An Evaluation of Tesco's Human Resource Management Strategy

This report provides an analysis of Tesco's human resource strategies, examining the company's approach to employee training, communication, rewards, and engagement. It evaluates the effectiveness of these strategies in maintaining employee motivation and retention, contributing to Tesco's market position. The report also identifies areas for improvement, suggesting measures such as enhanced reward systems, self-assessment programs, and skill development initiatives to further boost employee engagement and overall performance. The analysis highlights Tesco's commitment to its employees and its continuous efforts to optimize its human resource management practices for sustained growth and success. Desklib provides solved assignments for students.

Running head: ANALYSIS OF HUMAN RESOURCE STRATEGY OF TESCO
Analysis of human resource strategy of Tesco
Name of the student
Name of the University
Author note

1ANALYSIS OF HUMAN RESOURCE STRATEGY OF TESCO
Executive summary
The aim of the report is to understand the importance of human resource management. The
report gives a general overview of the human resource management and why it is important in
making a business successful. In order to carry out the study on the above mentioned topic,
Tesco has been chosen as the company, whose human resource strategy will be evaluated.
Therefore, the report begins by giving a overview of the background of the company and then
discusses the different strategies undertaken by the company. Additionally, the report examines
the effectiveness of the human resource strategies and suggests possible measures which can
help the company to engage with its employees more effectively.

2ANALYSIS OF HUMAN RESOURCE STRATEGY OF TESCO
Table of Contents
Introduction......................................................................................................................................2
Overview of the company................................................................................................................2
Human Resource strategy of Tesco.................................................................................................3
Employee training........................................................................................................................3
Employee communication...........................................................................................................4
Employee rewards and recognition.............................................................................................4
Evaluation of the company’s human resource strategy...................................................................4
Employee engagement strategy of Tesco........................................................................................5
Future scope of employee engagement in Tesco.............................................................................6
More rewards...............................................................................................................................6
Self-assessment progarm.............................................................................................................6
Skill development program..........................................................................................................6
Conclusion.......................................................................................................................................7

3ANALYSIS OF HUMAN RESOURCE STRATEGY OF TESCO
Introduction
Human resource management is considered as one of the primary aspects of strategic
business planning by the most business organization in order to make a successful business.
Human resource practices in a business provide various services to the employees (Alfes et al.,
2013). Additionally, these practices ensure the quality of employees in view of the growth of the
company. Therefore, human resource practices include monitoring of talent, management of
talent performance and so on. Hence, analysis of human resource management is of great
importance to examine whether these practices are fulfilling their purposes. The report aims to
understand human resource practices in business. In order to carry out the study, the report has
chosen Tesco as the organization of which human resource strategy will be evaluated. The report
will figure out the issues related to human resource management that the company is currently
facing. In addition to that, the report provides possible measures which will be able to help the
company to address the issues.
Overview of the company
Tesco began its journey in 1919 as a market stall. However, since 1929 its first retail
store was opened. The company has now transformed in to the leading brand in the grocery
market by offering quality products at low price ("About us", 2018). Tesco has become one of
the trusted brands not only in its home country but also across the world by maintaining a
constant engagement with its customers. The company is presently spread across twelve
countries with 530000 in its 2291 retail stores (Fernie & Moore, 2013). It delivers quality
products to over 10 million customers. Thus, it secured the highest position in the grocery retail

4ANALYSIS OF HUMAN RESOURCE STRATEGY OF TESCO
market. Tesco is no more limited to grocery items. The products offered by Tesco range from
garments to fuel energy and electronic goods. In addition to that, it offers financial services
which made it one of the leading groups in the entire business industry. The company in a recent
press conference stated that the 65% (Fernie & Sparks, 2014) of the sales profit from its business
in the home country. The company in 199 shopping services to its customers, which was home
based. It has adopted different business strategies that made its profit margin over 2 million per
month. In order to maintain its market position and further growth, it introduced certain offerings
to its customers. The company gives special benefits to its customers as part of its business
strategy (Krafft & Mantrala, 2014). It serves home delivery facility to the customers who
purchase products by availing its home-based shopping service. Another benefit given the
company is the facility of club cards. The brand loyal customers get the offer of club cards which
undoubtedly strengthened its customer relationship. However, rising of other brands in the same
industry created competition in the market. Therefore, the company is focusing on the further
improvement and extension of the product range.
Human Resource strategy of Tesco
The company has applied different human resource strategy over its large number of
stores and other workplaces in order to make its work more efficiently. The strategies adopted by
Tesco are discussed below:
Employee training
The company per year inducts a large number of employees. Tesco hires talents from the
top-notch universities around the globe (Brannen, Moore & Mughan, 2013). It provides training

5ANALYSIS OF HUMAN RESOURCE STRATEGY OF TESCO
to its employees according to their academic background. The primary purpose of this training is
to enable the employees to understand the company structure and its vision.
Employee communication
The continuous communication with the employees is another human resource strategy
that deserves mention (Metzger, 2014). The company communicates with all of its employees to
understand their views, experience and the issues that they face so that it can evaluate and solve
those issues.
Employee rewards and recognition
Various rewards are given to the employees by the company so that they can feel valued
at work. As employee motivation is the key factor towards employee retention, the company
recognizes the efforts given its employee by giving different rewards to them (Scuffham, 2014).
It has been observed these rewards have played a major role in the growth of the company.
Evaluation of the company’s human resource strategy
The current market position of the company suggests that it has successfully managed its
employees. It has introduced different activities in terms of human resource strategies, which
keep its employee engagement with their workplaces (Tesco plc, 2014). The training and
development approach is one the remarkable strategy of the human resource department of the
company. The employees as per their qualification get trained after they hired in order to work
with the company. As per the employee feedback, training process adopted by the company has
been proved as the useful assistance for the employees. Through these training, the employees
understand the mission, vision and the structure of the company. Another aspect of its human
resource management is the communication among the employees, which has been able to

6ANALYSIS OF HUMAN RESOURCE STRATEGY OF TESCO
satisfy the employees as the company understand their requirements, problems and solve them.
As part of their communication strategy, the company arranges different activities through which
the employees not only remained connected with its governing body, but they remain connected
with each other. Another purpose that the communication strategies serve is that it helps the
employee relieving the stress of work life.
Employee engagement strategy of Tesco
The term ‘employee engagement’ refers to the approach through which the employees
feel motivated to work in their workplace. Therefore, employee engagement has become the one
of the major need of every organization. In order to break down the meaning of the approach, it
can be said that this approach serves for the employees as well as for the organization (Truss et
al., 2013). The more the company keeps engaged its employees by different applying different
strategies, the more its growth increases. Primarily it serves for the employees so that they can
themselves valued at the workplace and remain motivated while understanding the ultimate goal
of the company.
Over the years Tesco has been doing continuous research in the area of employee
engagement. Thus, the company has adopted various strategies in order to make its employee
engagement with the company. As part of the strategies, a large number of initiatives have been
taken in terms of special events, communication through social networking sites and so on. The
company also provides platforms through which the employees can connect with the higher
authorities (Truss et al., 2013). Tesco aims to support its employees by all means and therefore, it
has initiated different measures including showcasing of talents, celebrations of special events,
online media platforms for internal communication and so on.

7ANALYSIS OF HUMAN RESOURCE STRATEGY OF TESCO
Future scope of employee engagement in Tesco
Few areas have been found where the company can work in order to maintain complete
employee engagement in their business. Therefore, certain measures have been mentioned
below:
More rewards
At the time of annual increase of profit, the company can provide additional rewards to
its employee in terms of salary (Tyrell, 2014). As money matters more than anything in
motivating employees, such initiative impacts largely on the performance of employees. In
addition to that, Tesco can focus on those who expect benefits apart from salary hike or other
rewards in terms of money and take initiative accordingly so that can feel engaged.
Self-assessment program
The company can introduce employee assessment training programs which will help the
employees in assessing themselves in view of performance improvement (Tyrell, 2014). With the
help of self-assessment, the employees can learn about their own drawbacks as well strengths.
Such initiatives have an impact o the employees that are being valued by the company. On the
other hand, self-assessment reduces the risk of feeling inferiority complex, which is one of the
major negative aspects of assessment by organization.
Skill development program
Different skill development programs can be introduced by the company so that the
employees can learn additional skills to improve their work performances (Tyrell, 2014). After
the employees go through the self-assessment procedure, they come to know their own
weakness. Most of the employees wish to learn the required skills in order to remain in the

8ANALYSIS OF HUMAN RESOURCE STRATEGY OF TESCO
workplace. Skill development training programs can help the employees in learning the adequate
skills and applying those skills in live situations at the same time. These training programs also
reduce the fear of getting fired by the authority as most of the employees believe that they can be
fired if they do not exceed the expectations of their authority. Thus, it can be said this measure
will help in the betterment of employee engagement in Tesco.
Conclusion
In conclusion, it can be said that human resource strategy is one of the essential strategies
to make a business successful. The company has been able to secure its position in the retail
market, still it can do more in the area of human resource management so that can boost its
further growth. Tesco being one of the leading brands in the entire business sector has been able
to secure that its employees perform best. At the same time, Tesco has increased rate of
employee retention in its business by applying different motivational strategies. Meanwhile, it
has taken various initiatives in terms of employee engagement. The report evaluates its human
resource strategies and then suggests possible measures in order to improve its employee
engagement policies.

9ANALYSIS OF HUMAN RESOURCE STRATEGY OF TESCO
References
About us. (2018). Tesco plc. Retrieved 13 April 2018, from https://www.tescoplc.com/about-us/
Alfes, K., Shantz, A. D., Truss, C., & Soane, E. C. (2013). The link between perceived human
resource management practices, engagement and employee behaviour: a moderated
mediation model. The international journal of human resource management, 24(2), 330-
351.
Brand Finance (2014). Global 500 2014: The world’s most valuable brands. Available
at: http://brandirectory.com/league_tables/table/global-500-2014
Brannen, M.Y., Moore, F. & Mughan, T. (2013). Strategic ethnography and reinvigorating Tesco
plc: Leveraging inside/out bicultural bridging in multicultural teams. Ethnographic
Praxis in Industry Conference Proceedings, London, September 16-18, pp. 282-299.
Fernie, J. & Sparks, S. (2014). Logistics and retail management (4th edn). London: Kogan Page.
Fernie, S. & Moore, C. (2013). Principles of retailing. Abingdon: Routledge.
Krafft, M. & Mantrala, M.K. (eds) (2014). Retailing in the 21st century (2nd edn). Springer:
Berlin, pp. 257-270.
Metzger, K. (2014). Business analysis of UK supermarket industry. Master’s dissertation,
Loughborough University.

10ANALYSIS OF HUMAN RESOURCE STRATEGY OF TESCO
Scuffham, M. (2014). Tesco takes on UK banks with current account launch. Reuters [online].
Available at:http://uk.reuters.com/article/2014/06/09/uk-tesco-bank-account-idUKKBN0-
EK24H20140609.
Tesco plc (2014). Annual report 2014. Cheshunt: Tesco plc.
Truss, C., Shantz, A., Soane, E., Alfes, K., & Delbridge, R. (2013). Employee engagement,
organisational performance and individual well-being: exploring the evidence,
developing the theory.
Tyrell, J. (2014). Introduction to socio-cultural influences. In Mutum, D.S., Roy, S.K. and
Kipnis, E. (eds) (2014). Marketing cases from emerging markets. Heidelberg: Springer,
pp. 9-11.
Wood, S. & McCarthy, D. (2014). The UK food retail ‘race for space’ and market saturation: A
contemporary review. The International Review of Retail, Distribution and Consumer
Research, 24(2), 121-144.