Comprehensive Report: HRM Practices and Effectiveness at Tesco

This report provides a comprehensive analysis of Human Resource Management (HRM) practices within Tesco, a leading multinational retailer. The report begins by outlining the purpose and functions of HRM within Tesco, focusing on workforce planning, recruitment, and selection processes. It then delves into the strengths and weaknesses of various recruitment approaches, including internal and external sources, evaluating their impact on the company's objectives. The benefits of HRM practices for both employers and employees are examined, highlighting how these practices contribute to organizational culture, employee motivation, and overall productivity. The report also assesses the effectiveness of HRM practices, emphasizing their role in improving productivity, employee engagement, and conflict resolution. Furthermore, it explores the importance of employee relations and the key elements of employment legislation relevant to Tesco's operations. Finally, the report concludes with an analysis of how HRM practices are applied in a work-related context, providing a holistic understanding of their significance in achieving Tesco's business goals and fostering a positive work environment. This report is a valuable resource for understanding the complexities of HRM within a large retail organization like Tesco.

Unit 3- Human Resource
Management

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
P1 Purpose and functions of HRM in Tesco...............................................................................3
P2 Strengths and weaknesses of various approaches to selection process..................................5
P3 Benefits of HRM practices within Tesco for both the employer and employee....................7
P4 Effectiveness of HRM practices.............................................................................................9
P5 Importance of employee relations........................................................................................10
P6 Key elements of employment legislation.............................................................................11
P7 Application of HRM practices in a work-related context....................................................12
CONCLUSION..............................................................................................................................16
REFERENCES..............................................................................................................................17

INTRODUCTION
Human resource management refers to the process of recruitment, selection, induction of
employees, providing orientation, enforcing training and development, appraising of employee
performance, distribution of salaries and remuneration, providing employee benefits and
motivating employees (Armstrong and Taylor, 2020). Tesco is a multinational corporation based
in UK and headquartered in Hertfordshire, England which deals in general merchandise,
groceries and is a retailer of FMCG goods. According to brand awareness and revenue, Tesco is
a leading retailer and supermarket chain and has multiple stores across Europe and Asia. This
report will focus upon purpose of HRM in context to resourcing Tesco with talent and skills
required to meet business goals. The significance of the primary elements of Human Resource
Management in Tesco will be evaluated. The internal and external factors affecting HRM
decision-making and employment legislations would be analysed along with HRM practices in a
work-related context.
MAIN BODY
P1 Purpose and functions of HRM in Tesco
The aim of HRM activities management of current and future employees appropriately
and involves functions of recruitment, selection and workforce planning. The purpose of Tesco is
to ensuring that all positions and work takes place collectively for driving its business targets and
objectives. For considering the right number of staff at relevant jobs, Tesco has structured an
effective recruitment and selection process for attracting applicants for positions and roles of
operations and management.
Workforce Planning: This refers to of evaluation of company’s potential needs for
employees and workers in terms of skills, locations and numbers. It lets organisation to plan the
meeting of manpower needs through recruitment and selection. It is vital as Tesco is a growing
corporation and has to conduct recruitment on a periodical basis for all the branches of its
business (Martin, 2015). The job vacancies usually become available when company opens new
stores or expands internationally, when there is employee turnover or company changes its
technology and processes. As per De Bruecker and et.al, (2015) the company uses a workforce
planning table to estimate likely demands for new employees considering both managerial and
operational positions. For example, Tesco calculates a demand for new managers in accordance
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to business growth and the planning takes place every year from February (De Bruecker and
et.al., 2015). The quarterly reviews happen in May, August and November for Tesco to adjust
workforce levels and conduct necessary recruitment. The job descriptions and person
specifications are set by HRM department which is done to see how job-holders fit into the
company. It also provides benchmarks for every job for skills and responsibilities (Miller, 2016).
Attracting and recruiting: As stated by Das and Ahmed, (2014) the purpose of
recruitment and attracting employees is to ensure that best talent is hired by Tesco for all its
managerial, non-managerial and operational job positions. Recruitment consists of attracting the
right level of candidates for applying in various vacancies. Tesco uses different ways to advertise
for its jobs depending upon the availability (Das and Ahmed, 2014). It helps in determining the
current and future needs, increase the job pool at minimum cots, to assist in the quality of
selection rate. It is necessary for long term objectives of the company to keep updating the
workforce and gather better qualified staff with changing times to improve operational
performances. Tesco follows both internal and external recruitment strategies through intranet,
social media postings, official website, direct recruitment etc. to enable best recruitment
techniques for attracting talent in the company (Rosnizam and et.al., 2020).
Selection: Selection process consists of choosing the most competent people from total
number of applicants for the vacancies of the company in adherence to employee legislations and
regulations. In Tesco, screening and checking the candidates is a significant procedure in the
selection process ensuring that chosen candidates fit with certain requirements of the job role.
Initial stages pertain to screening of each applicant’s CV by Tesco selectors (Rosnizam and
et.al., 2020). The candidates who clear screening round attend assessment centres which takes is
conducted in stores and managed by team leaders and top store managers who offer consistency
in the entire process. Numerous team-working activities, problem-solving and analytical
exercises are conduced to check how candidates would encounter the situations in the actual
workplace. After approval from the internal assessment, interviews are conducted and line
managers are often a part of the interview panel to ensuring that the selected candidate fits the
job role (Martin, 2015).
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P2 Strengths and weaknesses of various approaches to selection process
The two primary approaches for recruitment and selection are internal and external
sources of recruitment. Tesco employs both internal and external recruitment strategies using
various methods to ensure they effectively meet their workforce requirements, human resource
goals and business objectives by optimally utilising their resources (Recruitment and selection at
Tesco, 2020).
Internal Recruitment: As per DeVaro, (2020) this takes place within the organisation
and is used when the company tries to find best employees to fill spots by taking in their own
employees first. Tesco gives priority to its current employees using major ways to recruit
internally. These are: Promotions: The upgradation of the cadre of existing employees after
evaluating their performances and giving them more responsibilities, authority, remuneration etc.
Transfers: Interchanging ranks and responsibilities via shifting employees from one branch,
location or department to the other (Shailashree and Shenoy, 2016). Internal Advertisements: Job
postings done within the organisation and is an invitation to all employees to apply for the vacant
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Recruitment &
Selection Approaches
Internal Sources External sources
Agencies of employment
AdvertisementsTransfers
Promotions
Internal posting for jobs Recruitments in campuses
Employment exchange
Direct recruitment
Word of Mouth advertising
Referrals from existing staff

job positions. Employee referrals: Conducted by hiring new resources through references of
existing employees (DeVaro, 2020).
Strengths:
 It reduces time taken to hire and allows many steps in the full cycle of recruitment to be
skipped. The company will also have access to the pay history, background checks and
past performances of selected candidates (Muscalu, 2015).
 Shortens onboarding times unlike outside hires and Tesco doesn’t waste any time for
explanation of payrolls and setting expectations of employee behaviour. The internal hire
is already well-versed with the workplace culture, which eases coordination with teams
and understand the bigger picture and company values and objectives.
 As per Shailashree and Shenoy, (2016), the use of internal recruitment helps Tesco in
saving money due to reduction in time to hire and shortening of onboarding times.
Resources used in finding and training staff or hiring managers is saved. The cost of
external recruiter, attending job fairs, running background checks on candidates is saved.
 Employee engagement is strengthened, employees develop loyalty towards the company,
the employee retention becomes higher and it induces positivity in the workplace and
has long-term benefits (Kanagavalli, Seethalakshmi and Sowdamini, 2019).
Weaknesses:
 It tends to create conflicts amongst employees as it is difficult to embrace new authority
who has previously been a peer and tends to increase organisational politics. The
employees who are not promoted or transferred for no reason may become demotivated
and unhappy (Ahammad, Glaister and Gomes, 2020).
 Internal recruitment leaves gap in the existing workforce and sometimes the process gets
back to square one. That is why internal job postings cannot help in long term or for large
number of candidates and has to accompanied by external recruitment.
 It was observed in the study by Kanagavalli, Seethalakshmi and Sowdamini, (2019) that
internal recruitment limits the pool of talent as new potential hires could possess new
talents and capabilities which could benefit the company from a fresh perspective. The
modern supermarket industry is dynamic and quickly needs new talent to deal with
changing roles.
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External Recruitment: External sources of hiring are used when there outside talent pool is
asked to fill in the open job postings (DeVaro and Morita, 2013). The various approaches for
external recruitment are advertising, external recruiters, Employment agencies, employment
exchanges, event recruitment, direct recruitment/walk-in interviews, job fairs, internships,
online recruitment, special career events, open houses, word-of-mouth marketing. Tesco
uses job postings, direct recruitment, online recruitment, employment agencies etc
(Recruitment and selection at Tesco, 2020).
Strengths:
 Higher rate of conversions as external recruitment attracts numerous candidates who have
distinct and variety of skills and competencies. It increases chances for company to land
highest number of suitable candidates (Ladkin and Buhalis, 2016).
 Better skilled and competent candidates can be achieved through effective methods of
selection and modern technology such as applicant tracking system and improves
engagement and process of onboarding.
 According to Muscalu, (2015) external sources of recruitment best way to hire a high
number of new job positions and it attracts new skills and inputs which can bring in
innovative ideas and fresh perspective.
Weaknesses:
 There are higher risks when conducting external recruitment as a lot of unworthy
candidates can enter the recruitment cycle.
 Ladkin and Buhalis, (2016) state that greater costs are involved in recruitment via
employment agencies, posting jobs online, conducting campus placements etc. All stages
in the recruitment process are tedious, time consuming and complicated.
 Possibility of maladjustment is high and if new recruits are unable to adjust to the
workplace culture or job role it can either lead to high training costs or employee
turnover (Ahammad, Glaister and Gomes, 2020).
P3 Benefits of HRM practices within Tesco for both the employer and employee
For employers:
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HRM practices such as recruitment, selection, manging employees helps employers in
setting up an organisational culture which is aimed at bringing together values, beliefs, mission
and vision of the company. The human resources influence the organisation culture of Tesco
(Yang and et.al., 2015). The dynamic business environment needs to sustain by effectively
retaining talent which can only be done using talent management and workforce planning
practices by Human resource management. HRM practices bridge gaps between departments and
managers and also plan for changes in workflow, reassuring employees, keeping them motivated
and retain talent along with administering theory attendance, payroll, benefits etc (Mendy, 2018).
This saves time and resources of the company. HRM practices like training and development that
Tesco conducts helps in imparting knowledge and skills to employees for specific tasks which
helps the company in achieving higher employee productivity. HRM also manages conflicts,
manage health, welfare and safety of all workforce and ensure everything happens in adherence
to the employee laws and regulation saving Tesco from any legal troubles (Oude Mulders and
Henkens, 2019).
For employees:
Urbancová and Hudáková, (2017) ellucidated that HRM practices tend to create positive
workplace environment and involves initiates like diversity, conflict resolution and problem-
solving. The Motivational activities such as employee engagement, performance appraisals,
employee reward and recognitions conducted in the workplace of Tesco inspires the employees
and they wok more productively. Good working employees in Tesco may get special
recognitions or employee benefits which improves their loyalty towards the company and retains
talented staff (Likhitkar and Verma, 2017). HRM practices of grievance redressal helps
employees to mediate disagreements and solving work related issues. Communication between
top management and employees happens through HRM and employees feel an integral part of
Tesco. The training and development programs conducted by HRM helps employees to hone
their skills and get to know the practicality of work. It helps in their development at work and
improves their performance and they tend to achieved greater job satisfaction. All such activities
tend to improve employee engagement, employee productivity and motivation (Urbancová and
Hudáková, 2017).
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P4 Effectiveness of human resource management HRM practices
HRM Practices are very favourable for Tesco to improve its productivity and performance
in market place (Beynon-Davies, 2018). Currently HR management of company conducts
different practices in the organisation, like; selecting & recruiting, employee relations, training &
development, etc. These all are basically major practices of HRM, and by conducting these
practices this department has enabled to existing retail organisation for earning huge profit
margins in market place.
The HR manager of company conducts practice of talent management as well. This talent
management practice of HR department provides an effective workforce of many talented and
skilled employees. In this situation, after having lots of talented and skilled employees, the
company simply increases its levels of productivity and performance in market place. In this
same scenario, if company have effective performance and productivity in market place, then it
will be raised its huge profit margin in market.
here are training and development practice of HRM helps to business for enhancing
knowledge, skill, abilities and competences of employees. In this situation, when most
employees of company have well-developed skills, abilities and competences, then they will give
their huge efforts in Tesco’s workplace. At the end, this factor will be able to Tesco for raising
its productivity as well as profit margins in market place.
HRM’s another major practice is to adopt various methods, like; external recruitment and
internal recruitment. The external recruitment is useful for HR department of Tesco, because it
enables for recruiting people from the external business environment of company
(O’Dochartaigh, 2019). By using this method in daily operations, Tesco can gain new and fresh
talent in its workplace.
On the other side, this method of recruitment helps to organisation for generating huge
employment opportunities as well. Using internal recruitment techniques is also one of major
practices of HR department in company in which this technique has used by department for
hiring employees from the internal business environment of organisation (Lata, 2018). By
adopting and implementing this method, HRM saves its lots of precious time and resources,
because existing employees no requires basic training and development sessions for working on
another post in the same organisation.
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In this dynamic and modern world, Tesco is gaining huge profit margins with the support
of its different HRM practices. Currently this retail brand has an effective workforce of many
talented and skilled employees, just because of its HR department. It means, without contribution
of various human resource management practices, the business can’t survive in present highly
competitive market place. HR department has enabled to organisation for raising huge profit and
productivity in market place.
Evaluation
Advantages and disadvantages of different HRM practices
Workforce planning: After conducting this practice, the company can gain effective workforce,
so this is the advantage of this HR practice. On the other side, workforce planning practice is
very time consuming, so this is disadvantage of this practice.
Selection: Selection HRM practice contributes in selecting such people in market place which
will be effective employees to company, so this is advantage of selection practice (JIN, 2017).
On the other hand, when HR department conducts selection practice, then it requires very large
consumption of fund and resources, so this a disadvantage of selection practice.
Recommendations
Generally, these both practices of HRM contributes in increasing organisational profit
and productivity, but currently selection is the most appropriate practice of HRM which has
enabled to company for gaining an effective workforce. High profit and productivity is very
necessary to Tesco for gaining excellent competitive advantage in market place.
P5 Importance of effective employee relations
Effective employee relations always positively affect to an organisation in market place,
and this is the main reason that currently most organisations are trying to make their employee
relations very effective (Grewal, 2018). Some major importance of effective employee relations,
and its impact on decision-making of HRM has been discussed below;
Effective relationship between employer and employees mostly motivates people or
employees to work hard in workplace. Top-level management at Tesco is aware about the impact
of employee relations, and that’s why it has given responsibility of developing effective
employee relations to its HR department. That’s why this employee relationship impact to
decision-making of HRM. So that, employee relations impact to HR manager of company for
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taking decisions towards arranging different events, like; parties, plays, conferences, meetings
etc. where department invites both, employer and employees.
In this situation, when employer and employees of company meets with each other in such
events, then employee relations will be automatically improved. HR of Tesco has claimed that,
communication skills also play an effective role in making effective relationship between
employer and employees.
Analysis
It can be analysed that HR of company takes decisions towards developing
communication skills of all people also in organisation (Vetráková and Smerek, 2019). Due to
effective employee relations, Tesco achieves very productive work from its various employees.
HRM of company considers different factors in its workplace for maintaining great relationship
between employer and employers, in which these factors have been discussed below;
The role of trade unions: HR manager properly communicates with different trade unions or
employee unions for completing different negotiations. Basically, a trade union work for
providing basic rights to employee of different companies, in which if any company not provides
basic rights to employees and workers, then this union conducts protests against that particular
company. That’s why maintain proper negotiations with different trade unions is favourable step
of HRM in order to maintain effective employee relations.
Collective agreements: HRM follows the concept of collective agreements also for developing
very effective employee relations. Collective agreements have mostly signed between Tesco and
employees for removing different future conflicts (Flachsbarth, Grassnick and Brümmer, 2020).
These agreements give some freedom to both employer and employees in workplace, and then
employee relations will be automatically improved.
P6 Employment legislation’s Prime elements
Human resource management at Tesco considers different elements of employment
legislations as well. Basically, company proper follow employment law in its daily operations for
providing basic rights and freedom to employees and workers in workplace. The law has
different elements which always affects decision-making of HRM. Some major element of
employment law has been discussed below;
Health and Safety at Work act (1974): According to this element of law, which has affected to
HRM of company to take decisions towards providing a safe and secure workplace (King and
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Fitzgerald, 2016). Employee safety and security is one of prime duties of Tesco that it fulfils in
very proper manner.
Equality act (2010): The HRM of company takes decisions towards managing equality and
diversity also for proving equal growth opportunities to all employees in workplace. This is
really useful element of employment law to different employees of Tesco. This element impact
to HRM for taking decision towards behave equally with all employees in workplace.
Evaluation
On the basis of mentioned research, it can be evaluated that these elements of
employment highly affect to HRM of company, in which existing HR manager of company
properly follows and considers these all elements in its daily operations. These elements help to
business for legally formed in market place.
P7 Application of HRM practices in a work-related context
In order of application of HRM practices in work-related context, there are job
advertisement, job description, offer letter, CV etc. has been attached below.
JOB ADVERTISEMENT
JOB ADVERTISEMENT
Job role: IT (Information Technology) manager
Salary and location: CTC of £6700 PM (per month). Job location is Tesco’s headquarter,
England, UK.
The introduction: Tesco is required a talented and skilled IT manager for managing its different
functions relating to information technology.
The objectives: Main objectives of company behind hiring an IT manager are to grow its
business by using information technology, to improve quality of its product, to improve
interaction values with customers etc.
Responsibilities: The main responsibility of IT manager in Tesco is to enable organisation for
achieving huge success in market by using adopting and implementing different new, latest and
modern technologies.
- Tesco
JOB ANALYSIS
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