Managing and Developing Innovation and Creativity: A Tesco Case Study

This report examines how Tesco addresses challenges in its Human Resources Management (HRM) through innovation and creativity. It identifies employee retention and attraction as key issues exacerbated by the global pandemic. The report explores various innovation methodologies, including Six Sigma, Agile, and Design Thinking, recommending the application of Six Sigma to improve employee retention and attraction. An implementation plan is outlined, detailing steps such as defining the problem, measuring the current process, analyzing the causes of issues, improving the process, and establishing controls. Furthermore, the report applies an innovation audit methodology, assessing strategy, idea generation, implementation, people/organization, and innovation output. Potential barriers to innovation, such as fear of failure, are also discussed. This assignment is available on Desklib, a platform providing study tools and resources for students.

Managing and
Developing Innovation
and Creativity

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK...............................................................................................................................................3
Identification of certain problem or need that presents within the organisation.........................3
Application of innovation or creative methodologies to the production of likely solutions.......4
Select a solution and make an implementation plan....................................................................5
Application of an innovation audit methodology.......................................................................6
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10
Books and Journals:...................................................................................................................10
Online:.......................................................................................................................................10

INTRODUCTION
Innovation is one of the most prominent things that helps organisation to gain long-term
competitiveness. Innovation refers to replace or improve something. It can be done on anything
such as product, service and process. Organisations have different choices to boost their
competitiveness, they can develop a differentiation strategy or price leadership. In both cases,
innovation is important. Innovation is often a new product or service, but it can also be a new
method or solution of doing something or even a new a manner of thinking. On the other side,
creativity defines as the ability to surpass the ordinary. It involves the critical thinking skill that
enables an individual to think out of the box and to come up with fresh and new ideas to
problems. This presentation is based on the Tesco Company. It is one of the global retail
companies that aims to offer groceries and general merchandise to its customers. The
headquarter of Tesco is situated in Welwyn Garden City, England. Jack Cohen was founded the
company in 1919. It has global business operations in more than eleven countries. This
presentation will determine the certain problem or need that presents within the industry, firm,
operational or market functional areas such as marketing, accounting, HRM or even operations.
It will apply some innovation or creative methodologies to the production of realizable solutions.
Then, it will construct a plan for the implementation of innovation within the business. At the
end of this presentation, it will demonstrate the potential issues that innovative solutions may
encounter, together with some recommendations has been done to overcome such barriers in the
plan.
TASK
Identification of certain problem or need that presents within the organisation.
In the regular functioning of the business, it becomes very essential for the organisation
to be focused on their key areas, domains, firm or even the whole industry. The changes can take
place at any time and in any way so that company must be ready themselves to ascertain those
circumstances with appropriate solutions and ways. Identifying problems and issues in the
company is important in order to resolve them appropriately and on time so that it won't affect
the complete functioning of the business. In respect to Tesco Organisation, it is seen that the
company is facing certain issues in the field of HRM. This functional area basically deals with
the management of human resources that is employees in the company. This area involved in the

process of hiring, recruiting, selecting, training and development, compensating and rewarding,
motivating, organising and coordinating employees for the better efficiency and productivity of
the organisation. HRM faces the difficulties in the retention and attraction of employees towards
their brand. As the global pandemic influences every business activity and functioning, it also
affects Tesco as most of the employees leave their organisation due to the insufficiency in the
work and HR management is highly responsible to look out these things. Identifying the right
candidate is also crucial to the organisation because if the right candidate is hired in the
organisation, then, it may lead the company towards success and achievements, but if one single
person is wrongly hired may affect the costs and expenses of the organisation, together with,
influences its business productivity. HR domain is the key area that looks upon each and every
department while identifying their needs and requirements of employees. This functional area
supports in fulfilling the seats by right candidate who have enough competencies and knowledge
to fulfil their obligations for the business. Hence, Tesco is required to resolve those issues in
their HR department so that they can right members in their business to attain the goals and
targets.
Application of innovation or creative methodologies to the production of likely solutions.
In addition to Tesco, it like to exploit industry proven funnels or methodologies and most
of the groups like to make their own. The following are four common innovation methodologies
that can be worked for the respective organisation:
 Six sigma: This methodology is most generally exploited to identify new efficiencies or
process enhancements. The key components of the innovation process cover define,
measure, analyse, enhance and control. By define the issue, measuring performance for
advancement and assembling enhancement suggestions and then plan is implemented.
 Agile: One of the reasons that most people utilise idea management in conjunction with
agile programs is due to the enhancement and prioritisation are the main parts of the
process. Product needs, feature requests can be submitted as ideas, prioritised by many
assessment methods and made-up and enhanced at the same time with the support of the
crowd.
 Design thinking: The best point of the design thinking is that it is socialised in the
corporate world and almost every person has something to share and through the best
idea can be generated. It will also help in creating more opportunities for the company.

 Global innovation management methodology: It helps decision-maker to identify and
define the objectives, perform research, align their tactic to their capabilities, create
concepts and build a case for specifically encouraging ideas.
Creative techniques for the Tesco:
 Brainstorming: The basis of brainstorming is to make ideas in a group situation
supported on the principle of suspending evaluation. In this section, Tesco state the issue
that they are trying to resolve. Exploit images and videos or anything that can support in
creating ideas, write down every conception and idea to inspire people to make on the
other's ideas.
 Negative brainstorming: It exploits brainstorming to make bad idea to the risen issues
in the business then see how those could me moved into useful solutions. It is a two-step
process, that involves of making bad solutions first and then transforming them into good
options.
 Random words: It helps in encouraging the imagination to make diverse views and new
angles on the view or the issue the company is facing. Tesco can prepare a lot of many
random words, tweets or short stories and put the on the board and being with the
brainstorming sessions. One the word has been chosen, list of associations and
attributions with the word. Then, use each of them points on the list and look how it is
applicable to the in hand problem.
Select a solution and make an implementation plan.
The problem which is identified in Tesco business is the employees' retention and
attraction in the business. HRM faces those problems and issues especially after the global
pandemic due to which various employees leave the organisation for many causes. For the
purpose to get the effective solution in the organisation, it is essential to use the innovative or
creative technique in the business so that the best solution can be applied. In respect of Tesco,
they are using six sigma innovative technique to resolve their current issues. The implementation
plan involves the following steps in respect of Tesco:
 Define the problem: In the prior stage a problem statement, goal statement, customer
requirement, project charter as well as process map are prepared. In the first step Tesco
defines the problem of increasing turnover of employees and the issue of attracting new
employees in their business.

 Measure the current process: Data is collected and gathered on the present performance
and problems. Evaluating the gathered information to see whether it is reliable or not and
update the project charter as per the requirement. In this secondary phase, the respective
organisation collects information about their employees. They will analyse how much
number of employees are retained in the business, how they can attract the new
employees and much more.
 Analyse the causes of issues: Now, in this phase, the data which is collected and
gathered in the last stage will be analysed. It will analyse the key reasons behind
employee's turnover or why they are not able to attract the new employees to fill their
vacant position.
 Improve the process: In this stage, the solutions have been found out to fix the problems
and make process maps for those new solutions. Take necessary steps to implement the
idea to continue to measure the enhancement. In respect of Tesco, they will try get the
new ideas to fix their specific issue in the business and this can be generated by doing
brainstorming sessions in which employees will be able to deliver their different
perceptions and ideas to improvise the process.
 Control: This is the last stage in which the new process is refined and monitoring will be
continued, as well as utilise key findings in the business, if accomplishable. In this phase,
Tesco aims to focus on their idea solutions and monitor to see the success of those ideas
in the business.
Application of an innovation audit methodology.
The innovation audit methodology defines as the method to comprehend the solutions in
which a company is able to deal and tackle innovation. In simple words, it deals with the
management of innovation to provide main functions of the business. There are five key stages in
innovation audit which are explained below in the regard of the certain issue faced by Tesco:
 Innovation strategy section: This stage is connected to plans and policies which should
be implemented by an organisation to accomplish innovation in the main business areas.
Innovation strategy audit should be used by Tesco for the purpose to do effective audit.
The deals with innovation strategy that should be done with the assistance of HR
professionals to attain their certain key goals and targets.

 Idea section: For the purpose of performing innovation audit, the idea associated to
innovation should be analysed. It is very important for the organisation to concisely
check and assess idea behind innovation and creativity. The auditor of innovation must
check data flexibility and assess whether it is practical or not.
 Implementation section: This phased analysed the implementation of process of
innovation should be assessed systematically. The innovation implementation should be
created and assessed effectively. Also, the auditor must make sure that implementation of
creative or innovative idea is done with right direction, together with control.
 People and organisation section: This is the phase in which the auditor of innovation
must assess all the stakeholders as well as their role in the innovation process. The prime
stakeholders in innovation process are the company and people who are associated to the
project. The main role of the audio is to examine the obligations of all the stakeholders
related with the project. In relation with Tesco, the major stakeholders are employees of
the organisation. The organisation should make sure that main functions of human
resources should be checked precisely in order to approach the set targets. HRM of Tesco
should allocate the employees as per their knowledge and skills in the position so that
they can perform better in the company.
 Innovation output section: This section deals with the main results of efforts and
contribution which are done in the company to attain the set innovative goals and targets.
The innovation audit must assess the main functions and objectives to the company and
concentrate on the contribution of every employee. Also, it is another essential obligation
of innovation auditor to take into account the main approaches for keeping records
associated with each and every employee.
Potential barriers in the way of innovation:
 Fear: One of the biggest reasons why most companies and individuals do not accomplish
their full potential is due to the fear of failure. There are no guarantees that new and
creative idea will work or not. It is important for the organisations to accept failures as it
is an important part of learning, progress and development.
 Lack of leadership: Innovation must be lead from the higher authorities. Often,
directors, chief executives or trustees do not assist or are not in the part of innovation as a

business driver. Apparently, they willing to do what they have already done for their
business.
 Short term thinking: It is another barrier that many organisations calculate on a one
year return on investment. Any new creativity or innovation is anticipated to have
immediate influence on the organisation. Under the pressure to offer return on a fast
mode, the research has been conducted in an inadequate way which leads to failure and
the innovation being perceived does not deliver the expected result.
Recommendations:
For the purpose of successfully implement the innovation plan in the business, it is
important for the Tesco to follow particular suggestions:
 Strategic Management: The strategic management can be beneficial in the development
of planning framework to create effectiveness in the business. For the purpose to develop
important plans and policies associated to strategic management, it is important for the
organisation to concentrate on primary goals and objectives and accomplish them with
the help of strategic management. This will also benefit at the time of uncertainties and to
reduce risk associated with the business operations.
 Focus on objectives and goals: The organisation must concentrate on all the major goals
and objectives which are created at the starting of fiscal year. It is also one of the
important role of an organisation to opt target oriented conception for the purpose to deal
with issues and consequences. In present times, it becomes very essential for the
organisations to create focused approach in dealing with goals and objectives to do main
practices associated with innovation. The key concentration of an organisation should be
on the development oriented objectives to offer innovation in a more advanced way. In
the situation of tough competition between various companies, it is becoming crucial for
the organisation to consider target oriented conception to accomplish targets and goals in
a particular time period.
 Business development: Development of entire company is the major approach which
should be accomplished with key tactics and actions. It is also one of the major role to
take into account main approaches which are associated with innovation and creativity.
Business development is a key aspect and goal of every business so Tesco should plan

accordingly. The business development is essential to boost revenue and profitability as
well

 HR professionals: It is also important for organization to use fair practices and policies
which helps in creating positive environment. This will help the organization to retain
employees in the business as they can see that their company is using fair practices and
policies for each and every member so that they can feel to do their work.
Simultaneously, this will also attract the new employees for the Tesco when they can see
the positive feedback and reviews about the company. HR professionals must be aware
about the processes and practices used in dealing human resources so that they can give
fair treatment to their employees.
CONCLUSION
From the above report, it has been concluded that innovation and creativity are the important
aspects that every organization need to develop and grow their business. Innovation puts
additional value in the current products, services and processes that helps in retaining employees,
together with customers of the business. It is must ensure that applying innovation does not
necessarily mean that it provides only benefits and profitability, sometimes due to the lack
proper research or resource can negatively influence the business. There should be back up plan
or the company must be ready themselves to accept failures and learn from them to not repeat the
same mistakes or errors that can cause damage to the business. New and creative or innovative
ideas can be generated through many ways such as brainstorming, negative brainstorming and
much more. Potential barriers should be identified by the organization so that they can overcome
and helps business in getting success. Innovation audit methodology helps in handling the
innovation activities efficiently and effectively.
(Akın, 2022)(Apodaca, 2020)(Beghetto and Kaufman, 2021)(Belso-Martínez, Mas-Verdu and
Chinchilla-Mira, 2020)(Camarero, Garrido and Vicente, 2019)(Cunha and et.al., 2021)
(Glaveanu, 2019)(Ma and Corter, 2019)(Muzzio and Gama, 2021)(Qin and et.al., 2020)
(Sharif, 2019)(Song, Wang and Ma, 2020)(Sullivan, 2020)(Travis, 2021)(Zameer,
Wang and Yasmeen, 2020)

REFERENCES
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Camarero, C., Garrido, M.J. and Vicente, E., 2019. Does it pay off for museums to foster
creativity? The complementary effect of innovative visitor experiences. Journal of
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Glaveanu, V.P. ed., 2019. The creativity reader. Oxford University Press.
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Online: