Exploring HR's Impact on Organisational Success: A Tesco Analysis

This report examines the role of Human Resources (HR) in contributing to the organisational success of Tesco, a British multinational grocery and general merchandise retailer. It delves into organisational design theory and its importance in structuring the company to meet its strategic goals, highlighting Tesco's use of a hierarchical structure and its advantages. The report identifies various techniques and approaches for attracting, maintaining, developing, and rewarding employees, including synchronising recruitment and engagement, branding, workforce involvement, recognition, and development opportunities. It further discusses emerging HR developments such as hybrid work models, diversity and inclusion initiatives, employee upskilling, and the use of employee experience platforms. The report concludes by emphasising the importance of change management and effective communication in implementing organisational changes within Tesco.

HR and contribution to
the organizational
success

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1. Organisational design theory and its importance in the context of organisational structure
and fulfilling organisational strategy..........................................................................................3
TASK 2............................................................................................................................................6
P2. Identify different techniques and approaches used for attracting, maintaining, developing
and rewarding..............................................................................................................................6
TASK 3............................................................................................................................................7
P3. Evidence for emerging HR developments...........................................................................7
TASK 4............................................................................................................................................8
Covered in PPT...........................................................................................................................8
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10
Books and Journals:..................................................................................................................10

INTRODUCTION
Human resource is known the as human asset or human capital in the organisation.
Human resource management defines as the process of employing and selecting people, training
and developing, rewarding and compensating, developing strategies to retain those people,
evolving plan and policies relating to them are also the part of this process. In every organisation,
HRM department plays a very prominent role as it directly deals for the purpose of employees
who work in the organisation (Bratton and et.al., 2021). The following project will be based on
Tesco Company which is a British global groceries and general merchandise retail company in
United Kingdom. The headquarter of this retail organisation is in Welwyn Garden City, England.
It retails its products and services into many areas such as clothing, telecom and internet
services, financial services, toys, electronics, books and many more. In this project, the
prominence of organisational design theory in context to organisational structure will be
outlined. Different approaches, together with techniques used for attracting, developing,
maintaining and rewarding employees to evolve a dedicated and skilled workforce will also be
outlined. At the end, there will be an identification on to support evidence for emerging HR
developments.
TASK 1
P1. Organisational design theory and its importance in the context of organisational structure and
fulfilling organisational strategy.
Organisational design theory can be explained as the framework that highlights how an
enterprise structures itself for accomplishing normal activities. For the business organisations,
there are different forms of organisational designs are acquirable, with each one indulging
definite merits and demerits. There are different types organisational structure which can be used
by the larger business entities in order to establish a flow of communication and to report their
work. These structures can be functional, matrix, divisional, networking or team which supports
organisational manager to determine their departmental groupings. These structure are adopted
as per the needs of business companies (Banfield, Kay and Royles, 2018). In a research, it is
found that Tesco is using hierarchal organisational structure in their business. With this structure,
the obligations, responsibilities and positions are divided into various sections to make sure the
job will be accomplished smoothly and efficiently. Individuals at the top of the pyramid of

business have the most obligations and authorities as well. It is also observed that this kind of
organisational structure is most commonly used by many firms. For example, with the help of
this organisational structure, as executives assigned roles and responsibilities to their employees
and divide their work into groups would help in attaining the goals and objectives in the most
efficient manner (Zaid, Jaaron and Bon, 2018). As in the large organisations, there many are
departments and sections such as HRM, marketing, research, or finance every department has
their own work and specialisation due to which better results can be attained for the organisation.
In context to Tesco, the regional manager assign the work to their store manager and then he or
she assigned further responsibilities and obligations to other three executives such as personnel
manager, food trading manager and non-food trading manager, then, further, food trading
manager divide work into two more executives that are fresh food section manager and ambient
food manager, whereas, non-food trading manager divide work into their two more executives
such as electrical section manager and clothing section manager and so on. In this way, Tesco's
store section divided their work into small parts so that better results and objectives can be
realised for the businesses.
Importance of organizational design theory:
 The hierarchal organisational structure used by the Tesco organisation work very well in
organisation that merchandise products and services in the B2B industry. It helps in
making sure that employees perform their assigned roles and responsibilities in the very
Illustration 1: Tesco organizational structure

well manner (El-Ghalayini, 2017). It supports in monitoring work at each level and
various managers to oversee various departments.
 It is simple to understand who is in charge as well as follow the chain of command. It
focuses power and management operations which makes it east for workers to identify
who they ought to report to. Also, it eases the decision-making process as decisions are
taken by senior level management and employees need to follow the orders.
 Since the organisation has detailed departmental divisions within the hierarchal structure,
workers and staff members have unique obligations in their sections. It assists them to
particularize in certain jobs and enhance their competencies as well. In addition, the
organisation has many internal centres where staff members can specialise for maximal
productivity.
TASK 2
P2. Identify different techniques and approaches used for attracting, maintaining, developing and
rewarding.
In UK, there is a strong job market, and employees prefer organisations with good
cultures, advancement opportunities and competitive pay. In a competitive hiring environment, it
is very important to identify the way to attract great pool of talent towards the organisation and it
can be done by giving a strong organisational culture as well as opportunities for people to
develop (Ling and et.al., 2018). In respect of Tesco Plc, different approaches and techniques are
identified in order to attract, maintain, develop and reward talent in the company. Some of them
are detailed below:
 Synchronize recruitment and engagement: HR experts leaders and employees should
make plans to share information between those accountable for employing and those
responsible for individual engagement, employee development and many other strategies
for retain them in the organizations.
 Consider branding as part of recruitment: Branding is something that commonly deals
for the purpose of attracting and retaining consumers, but branding is also important to a
booming recruitment strategy. It is important to focus on what the company is telling the
world about their business, along with its culture. In addition to Tesco, it is important that
HR should promote the commitment of their brand to an employee-centered work

environment as well as broadcast the manners that the business engages and reacts to the
employee's interests (Analoui, 2018).
 Involve and engage the workforce: Employees may exhibit for their jobs and work, but
it is essential to determine whether they are productive and engaged enough or not. It is
found that individuals are more committed when there is a process for them to contribute
their suggestions and ideas. In addition to Tesco Plc, in order to foster the work
environment, there should be exchange of ideas within other sections by sponsoring a
yearly idea exposition, during which employees may show ideas they are working on.
 Recognize, reinforce and reward: Monetary values and other benefits are pivotal to an
individual to get attracted and retained in the organisation, but recognition and reward
support meet that general accomplishment need to feel rewarded, together with
appreciated for what one does (Majumder and Mondal, 2021). A successful reward,
along with recognition program does not have to be complex or consist money to be
impressive. Tesco employers needs to ensure that recognition and reward must be a main
part of their compensation packages. It supports in developing supportive work culture,
promotes employee engagement and highly contributes to retain employees.
 Develop the potential of individuals: Educational and training opportunities becomes a
very significant part of the organisation. They signified as important as the money to the
employees. In a research, it is found that many employees leave their organisation as they
did not find any kind of growth or leaning opportunities while working for the company.
They find new jobs and careers outside the organisation in order to have professional and
personal growth simultaneously (Farooq and et.al., 2022). Hence, Tesco should conduct,
employees satisfaction survey once a year which could help in tracking the feelings of
employees about their work culture, benefits and pays.
TASK 3
P3. Evidence for emerging HR developments.
Human resource development is the framework that works for improving the human asset
of the organisation by enhancing both the organisation and employee to be fully functional. This
is a contemporary idea that deals with the difficulties, challenges or issues that might arise within

the organisation or with the employees working for it. In addition to Tesco Plc, the following is
the discussion on emerging HR developments:
 The hybrid work model is the new normal: The global pandemic has forced the
business organisations to adopt hybrid model of working where staff members can
continue to work on remote basis and can also perform their obligations from the official
premises (Zhao and Zhou, 2021). HR employers would like to enable their workers to
split their work timings between working from office and remote working post pandemic.
This kind of working model supports employee to empower themselves while supporting
in engagement even in the high times of business.
 Diversity, equity and inclusion are the increasing needs: The global pandemic has
made the requirement for higher empathy and more inclusive and humane work culture,
which has promoted the company to concentrate on diversity, inclusion and equity. DEI
in the organisation is possibly like to become the utmost concern for the HR in the
upcoming times. In addition to Tesco, HR should make plan to spend more in inclusion
and diversity to prod growth and innovation in their business.
 Employee upskilling and reskilling will be in focus: In the fast pace business
environment, most of the skills that were developed after for a job may not applicable or
sufficient in the next coming years. This makes business organisations to concentrate on
upskilling and reskilling their current staff members. This is the cause which makes
workers to shift their jobs to other organisations.
 Employee experience platforms: In present times, employees deserve much more than
just a good work culture and good pay and benefits. Workers will not hesitate to examine
and assess the strategies for jobs, business cultures, remuneration, growth opportunities
and many more on the multiple job portals such as LinkedIn or Indeed (Abner, Kim and
Perry, 2017). In addition to Tesco, it is important to use innovative HR tools and
technology to increase the employee interaction to share feelings, thoughts or any kind of
emotion with other one.

TASK 4

Speaker Notes:
Sometimes, it is crucial task for the HR manager to implement change in the business as requires
planning, convincing employees to adapt change, provide them training and development
sessions to improve their skills and abilities to work with the new change (Bughin and et.al.,
2018).

Speaker Notes:
They retail their products and services in the way of clothing, toy, petrol, electronics, books,
internet and telecom services, furniture and so on. This presentation will discuss change
management models and theories. It will also outline the role of HT in designing organisational
structure and managing change (Doppelt and McDonough, 2017).
Speaker Notes:
The top level managers possess high authorities and power over their executives and regular
employees and flow of communication is done in the top to down approach. Employees are
required to follow their superior's decisions and choices for the business, whether they like or
not. Hence, it is found that this structure somehow creates problems and issues among employees
as they feel less involved and valued in the organisation (Doppelt and McDonough, 2017). Due
to this cause, many of the employees leave their organisation and attempts finding some other
jobs.

Speaker Notes:
As the divisional organisational structure will be the change for the employees, there is need to
communicate the reasons and significance for the change implementation so that key purpose
can be realised by the employees. In addition to Tesco, the divisions of their organisation have
control over their own resources, especially operating like their own business within the bigger
firms. Each section can have its own sales team, marketing team, IT team and many more
(Bughin and et.al., 2018). It helps in empowering the several decisions to make choices without
everyone having to report to just a few employees. As the Tesco is a multinational firm it can
segment or create divisions into clothing, furniture and electronics from its logistics or food
divisions. Hence, this form of change can deliver flexibility in work. It enables faster response to
the customer needs.

Speaker Notes:
External environment: It supports in analysing direct and indirect impact to the company.
Tesco needs to carefully assess all the external factors that have an influence on the business so
that better implementation of change can be done as per the need of organisation.

Mission and strategy: The business vision and mission accompanying strategy are created by
the top level management. The managers of the chosen organisation have to ensure that change
in organisation always support in the goal achievement (Dalli Gonzi and Grima, 2019).
Speaker Notes:
Organisational culture: For the respective organisation, there is a need to create positive work
culture in which employees can say about their opinion or ideas. Also, there should be fair
practices so that employees do not feel detached in the organisation (Wang, Demerouti and Le
Blanc, 2017).
Structure: Currently, the chosen organisation follows hierarchical organisational structure in
their business.

Speaker Notes:
Management practice: In addition to Tesco, the managers effectively implement new plans and
strategy with the support of their employees. Also, give importance to the employee's feedback
so that the change can be effectively implemented (Quirke, 2017).
Speaker Notes:

Task and skills: It is all about placing the right employees to the right positions. It is the high
responsibility for the HR manager to analyse the needs of areas and fill them with right
employees by increasing their skills and knowledge as well.
Individual values and needs: In addition to Tesco, managers need to ensure that employees will
get fair remuneration, compensations and work life balance so that feel motivated in the
organisation. Hence, there is a need to make sure that needs and values of both employees and
organisations satisfied.
Motivation level: The motivated employees gives their full contribution in order to improve the
profitability and productivity of the organisation (Zhang and et.al., 2020).
Individual and general performance: This can be analysed on the basis of turnover, quality
requirements, customer satisfaction, productivity and much more. The respective organisation
needs to examine and control over the individual performance, together with management. If any
changes happens they may take corrective actions to overcome them (Titus, 2021).
Speaker Notes:
In addition to Tesco, HR acts a change agent to bring change in the business while gaining
desired results. They need to effectively communicate the change objectives and also clear up the
doubts of employees so that ultimate goals can be attained (Chaubey and Sahoo, 2019).

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CONCLUSION
From the above report, it has been concluded that HRM is one of the pivotal area that
focuses on the utilization of human resources in the most efficient and effective way. HR intend
to make every employee capable enough by giving guidance, training and development
workshops, compensation and rewards for their motivation, responsible to create positive work
culture so that they could support in the overall achievement of goals and objectives of company.
Organisational design theory helps organisation to make a business structure for the employees
to get their jobs done in a productive manner. It helps in knowing how the roles and
responsibilities of the employees are assigned and who owns the authorities and power in the
company. Flow of communication is also determined with the help of organisational structure.
With effective approach or technique, HR is able to attract, retain and develop their workforce in
the business. These involves enhanced work culture, reward and recognition and many more.

Lastly, emerging trends and developments of HR has been found in this project such as hybrid
work model, diversity, inclusion and equity and many more.

REFERENCES
Books and Journals:
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Banfield, P., Kay, R. and Royles, D., 2018. Introduction to human resource management.
Oxford University Press.
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and green supply chain management practices on sustainable performance: An
empirical study. Journal of cleaner production, 204, pp.965-979.
El-Ghalayini, Y., 2017. Human resource management practices and organizational performance
in public sector organization. Journal of Business Studies Quarterly, 8(3), p.65.
Ling, F.Y.Y. and et.al., 2018. Human resource management practices to improve project
managers’ job satisfaction. Engineering, Construction and Architectural Management.
Analoui, F., 2018. Managerial perspectives, assumptions and development of the human
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management?. International Journal of Speech Technology, 24(4), pp.969-977.
Farooq, R. and et.al., 2022. Do green human resource management and self-efficacy facilitate
green creativity? A study of luxury hotels and resorts. Journal of Sustainable
Tourism, 30(4), pp.824-845.
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perspective. International Journal of Hospitality Management, 95, p.102749.
Abner, G.B., Kim, S.Y. and Perry, J.L., 2017. Building evidence for public human resource
management: Using middle range theory to link theory and data. Review of Public
Personnel Administration, 37(2), pp.139-159.