Human Resource Management Practices at Tesco: A Critical Analysis

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UNIT 3 HUMAN RESOURCE MANAGEMENT (ICN)
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Executive summary
This study has shown various methods that have been taken by human resource management to
work efficiently in the organisation. HRM in organisation to increase their productivity level and
profit of the company organizes recruitment process and identify good employees to increase the
productivity process. The study has also shown HRM focuses on health and safety of employees.
They ensures that excess workload is not given to employees of the organisation hence this may
hamper the health of employees that may reduce the production process. Thus HRM also focuses
on providing knowledge to employees so that they have the idea to work and implement more
efficiency to boost up the companies production. The study also shows that human resource
management provides a better lighting, safety rules etc so that there is flexibility in the
workplace. Thus these methods are being analyzed by HRM for better decision-making in the
organisation.
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Table of Contents
Introduction......................................................................................................................................4
Company Overview.........................................................................................................................4
LO1 Scope and purpose of HR Management for resourcing organisation with skills and talent for
achieving business objectives..........................................................................................................4
P1: Purpose and function of HR Management to plan for workforce and resourcing
organisation..................................................................................................................................4
M1: HR functions to achieve business objectives.......................................................................5
P2: Strength and weakness of approaches of selection and recruitment......................................6
M2: Evaluation of approaches of strength and weakness of selection and recruitment..............6
D1: Critical evaluation of approaches of strength and weakness of selection and recruitment...7
LO2: Effectiveness of key elements of HR Management in organisation......................................7
P3: Benefits of HRM practices in organisation for both employee and employer......................7
P4: Effectiveness of HRM practices in raising organisational productivity and profit...............8
M3: Methods used for HR practices............................................................................................9
D2: Evaluation of HRM practices and application....................................................................10
LO3: Analysis of external and internal factors affecting HR Management in decision making
and employment legislation...........................................................................................................11
P5: Analysis of importance of employees’ relations and its influence on HRM decision-
making........................................................................................................................................11
P6: Employment legislation and its impact on decision- making by HRM...............................11
M4: Key aspects in employment legislations and employees’ relations management..............12
LO4: Application of HR Management practice in organisation....................................................12
P7: Application of HR practice organisation.............................................................................12
M5: Rationale for application of the specific HRM..................................................................15
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D3: Critical evaluation of employee relations and application of the practices of HR to
influence and inform decision-making in organisation..............................................................15
Conclusion.....................................................................................................................................16
Reference list.................................................................................................................................17
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Introduction
Business of an organisation depends on managing workforce and resource in effective way. HR
management is a strategic approach to manage resources and workforce so that they can be used
to achieve goal of an organisation. In this study, Tesco has been considered in order to
understand the practices of HR management in organisation. Scope and purpose of HR
management is going to be discussed here along with management of skills and talents in
achieving business goals. HR manager plays an effective role in managing business along with
approaches of selection and recruitment. Effective management of HR is beneficial for both
employer as well as employees. Employees’ relation and legislation are also going to be
discussed here along with their impact on decision making process. External as well as internal
factors affecting decision making process is also going to be discussed here.
Company Overview
Tesco is multinational supermarket having headquartered in UK. It provides various products
such as groceries, clothes and services related to finance and mobiles. The company provides its
services in various countries such as India, Thailand, Malaysia, Ireland, UK and Hungary. There
are around 450,000 across 11 markets (tesco-careers.com, 2019). The company focus to provide
effective and best service to customers and it wants to become the best service and products
provider in the world. Customers can buy products and services of the organisation through its
stores as well as through online platform. It has been found that around 42 million transactions is
done by the organisation per week.
LO1 Scope and purpose of HR Management for resourcing organisation with skills and
talent for achieving business objectives
P1: Purpose and function of HR Management to plan for workforce and resourcing
organisation
HR management of an organisation is responsible to manage resources as well as employees so
that work can be done in effective way to achieve objective of the business (Stone et al. 2015).
HR management of an organisation has to play various functions such as
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Recruitment and Selection
The objective behind recruitment is to attract talent and increase the productivity of business. As
stated by Conway et al. (2016), HR management of an organisation is responsible to hire
effective employees in organisation in order to achieve the objective of business. In case of
Tesco, HR manager use to select employees based on attitude and behaviour rather than focusing
on academic skills as employees having effective attitude and behaviour can handle customers
effectively.
Managing relationship among employees
Managing relationship among employees is important in order to bring unity in organisation so
that they can together work for common goal (Snell et al. 2015). HR management has to manage
conflicts among employees so that employees can work in a team to achieve organisational
objective. In case of Tesco, HR manager uses to make group so that employees can know each
other and their relationship can be managed.
Providing training to develop their skills
After recruiting employees in organisation, it is the responsibility of HR manager to hire
effective trainers in order to provide training to employees for developing their skills related to
work (Deery and Jago, 2015). HR manager of Tesco provide training to employees and takes
care of budget so that financial challenges cannot be faced by organisation by providing training
to employees.
Proving effective working condition
Employees need positive working environment so that they can focus on innovation for the
benefits of organisation (Stone and Deadrick, 2015). It is the responsibility of HR manager to
treat the employees effectively and consider them as an important part of organisation. HR
manager of Tesco provide freedom to employees to focus on innovation. That is why; the
organisation is running successfully in different countries.
M1: HR functions to achieve business objectives
In order to achieve objective of business, it is important for HR manager to recruit effective and
qualified employees in order to increase productivity of organisation and do innovation (Kerzner
and Kerzner, 2017). HR manager of Tesco uses technologies for recruitment process in order to
reduce cost of recruitment process. After selecting the employees, HR manager of Tesco provide
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them effective training so that they can understand their work in effective way. HR manager also
provide weekly training to employees in order to develop their knowledge and skills to increase
productivity of business. Reward is also provides to best performers of the company by HR
manager in order to motivate employees and provide them job satisfaction. HR manager of
Tesco needs to consider the employees as an important part of business so that they can work by
taking responsibility. Positive working environment of the company helps employees to focus on
innovation and creativity. In this way, effective management of human resource in organisation
is the reason of its success.
P2: Strength and weakness of approaches of selection and recruitment
Strengths of approaches of selection and recruitment
HR manager of Tesco uses technology and advertising for attracting talented employees in order
to increase productivity and innovation in business. In accordance to Marler and Parry (2016),
HR manager can attract talent from different location with the help of technology. It can also
help the organisation to save time as HR manager has to invest a long time in recruiting
employees by tradition process. Financial resources of the organisation can be protected as less
cost is invested to recruit employees through technology.
Weakness of approaches of selection and recruitment
HR manager can face difficulties in hiring effective employees through online process. Some
people can face challenges in participating in online process. HR manager also face difficulties
in finding appropriate employees as many people participate in online process (Mone and
London, 2018). Some online platform uses to take huge amount in order to advertise for
recruitment process of organisation.
M2: Evaluation of approaches of strength and weakness of selection and recruitment
HR manager of Tesco uses technology in order to attract talent from different part of the world
and find effective employees for organisation. In accordance to Shen and Benson (2016), there
are some advantages as well as disadvantages in hiring employees through online process. It can
save the time of organisation and HR manager by reducing time to dealing with various
candidates. A large number of responses are achieved by online process so it can be difficult for
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HR manager to see the resume of all candidates. The organisation has to invest large amount in
advertising on online platform.
D1: Critical evaluation of approaches of strength and weakness of selection and
recruitment
In Tesco, HR management uses technology in order to save time during recruitment process. On
the other hand, the cost to advertise on online platform is higher so the organisation can face
budget related issue. High response can be received for a job so the manager can face challenge
in finding appropriate employee for the organisation. On the other hand, high response can be
beneficial for organisation to attract talent from all over the world. In accordance to Aguenza and
Som (2018), selecting employees with the help of technology can be difficult to find effective
employees with practical skills such as problem solving skills, positive attitude, communication
and technological knowledge.
LO2: Effectiveness of key elements of HR Management in organisation
P3: Benefits of HRM practices in organisation for both employee and employer
Human Resource Management within an organisation has many responsibilities and they protect
the interest of both employer and employees in the company. Various benefits of HRM in Tesco
are shown below:
● Healthy Relationship with employees
Human resource management maintains a good relationship with their employees and workers in
Tesco. As opined by Aguenza et al. (2018), they provide support to employees and help them to
focus in their work. Those employees who experience harassment or feels that their rights have
been violated may contact the human resource management for further assistance. HRM in Tesco
helps employees in their organisation to assist them with legal matters and tries to solve the
problem.
● Providing Information
Another benefit that human resource management gives to both their employer and employees is
providing important information about employee benefits. As said by Marler and Parry
(2016:2233), they also provide information regarding the work process and gives knowledge
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about employees personal assistance. HRM gives information by providing training to their
employees and helps them to work efficiently in the organisation. Thus HRM provides
information like leave of absence, benefit regarding employee compensation.
● Flexible workplace
Human resource management benefits by providing a flexible workplace to their employees.
HRM gives a better time management for their employees to work and hence helps them to work
better. As mentioned by Cepiku et al. (2016), they create a good mutual bonding among
employees and managers in Tesco. Another important benefit is HRM of Tesco provides good
lighting condition, safety precautions etc in their organisation that helps employees to have a
good flexible working place in Tesco.
Figure 1: Benefits of HRM practices in organisation for both employee and employer
(Source created: By Learner)
P4: Effectiveness of HRM practices in raising organisational productivity and profit
Human resource management follows different practices in raising profit and organisational
productivity such as:
● Development by Training
HRM in Tesco train their employees and gives necessary information and idea about how use the
new technology in the work process. They provide innovative ideas and knowledge to increase
their productivity level in the company so that there is also an increase of profitability ratio in the
market. Hence this training helps employees to increase their efficiency and focus in their work
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HealthyRelationshipwithemployeesProvidingInformationFlexibleworkplace

(Voegtlin and Greenwood, 2016). Thus through using new technology in organisation helps to
increase the profitability ratio in market and also the rate of productivity of the company.
● Health and Safety
Human resource management follows another practice in their organisation that is ensuring
health and safety in workplace. HRM follows various policies like not providing so much of
workload to employees so that with extreme pressure of work health of employees do not
hamper. As said by Collings et al. (2018), this helps employees to work efficiently and increase
the productivity of organisation. Thus employees with small work pressure focuses in their work
and complete it within time period.
M3: Methods used for HR practices
There are various methods used by HR in the organisation that is shown below:
1. Sharing Knowledge
The most important method that HR follows in Tesco is sharing of knowledge with employees
and managers in the workplace. This method helps employees to access information with others
that employees are sharing. They create a teamwork that helps them to share knowledge in doing
the work and gain innovative ideas through this process. Sharing of knowledge develops
employees to work efficiently.
2. Recruitment through identification of good employees
Another most important practice that HRM follows in the organisation is recruiting qualified
employees for their company. The human resource management choose employees who have a
good qualification and is hard working. Exams are conducted by HRM in Tesco and then they
try to identify workers who have better working skills. Thus this helps Tesco to have skilled
employees in their company that increase the productivity level process and profits of the
organisation.
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Figure 2: Methods used for HR practices
(Source created: By Learner)
D2: Evaluation of HRM practices and application
Human resource management in Tesco helps to increase productivity and profitability ratio in
market. HRM practices a healthy relationship with their employees so that if there is any
problem regarding work issue they can help in solving the issues. Through this practise there is a
good working environment in the organisation. The HRM in organisation helps employees to
assist in legal matters and provides them with equal rights. However, the management also
provides knowledge and steps to work efficiently in the organisation. This helps workers to gain
profit for the company. As said by Snell et al. (2015), the human resource management in Tesco
provides a flexible working condition by good lighting, mutual bonding among employees that
helps them focus in their work and complete it in specific time period. Another application that
HRM follows to increase the productivity and profit of organisation is development of
employees by training them. They provide information regarding how to use new technology in
the organisation and work efficiently to increase the profit ratio in market. Another application
used by HRM is ensuring is health and safety rules. They focus on whether too much workload is
not given to employees so that it hampers their health and decreases the production of company.
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SharingKnowledgeRecruitmentthroughidentificationofgoodemployees

LO3: Analysis of external and internal factors affecting HR Management in decision
making and employment legislation
P5: Analysis of importance of employees’ relations and its influence on HRM decision-
making
In an organisation employee relation is very much important for human resource management in
decision making. As said by Voegtlin and Greenwood (2016), due to a good relationship among
managers and employees there is a healthy workplace. Maintaining a healthy relation with
employees helps organisation to attain company goals. Through a good relation one feels secure
and confident and focuses on the work and implements their best in it. A healthy employee
relation discourages in conflicts and lowers the issues in the organisation. Thus this helps HRM
to make better-decision that increases the profitability ratio of the company. Thus a healthy
relation fulfils the communication gap between managers and employees and hence this helps
HRM to lead to increase in sales level of the organisation. Management of Tesco considers
employees as an important part of the business that is why they work passionately to achieve
goal of organisation. Management of the company takes feedback and suggestion of employees
before making any decision related to business. This relationship helps the management to
achieve the objective of business by increasing productivity of business.
P6: Employment legislation and its impact on decision- making by HRM
Payment of Wages Act 1960
As per this act, organisations of UK need to pay the appropriate wages to employee on time in
order to avoid legal dispute (legislation.gov.uk, 2019). As stated by Alagaraja and Shuck (2015),
management of an organisation wants to invest more in business in order to increase profit but it
is important for management to pay wages to employees on time. In this way, legislation impact
business decision. In Tesco, HR manager has to make business decision on the basis of this act
so that wages can be paid to employees on time.
Employment Act 2002
According to this act, organisations are not allowed to take employment of any person without a
specific reason and pre information (legislation.gov.uk, 2019). This legislation affects the
decision of management as they cannot replace unproductive employees by productive ones. Due
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