Organizational Structure and HR Contribution: Tesco PLC Analysis

This report provides an in-depth analysis of Tesco PLC, a leading global retail company. It begins with an introduction to the organization, including its history, structure, and key personnel. The report then delves into the concept of organizational structure, differentiating between hierarchical, functional, flat, and matrix structures, and identifying Tesco's hierarchical structure. It further explores organizational design, its elements (work specialization, departmentalization, chain of command, and span of control), and its relationship with organizational structure. The report identifies and explains two key approaches to HR's contribution to organizational design: high-performance management and resource-based approaches. It concludes by examining emerging HR developments, such as technological HR management and learning management systems, and how these practices are adopted within the context of the chosen approaches. The report includes recommendations and references supporting its findings.

Value and Contribution to
Organisational Success

Table of Contents
INTRODUCTION...........................................................................................................................1
PART 1 ...........................................................................................................................................1
Introduction to the Organization..................................................................................................1
Introduction to Organizational structure and structure of the Tesco Company...........................1
Organizational design and their link with organizational structure.............................................2
Two approaches to the contribution of the HR functions towards organizational design...........3
Emerging HR developments and adoption of HR practices in the context of chosen approaches
......................................................................................................................................................4
CONCLUSION AND RECOMMENDATION...............................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Organisation success refers to the process of growing and progressing of the
organization. It can be measure in any organisation term such as profitability, revenue
generation, turnover, brand image, customer satisfaction and achievement of organizational
objectives etc. It is very important for every organization and for that, they required sound and
sacred managers and leaders (Bailey and et.al., 2018).
Present report will give overview of the chosen organisation. It will highlight the
organisational structure, organisational design and its relationship with organisational structure.
It will also tell about the two approaches which can contribute the organizational design. It will
also demonstrate the emerging trends and their link with the approaches.
PART 1
Introduction to the Organization
Tesco PLC is a large global company established in year 1919. Its headquarter is in
Hackney, London, England, United Kingdom. It is one of the leading company in retail industry
in the world. It was founded by Jack Cohen. On the basis of the gross revenue, Company is
considered to be 3rd largest company in the retail industry. The company is providing its products
and services to the limited market such as United Kingdom, India, Ireland, Thailand, Malaysia,
Hungary, Poland and Czech Republic. Tesco Company has given employment to around
4,50,000 employees. Tesco are working under various industry such as Retailing, Banking,
Marketing, Telecommunications and hospitality industry (Tesco PLC (TSCO.L), 2019).
Currently, the key people of Tesco Company are John Allan, who is non executive
chairman and Dave Lewis, who is group chief executive officer (CEO). In year 2019, Revenue,
Operating income and net income are £63,911 million, £2,206 million and £1,320 million
respectively.
Introduction to Organisational structure and structure of the Tesco Company
Organizational Structure
Organizational Structure refers to the framework in which organizational roles, activities,
duties and functions are arranged in a sequential order which lead to build an ordered
configuration in the organization. It helps organizational staffs to understand how a company
would run and operate in systematic manner for the achievement of the organizational goals.
Types of Organizational Structure
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There are various types of organizational structures which are adopted by the
organization according to the size of the company, numbers of employees and objectives which
required to achieve etc. These organizational structures are as follows -
Hierarchical Organizational Structure
This organizational structure is one of the most popular organizational structure. It is
considered to be traditional one. In this structure, there are various management layers and every
employees has supervisors (de Sousa, 2018). This structure is constructed on the basis of power
and authorities.
Functional Organizational Structure
In this organizational structure, the company are divided into various departments on the
basis of the functions of the organization. Employees are grouping according to their skills,
knowledge and qualification. It is becoming popular nowadays.
Flat Organizational Structure
In this organizational structure, there is no management layers and employees work under
the manager of the company. Thus, there is no power and authority in this organizational
structure.
Matrix Organizational Structure
This organizational structure is the combination of the hierarchical and functional
organizational structure. In this structure, teams are forming according to the group of employees
who are in the same project or product line. But in this organisational structure, they have to
report their functional manager rather than product or project manager.
Organizational Structure of the Tesco Company
Tesco Company has adopted Hierarchical Organizational Structure. Due to its large size
and huge numbers of employees, its structure is highly hierarchical. This structure has three
management layers such as Top management level, Middle management level and Lower
management level. This structure has help company to define their roles and duties clearly which
lead to smooth functioning of the company (Gardner and Paulin, 2018).
Organizational design and their link with organizational structure
Organizational design
Organizational design refers to the procedures which helps company to achieve their
organizational goal by doing change in their structure, procedures and systems and redesigning
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them according to the changing business environment. It helps managers and leaders of the
business to create the departments, chain of commands and structure of the organisation.
Elements of Organizational Design
There are various elements of organisational design which must be considered during
organizational designing. These elements are as follows -
Work Specialization
During the organizational design, company must focus on the job tasks assign to the
given role positions. This is called work specialization.
Departmentalization
Department refers to the group of people who are involved in same kinds of activities.
Company should make sure about the efficient management of departments during organisation
design.
Chain of Command
Change in structure or roles will lead to change in chain of command. Chain of command
refers to the order in which authority and power will flow from top management to low
management. During the organisation design, company must take look upon the flow of chain of
command in the organisation (Gaspary, de Moura and Wegner, 2018).
Span of Control
It refers to the framework in which numbers of employees are supervised by the manager
directly. It will also change during the organisation design. Thus, company should focus on the
ideal span of control for the purpose of smoothing functioning of the organisation.
Their link with Organizational Structure
There is a direct relationship between organisation design and organisation structure of
Tesco company. Organisation design is considered to be the foundation of organizational
structure. Change in organisation design will directly impact the Tesco's organisation structure
which will also change accordingly. Change in organisation design means change in elements of
organisation design which lead to change in organisational culture and behaviour in Tesco
enterprise. This will lead to change in organisation structure adopted by the organisation.
Two approaches to the contribution of the HR functions towards organizational design
There are following approaches which contribute towards organisational design -
High Performance Management Approach
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High performance management refers to the process of improvement in performance by
creating co-ordination between personal goals of employees and objectives of the organization.
In order to align both goals and objectives in High performance management approach, Tesco
are doing assess and develop the required skills, knowledge, capabilities and behaviour which
lead to improvement in working style (Titov and Umarova, 2017). Thus, improvement in
working style will improve the performance of the Tesco's employees as well as organisation.
Improvement in performance will improve the working environment and organisational culture
of the Tesco firm which will reflect in organisational behaviour. Better organisation culture and
behaviour will improve the process of organizational design which lead to improvement in
overall Tesco organisation.
Resources Based Approach
Resource based approach refers to the availability of human resources which make an
organisation different from another organisation. Human resources should be valuable, rare,
irreplaceable and difficult to copy due to different personalities and skills possess by the
employees. Thus, Tesco should focus on their human resources in order to identify the strengths
and weaknesses of their. After knowing about their strengths, HR manager along with another
managers of the company should allot the task to the employee according to the skills and
capabilities and work on the weaknesses in order to convert it into strengths. This will help
organization to gain competitive advantages and company's organizational design will improve.
Emerging HR developments and adoption of HR practices in the context of chosen approaches
Emerging Human Resource Developments
There are various emerging human resources developments which are as follows -
Technological Human Resource Management
There are a lot of changes happen in the field of Human resources due to technological
advancement and changes. Today companies are using online review techniques, online skills
assessments, online rewards and recognitions and HR bots (Artificial Intelligence).
Learning Management System
Due to increase in competition level between organisations, every employees are required
to learn something new and that employees can be from top management or middle management
or lower management (Maduenyi and et.al., 2015). Thus, companies are adopting different types
of learning management systems in order to improve the efficiencies of the organisation.
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Human Resource Practices In The Context Of The Approaches
To adopt the learning management system, Tesco must have to use Resources Based
Approach in order to provide proper training, development and learning opportunities in order
to improve the skills, work style, knowledge and capabilities of the required employees.
To adopt the technological HR management, Tesco must have to use High
Performance Management Approach in order to improve the performance of the employees
by using technologies. This will lead Tesco to improvement in the performance of the employees
(Mansouri, Singh and Khan, 2018).
CONCLUSION AND RECOMMENDATION
From the above study, it has been summarized that for the successful organisation, there
are not only requirements of products and services or proper operational management. But also,
an organisation required a good human resource team. Human resource is an important part of
the organisation and they deal with the most important assets of the organisation – Employees
and Staffs. Also, they should focus on the organisational structure and design too which are
directly linked to each other as well as with objectives. Objectives also changes due to change in
external environment. Thus, human resource department should analysis the external
environment and try to link it with the organisational structure and design. Company should also
follow the latest trends and accordingly adopt the approaches in order to create good working
environment in the organisation.
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REFERENCES
Books and Journals
Bailey, C., and et.al., 2018. Strategic human resource management. Oxford University Press.
de Sousa, S., 2018. Understanding organisational identity as a factor influencing organisational
design. (Doctoral dissertation, University of Pretoria).
Gardner, S. and Paulin, S., 2018. The journey of self, nature, technology and sustainable
organisational design: insights for transformative leadership praxis. In Disciplining
the Undisciplined? (pp. 243-254). Springer, Cham.
Gaspary, E., de Moura, G.L. and Wegner, D., 2018. How does the organisational structure
influence a work environment for innovation. International Journal of
Entrepreneurship and Innovation Management.
Maduenyi, S., and et.al., 2015. Impact of organisational structure on organisational performance.
Mansouri, A.A.A., Singh, S.K. and Khan, M., 2018. Role of organisational culture, leadership
and organisational citizenship behaviour on knowledge management. International
Journal of Knowledge Management Studies. 9(2). pp.129-143.
Titov, E. and Umarova, L., 2017. Impact of real and propagated values on organisational
success. Congruence of personal and organizational values. pp.13-30.
Online
Tesco PLC (TSCO.L). 2019. [ONLINE]. Available through:
<https://www.reuters.com/finance/stocks/company-profile/TSCO.L>
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