Tesco's International HRM: Challenges, Analysis, and Solutions

This project delves into the international Human Resource Management (HRM) issues faced by Tesco, a prominent UK-based multinational retailer. The project begins with an introduction to international HRM, highlighting its significance in managing a global workforce and achieving organizational objectives. It then provides an overview of Tesco's history and operations, followed by an identification of key international HRM challenges, including communication barriers, talent management, and employee motivation, especially during the COVID-19 pandemic. The analysis focuses on factors affecting employee motivation, such as communication gaps, inadequate rewards, low self-confidence, and fear of failure. The project then applies motivational theories, including incentive, McClelland's needs, and competence theories, to propose solutions for these HRM challenges. The project concludes with recommendations and a summary of the findings, emphasizing the importance of addressing these issues to enhance employee performance and achieve Tesco's strategic goals in a competitive global market.

International HRM

Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
Review on the relevant literature.................................................................................................1
Overview and History of the multinational company..................................................................1
Outlining the international HRM issues......................................................................................2
Analysis of the International HRM issue or problem..................................................................4
RECOMMENDATION...................................................................................................................8
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
International Human resource management refers to the collection of different activities
that helps in targeting the human resource management at the global level (Aswathappa and
Dash, 2020). It will also help them to achieve their organisational objectives as well as increase
their competitive advantages at international and national level. In the following Project, selected
multinational company is Tesco which is a retailing company based in United Kingdom. It was
founded in 1919 by Jack Cohen and its headquarters is in Welwyn Garden City, Hertfordshire,
England, UK. The task of the project covers the evaluation of an international HRM issues
within an international company.
MAIN BODY
Review on the relevant literature
According to Paulet, E., and Rowley C., (2017), international HRM plays a significant
role in managing the employees that belongs from different region and countries. It refers to the
process that help multinational companies in order to employ, train, develop and compensate
employees at the global level in order to achieve their objectives in efficient manner. It helps
company to develop managerial skills, technical abilities as well as organisational knowledge of
their employees and HR managers that helps in increasing their competitive growth (Banfield,
Kay and Royles, 2018). It creates an effective way that helps in handling the global business
operation of the company in better manner. This is crucial in securing and managing the
performance, career path and compensation of their employees properly. It organises language
training programme and cross-cultural counselling in order to help employees for their global
performance. In context of Tesco, it is a multinational company which means it have many
subsidiaries in countries and its HRM hire employees from different region and countries.
International HRM helps its HR managers in order to manage their employees of different region
and make them perform more effectively in the organisation (Harney and Alkhalaf, 2021). This
will assist in achieving the goals and objectives effective as well as enhance their competitive
growth in global business environment.
Overview and History of the multinational company
Tesco is an international retailer based in UK and operates their business through online
as well as multiple formats of stores. The stores operated by the company are available in many
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formats which was classified according to their size as well as extent of product sold in the
market. The company has more than 360000 employees in all over the world which helps in
providing quality of product and service in the market (Information about Tesco, 2022). The
company started its journey from a small stall by selling surplus groceries in 1919. In 1924, it
became its own Brand and open its first store in 1929 in Burnt Oak, Edgware, North London. In
1990, it expanded its business in global level and operate its business 11 countries from all over
the world. In today's world, it become one of the leading companies of the world and covers
28.4% market share in UK. It becomes third retailing company in the world according to its
generated gross revenues.
Outlining the international HRM issues
In the opinion of Bradley J., (2018), in today's world, many organisational operating their
business in global business environment as well as other local companies pushing themselves in
order to expand their business in another country in order to access various benefits as well as
acquire highly talented people in the organisation (Brewster and Hegewisch, 2017). As the
companies is increasing their operations hence their workforce also increases which also create
challenges for its HR managers to manage their global workforce in proper manner. This makes
Tesco to plan an effective strategy that helps them to manage their talent, cultural diversity and
mobility in the organisation. It became essential for them to not only hire, retain and sustain
highly talented people but also make their organisation flexible in order to set their company
where they can easily access high talented people in best price (Kramar, and Mariappanadar,
2019). This will help them to achieve their goals and objectives as well as increase their
competitive advantages. Challenges like effective communication, managing talent diversity,
motivating global employees, abiding by local laws, conflicts of interest and talent gaps creates
problems for the Human resource management of the company in order to manage their
employees in global level (Brewster, Mayrhofer and Farndale, 2018). The Hr managers of Tesco
also faces many problems in managing their global employees in Covid- 19 pandemic because
employees have to perform their work from home for stopping the spread of corona virus. In
respect of this company, many issues are faced by its Human resource management in order to
manage their employees is motivating their global level employees. Problems in motivating
global employees can also affects the overall performance of the company and create various
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losses. The factors of global employees that creates problems for the HR management of the
company in order to motivate their global employees are described below:
Lack of proper communication- Due to impact of COVID 19 pandemic employees faces
many difficulties because they are performing work from home and they cannot make proper
communication with there HR manager which also make demotivated while working in the
organisation. As their HR manager is not interact with them directly and cannot understand their
needs properly which also makes difficulty to them in order in order to satisfy them as well as
make them motivated in order to give their best in their performance in better manner (Bose and
Dey, 2019). This makes their employees unproductive in order to work in the organisation which
results decrease their revenue also.
Improper rewards and compensation- Effective rewards and compensation plays an
important role in motivating the global employees of the company in order to give their best in
their performance (De Cieri, 2017). If the Tesco is failed in providing the proper rewards and
compensation according to the performance of their employees which also makes problem for
the company in order to motivate them to give their full efforts in their performance. In case of
this company, the right amount on compensation and rewards are not provided to their global
employees on time create difficulties for the company in order to give their best in their
performance. Due to covid 19, company faces problems due to which they cannot provide their
rewards and compensation to their employees. This also makes them demotivated while
performing in the organisation.
Low self-confidence- If this shown in global employees of the company which also
create problems for HR management of the company to motivate them in order to perform their
task more effectively (Richards, 2020). Confidence makes employees to give their best in the
organisation in order to complete their task on time. If the employees of Tesco have lack of
confidence, then they feel unworthy and are unable in order to make decision and does not
achieve organisational goals on time. In regards of this company, this will also make difficulties
for its HR management to motivate their global level employees and makes them confident in
order to perform their task in proper manner.
Low expectation for success- If the employees feels that the Tesco has low potential in
order to make them successful to their future career. The success is most important factor for
motivating employees in order to give their best in their performance and help them to achieve
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their goals and objectives (El-Ghalayini, 2017). In aspect of this company, this makes problems
for their HR management in order to motivate their employees in global level, when they feel or
expect that there is low opportunity in making their future success. This also affects the overall
performance of the company and may declines their market share in global business
environment.
Fear of failure- If the global employees of Tesco fear about failure in their performance,
which declines their confidence and makes them unappropriated in order to give their best in
their performance. This will also make them less motivated in the organisation and create
problem in achieving the goals on time. In case of Tesco, fear of failure in their global
employees makes them less motivated and affects their global performance (Karasek, 2020).
This makes problems for their HR management to motivate them properly in order to help
company to achieve their goals in proper manner.
Analysis of the International HRM issue or problem
The issues faced by the company to motivate their global employees and make them
perform effectively in the organisation (Harzing and van Ruysseveldt, 2017). The company need
to analyse its international HRM issue in order to find effective solution that helps in increasing
the growth of global business environment in proper manner. In context of Tesco, some
motivation theories that helps in finding the suitable solution for solving international HRM
issues are described below:
Motivational theories-
According to Indeed Editorial Team, (2021), motivational theories is a set of different
principles that helps in guiding the urges, wants, desires, needs, goals and striving of the
employees to the HR management of the company in order to find effective way that helps in
motivating national and international employees. This will also help in improving the overall
performance of the company and helps in achieving the goals more efficiently. In respect of
Tesco, the theories that helps in motivating their global employees in order to solve their
international HRM issues are described below:
Incentive theory- The theory describes that the employees in organisation feel motivated
through recognition, reinforcement, rewards and incentives. This implies that the HR managers
should analyse the performance of their global and national employees in order to provide
effective rewards and benefits so, they feel more motivated in the organisation in order to
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perform their task as well as give their best in their performance (Jaga and Guetterman, 2021). In
regards of Tesco, this will make to provide bonus and rewards to their global and national
employees in order to make them highly motivate in order to give their best for achieving their
organisational goals. The company can make promotional opportunities for their employees in
order to them highly motivated in the organisation and help company to increase their
competitive advantages in global business environment. This theory helps HR manager of Tesco
to solve the problem of improper rewards and compensation by providing effective rewards to
their employees in order to make them motivated while working in the organisation.
McClelland's need theory- The motivational theory describes three kinds of needs, by
the fulfilment of these needs makes them motivated. The three needs are need for affiliation,
need for achievement and need of power. The theory makes HR manager of the company to
identify their national and international employees needs in order to make them feel motivated.
The affiliation need of the employees describes that the employees should be accepted by the
group in which they are performing (Mahadevan, 2020). The achievement need of employees
describes that their competitive advantages increase along with their standard of work ethics is
also maintain. The power need describes that they want to lead the groups, distribute the task as
well as coordinate events also. By the fulfilment of all these needs makes employees highly
motivated and perform their task in proper manner. In aspect of Tesco, this makes their HR
managers to focus on the fulfilment these needs of their global employees in order to make them
to perform their task effectively. This will also help them to achieve their organisational goals
and increase their competitive advantages in global business environment. This theory helps
them to eliminate the problem of fear of failure in between their employees so, they feel
motivated in order to perform effectively in the organisation (Dickmann, 2021).
Competence theory- This theory describes that the company need to engage their
employees in a specific activity for displaying their intelligence, abilities as well as skills. If the
employees in the organisation displays their intelligence successfully in the organisation makes
them motivated and feel competent in a specific area. This can help company to improve the
efficiency and productivity of their global employees by making them feel competent in order to
perform their task in confident manner. In esteem of Tesco, this helps in solving the international
HR management issue of the company in order to make their global employees highly motivated
for giving their best efforts in their performance (Lee, and Cogin, 2020). This helps in solving
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motivation problem of lack of self confidence of employees which makes Hr manager of Tesco
to provide proper training to their employees that increase their confidence and become more
competitive in order to perform effectively in global environment.
Expectancy theory- This theory describes that the employees need to perform those
behaviour which helps them to get desirable outcomes from it in order to make their performance
more efficient and effective (Ozbilgin, 2020). If the company focus on using this theory in their
working environment helps them to improve their employees’ efforts, productivity and
efficiency. In case of Tesco, this will help in motivating their global employees in order to make
them perform effectively in the organisation. This theory helps Tesco to solve their motivation
problem in order to motivate their global employees in better manner. The Hr manager can solve
low expectation of success problems so, their global employees perform their task in better
manner.
Factors that help in motivating global employees-
In the view of Andy Ng, (2021), motivation of global and national employees is
important is every organisation as it helps in engaging the employees as well as increasing the
higher productivity. This makes important for the HR manager of every organisation to analyse
the factors that helps in motivating their employees in order to give their best in their
performance for achieving organisational goals and objectives. In context of Tesco, the factors
that helps them to motivate their global employees in order to solve their international HRM
issue are described below:
Foster open communication- Creating an open communication environment for the
employees is essential to motivate them. This will help Tesco to ask their queries from their
other subordinates or leader in order to perform their task better. This will help in motivating
their global and national employees (Pucik, Evans and Björkman, 2017). The open
communication working environment makes employees feels comfortable and encouraged in
order to give their best in the organisation. In respect of company, this will help them to make
their global employees motivated in order to give their best in their performance and helps
company in achieving their goals.
Create an agile working environment- This is most useful factors for motivating and
engaging employees in order to give their best in their performance. An agile working
environment make employees effective in order to response rapidly changing environment by
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giving their full efforts in order to solve. This will help in motivating the employees to become
innovative and creative as well as take risk for performing in changing environment. In regards
of Tesco, it helps them to solve their International HRM issue and motivate their global
employees to perform in creative and innovative manner.
By providing proper rewards and incentives- This is important duty of the HR
managers of Tesco to provide proper and performance-based rewards and incentives to their
employees in order to make them feel highly motivated in the organisation. Every national and
international employees of Tesco wants that their best performance is appraised and wants
effective rewards and incentives in the organisation so, they feel highly motivated which also
increases their productivity and profitability in order to give their best in the organisation
(Widarni and Bawono, 2020). In aspect of this company, their HR manager need to provide
effective rewards and incentives to their global employees in order to make them highly
motivated as well as engaged in the organisation.
Encourage workplace sociability- This implies that the Tesco need to make positive
relationship in between their employees in order to make them feel friendly as well as
communicate with each other effectively. This will also help them to solve issues that may occur
while performing their task. The company also need to manage the conflicts in between the
employees so, they perform their task in better manner. In case of the company, it helps them to
motivate their global employees by encouraging sociability in their working environment and
makes them to motivated in order to give their best in their performance.
Maintaining safety and health- This is also an important factor for the HR managers in
order to motivate employees (Stone, Cox and Gavin, 2020). Every employee wants to perform
safest and healthier working environment because their health is important in giving their best in
their performance. This makes important for every organisation to consider health and safety of
their employees first rather than achieving their goals. If the employees of Tesco get healthier
and safest working environment, which not make them motivate but also helps in improving
their productivity and efficiency in the organisation. In account of the company, this is also
helpful in solving international HRM issue and make their employees highly motivated in the
organisation.
Proper training and development- This plays an essential role in motivating the
employees of the company. If the employees of Tesco get proper training and effective
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development opportunities time to time make them motivated in order to give their best in their
performance and help company to achieve their goals in proper manner (Word, and Sowa, 2017).
In accordance with the company, if their HR managers provides effective training and
development to their global employees helps them to motivate them and also makes them
engaged for long term in the organisation.
RECOMMENDATION
According to the above discussion, it has been analysed that the HR managers of the
Tesco, need to analyse the factors or aspect that creates problems to them in order to manage
their global employees. Motivation is important for making employees to give their performance
best in order to helps in achieving the organisational goals and increase their competitive growth
in global market. This is also essential for them to analyse effective strategies that help in
motivating their global level employees as well as makes them engaged with the organisation for
long term. They can also use motivational theories in order to identify best methods that helps in
motivating the employees in proper manner.
CONCLUSION
From the above discussed project task, it is concluded that international HR management
is important for every multinational company to manage their global employees and their
performance effectively in order to achieve their organisational goals and objectives. There are
many issues in the global business environment related to international HRM that creates
problems in managing the global employees of the company. The factors that create problems for
motivating global level employees are different language and culture, improper rewards and
compensation, low self-confidence, low expectation for success and fear of failure. Incentive
theory, McClelland's need theory, Competence theory and Expectancy theory are some
motivational theories that helps in motivating the employees in proper manner. Foster open
communication, create an agile working environment, by providing proper rewards and
incentives, encourage workplace sociability, maintaining safety and health and Proper training
and development are some factors that helps in motivating the global level of employees.
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REFERENCES
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