are removed.
In relation with organisation strategy organisational design in enable Tesco to link it
strategies with design of organisation (Chión, Charles and Morales, 2019). Strategy includes
comprehensive detailing of roles and responsibilities of every person in Tesco organisational
design will ensure that only people required for implementation of strategy are there in
organisation.
In organisational change and its strategies organisational design plays important role in
Tesco. This is because change will require different functions of the organisation and they will
be designed through organisational design.
Regarding importance of organisational design theory in context of organisational strategies it
can be said that-
Dealing with Contingencies
This is most importantly linked with changing business environment which is one of the
biggest contingency and Tesco requires remaining ready and prepared to deal with
contingencies. Properly designed structure of organisation will allow Tesco to have better control
over its environment. Implementing change also become easy when organisation is properly
designed.
Diversity in Workforce
It is organizational design that allows organization to create and employ workforce that is divers
(Sims, 2017). This will allow Tesco to take advantage of diverse workforce within the
organization. Organizational design also facilitates management of diversity in the workforce.
Tesco employs diversified workforce and in order to ensure diversity and inclusion,
organizational design can help in designing processes and practices that are inclusive to every
employees’ requirements. This also helps in considering varied requirements of diversified
workforce and creates organization structure accordingly so that everyone can make their best
contribution.

LO2
Different approaches and techniques used for attracting, maintaining, developing and rewarding
human resources to create a skilled and dedicated workforce
Relation with process and practices of Human Resource Management attracting
maintaining developing and rewarding human resources is one of the most crucial tasks. In order
to ensure that Tesco has skilled and dedicated workforce it will require to adopt the right
approach is of recruitment retention development and rewarding human resources.
Approaches and Techniques of attracting Human Resource
Human Capital Theory
Human capital theory is a Theory that focuses on undertaking activities that enables
individual worker to raise the productivity. This theory is based on the belief that competent and
skilled workforce is able to increase productivity and hence investment in human capital is
indispensable for economic growth. Theory considered that investment in human capital involves
both direct cost associated with development and skill enhancement of human capital as well as
cost associated with foregone earnings. According to this theory human capital make investment
decision on the basis of comparison of attractiveness of alternative future income and streams of
consumption (Gillies, 2017). Human capital theory in theory that is based on earnings and this
theory explain the Seasons of individuals that is related to invest in in human capital in other
words decisions of individuals regarding their education and training and pattern of individuals
lifetime earnings. On the basis of this theory, different levels of investment in human capital help
in identifying and analysing expected Returns from the Investments. This means hire a person
invest in human capital on the basis of that earnings of individual are also likely to be high.
Considering this theory Tesco can make effective decisions regarding training and development
of human capital working in in organisation. This means that investment and their training and
development will increase their productivity and utility for organisation. Along with this their
earnings will also increase and this is one of the best approach using which Tesco Can attract
maintain develop and reward human resources and create a skilled and dedicated workforce.
Knowledge Management

Knowledge management can be defined a process of creating organising retaining and sharing
knowledge and experience of employees within organisation. Knowledge management is aimed
at improving organisational efficiency and retain expertise within organisation for future use.
Key activities involved in process of knowledge management are accumulation or gathering
knowledge and information and storing of knowledge and this is followed by sharing of
knowledge (Obeidat, Al-Suradi and Tarhini, 2016). Tesco by practices of knowledge
management can enable organisational learning and create a culture of learning and also
encourage sharing of knowledge within organisation. There are different approaches of
knowledge management that Tesco can utilise. Knowledge management can also play important
role in developing and creating a skilled and dedicated workforce within Tesco.
Human capital theory and knowledge management are interrelated as human capital theory focus
on development of human resources within Tesco and knowledge management can be a tool and
technique for developing human resources and creating skilled and dedicated workforce.
Monetary and non monetary motivations
For employees both the type of motivation is important. Monetary motivation ensures
that employees are getting something in exchange of of their performance in the organisation.
This is visible aspect of all the the efforts they have made in order to increase productivity in
Tesco. Non monetary motivation is also important because it gives a positive feeling that their
contribution is being considered and acknowledged by organization (Frady, 2020). Concerned
with non monetary motivation Tesco should employ the approach of recognition on small
achievements in which it can directly recognise a person even when people are not around. These
are small efforts through which employee can be motivated to improve their performance.
LO4
How organisational design has to respond and adapt to change management and the relationship
that exists between the two
Change management can be defined as a human centred approach to improving working
of people in organisation and how organisations respond to change.

The above definition describes relationship of organisational design and change (Eriksson
and Kadefors, 2017). Organisational design is a way of developing roles and working of humans
in an organisation that is crucial for the success of the organisation.
Change management is a process through which organisation prepare and equip it for
changes and followed by this it also support individuals of the organisation in adaptation of the
changes. Tesco also employ change management when the organisation plans to bring changes in
its processes. Change is crucial for growth because change in pervasive and organisation cannot
grow without implementing changes. The model of change management that organisation can
employ is three stage model of change management that was proposed by Lewin. The model
includes three steps of change and these are-
Unfreezing
This is one of the stage in which Tesco prepare it for changes in the organisation. This means
communicating about the change being implemented and answering all the queries about the
change. This also requires dealing with resistance of people regarding change because resistance
to change is very common.
Freezing
This is another stage of change management in which change in actually implemented in the
Tesco (Rosenbaum, More and Steane, 2018). This stage is important as Tesco requires to
constantly guiding people so that they are able to perform with changed processes of business.
This is also important in order to ensure that old processing and practices of the organisation
does not get refurbished.
Refreezing
This is final stage of change management in which after implementation of change it becomes
regular practice and new habit of people in Tesco.
Concerned with response and adaptation of change management by organisational design
it can be said that these two are closely linked with each other (Skogland and Hansen, 2017).
This means change in present business environment is because of technology and environment

and when change in organisation is brought because of these two reasons it becomes very
important that organisation design is changed. This is because organisation design is
configuration of organisational characteristics. This includes structural dimension, size, number
of vertical dimension in organisational structure and degree of specialization that is required for
operations and functioning of Tesco.
This is directly linked with change management, this means that change is firstly required to
adopted by the top management of Tesco and when there are high number of employees
employed in top management. This will require time for change management that it is adopted
by the lower level of management. Changes in technological aspects will require that changes are
made in degree of specialisation that is required for the functioning of the organisation.
In order to analyse relationship between change management Burke-Litwin Model can be
utilised. This is as follows-
Burke-Litwin Model
Figure 1 Burke-Litwin Change Model

This figure outlines relationship between different elements of organization and suggests how
organizational design is linked with organizational change. This model outlines that in
organizational design strategic factors are most important for successful transformation and
change within organization (Olivier, 2018). From leadership change come towards management
practices and then flows towards work units within Tesco. Each unit and level in organization
has different role in success of the organization.
This situation will require changes in organisational design because this will change the
degree of specialization required for functioning of the organisation. Changes in organisation
will also impact processes of the organisation and processes of the organisation are also part of
organisational design. This is another way in which change management and organisational
design are related with each other. Change management in this situation will require redesigning
organisation. Another relationship in change management and organisational design in Tesco is
that professional roles are changing in the organisation and this will also require changes in
design of the organisation.
Organisational design and change management share a very important relationship and
organisational design is process of shaping organisational structure and change management has
significant impact on this structure. Covid-19 can consider as one of the example of change
within organisation and because of these several changes were implemented in Tesco. This
brought several changes in how Tesco usually operates and run its activities. Positive impact of
this relationship is that change management many times facilitate decision-making during
change within organisation. This means during change through organisational design individuals
remain aware of their role and this lead to efficient decision-making. Every individual within
Tesco remains aware of their role when the change is implemented within organisation. However
one of the negative aspect of this relationship is that many times organisation becomes rigid and
decisions during change become delayed.
Relationship between change management and organisational design in Tesco is very
effective because structure of Tesco is highly hierarchical and this is why everyone is clear about
their role when change is implemented in organisation. This means that often top management
makes decisions and others follow those decisions and this makes change implementation
effective and simplified process.

PART 2
LO3
Covered in PPT
CONCLUSION
On the basis of above discussion it can be concluded that organisational design is very
important for the organisation. There are several benefits of organisation design but main
important of organisational design is associated with organisation structure and strategies of the
organisation. Organisational design theory facilitates implementation of strategies and along with
that they also improve organisation structure and make it suitable for change implementation.
Later the report discussed about approaches and techniques to attract, maintain, develop and
motivate employees. Increasing complexities of the organisation has required that organisation
focuses more on its employee side because talented and efficient employees are crucial for
success of the organisation. Later this report also discussed about relationship between change
management and organisational design and it suggests that adequately developed and designed
organisation can facilitate change management and its success.

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