Tesco's Organizational Structure and HRM: A Case Study

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Organizational Management 1
Organizational Management

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Table of Contents
Introduction......................................................................................................................................3
Overview and functions of Tesco....................................................................................................4
How an effective structure can positively contribute to the progress and success of Tesco...........9
Conclusion.....................................................................................................................................12
References......................................................................................................................................13
Bibliography..................................................................................................................................15

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Introduction
The main purpose of this task is to reveal and explain about the HRM, customer and structure of
Tesco in an adequate manner. Tesco which is a well-known retail brand will be taken in the task.
The paper will highlight how Tesco maintains an effective and sustainable HRM to motivate the
workers and to formulate the policies and norms effectively. The paper will also outline how
effective and strong structure contributes to the development and success of Tesco. Brief
information about customer service also would be discussed in the paper.

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Overview and functions of Tesco
Tesco Plc is growing and dynamic groceries company with its headquartered is located in
London, England UK. It is the biggest and leading retailer around the globe measured by gross
revenues. It has stores in seven countries across Europe and Asia and it is a market dynamic
leader of retail and grocery products in the UK. Being a retailer, with around 450,000 workers,
Tesco serves ample of customers every week, in various stores and online. The company is
aiming at attain profitability, spending money and rendering retail products and services to key
target audience. In this concern, the aim of human resource management is to develop an
understanding how the management functions can influence performance of an organization. The
main functional areas of Tesco include the following:
The primary functions of finance department are:
 Tracking all the significant business transactions.
 Analyzing and evaluating the financial productivity and performance of Tesco.
 Controlling and managing the finances and cash flow.
Human resources:
 Recruiting, training, development and selection of new staff.
 Maintaining all important documents and records they have in their possession
confidential.
Marketing:
 Marketing research, survey, customer care and service,
 Advertising and sales promotion.
Production

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 Accountable for marketing service that are rendered by Tesco.
 Liable for providing the products and services to the customers.
Administration department:
 Generates an ordered way of engaging and working which ensures the business and trade
to function smoothly and effectively.
HRM plays a major role in Tesco to attract and retain new candidates globally. By using
innovative and sustainable HRM, the company is able to make unique policies and norms for the
workers at the workplace. It also helps in running business functions and activities in an effective
manner (Priya, 2017). Tesco advertises and promotes for the employment in several ways.
Firstly, the company seeks at its internal talent plan to fill a vacancy. Under this process, its
current workers who are seeking for a move either at the similar level or on promotion are listed.
If the company is failed to appoint candidate through this talent plan then Tesco advertises the
post effectively and internally over its intranet for three weeks. For external selection and
recruitment, the firm advertises vacancies through its website or display boards in stores. In this
way, the recruitment and selection is important and dynamic to appoint wide range of new
applicants (Edger, 2016).
Along with that, Tesco conducts dynamic training and development sessions, programs and
seminars to boost and improve skills, talent and effectiveness of the workers. Training makes the
workers more productive, flexible and dynamic. Tesco encourages workers by maximizing their
sense of ownership at the workplace (Bailey, et al, 2018). The company uses training and
development module to train the workers, this module is structured and flexible, which provides
to each and every individual employee requirements and needs. The company also uses on-the-
job training and job training method to promote the development of the workers. Additionally,

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360 degree appraisal method is optimized by Tesco to judge and evaluate the performance of the
workers. Tesco also optimizes a whistle blowing policy and helpline number to identify any
organizational and ethical issues in the workplace (Samantara and Sharma, 2015).
Guest’s model of HRM:
It is analyzed that the HRM department of Tesco has adhered the guest’s model (Cooke and
Bartram, 2015). As per this model, the overall approach of the HRM is categorized in five
different steps like human resource management practices, human resource outcomes,
performance outcomes, behavioral outcomes ad financial outcomes. According to this model,
HRM practices and activities are relying on five significant activities like training and
development, workers, performance appraisal, compensation and enhancement of the relation
with the workers (Brewster,et al, 2016). Along with that, HR outcomes are relying on three
different attributes like flexibility, engagement and quality. It is noted that the behavioral
outcomes or outputs of HR managers are depending on the several qualities such as
organizational citizenship, encouragement and collaboration (Brewster,et al, 2016) . These
qualities improve and enhance the productivity, quality, innovation power and employee
turnover. Guest model has understood that the concept of engagement and commitment so that
the relationship between high performance and engagement is quite complex to set.

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(Source: Cooke and Bartram, 2015)
It is noted from the above HRM model that Tesco maintains effective and unique HRM model to
increase and enhance the sale of the products and to run the business functions in a hassle free
manner.
Customer services:
Tesco provides excellent services to the customers across the world. Customer services may be
explained as a process of ensuring customer satisfaction and commitment with a product or
service. Aim of customer services is to improve the quality of services to satisfy the customers
from the organizational offerings. Generally, customer service takes place while performing and
conducting a transaction for the customer like making a sale or returning a product. An effective
and unique customer service helps in increasing revenue and outcomes internationally. Tesco
remains a specific number one in the United Kingdom, with approx. twice the market share of
Asda and Sainsbury. The company provides customer service through its retail shops, telephonic
and through internet. The operation of customer service executive or officer is rendering facts,
information, and advice on all the retail products and services, further serving the clients,

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managing complaints and resolving customer queries. The organization easily understands and
evaluates what product its clients will value. All new products are tested or examined by Tesco.
The company could spotlight its champion goods better in stores in the global market. Tesco is
well known for its new and innovative technology that is used by the company to provide
services to the customers around the globe (Wilkinson, et al, 2014).
Tesco constantly ask its key target audience and workers what they can do to make shopping and
engaging with the company a little bit better. Tesco clients have said them they want specific
aisles to get what they want at an appropriate price, no queues and excellent workers. The
company optimizes its very little supports shopping trip for clients each and every day to ensure
and enable they are continuously working hard to make company a better and dynamic place to
shop at abroad as well as home. Tesco staff treats the customers with respect and integrity. The
company is helping to attain what is significant to its employees would help Tesco to render
every little helps shopping trip for its clients. The main motive of the organization is to attract
wide range of customers and stay connected with existing customers internationally (Pousttchi
and Hufenbach, 2014).
Tesco uses concierge model to resolve and handle the issues and challenges of customers
globally. Under this model, the concierge team gets customer issues from social networks , but
sends the concerns to other teams for determination. This framework works well in retail sector
that have a high rate of transition or need a high level of abilities to render resolution to the
problem or concern. Communication is significant for the concierge model to work, warns
hopper. The social media team needs to evaluate and measure what facts and information are
required before the concern is handed off to the next team for determination. The handling and
managing team then has to let the social and digital media team understand and analyze the issue

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and challenges have been controlled and eliminated so they may close the hoop by confirming
and ensuring it with the clients back in the effective and dynamic channel (Dong, et al, 2015).
On the other hand, Tesco optimizes hybrid model to attract ample of key target audience. The
company with the help of hybrid model is able to handle and overcome the customer issues and
challenges without sending the concerns outside of the team and able to hand off some other
barriers to other teams. This model is also well known in larger and dynamic companies where
social media customer service online in phases. In this way, this model is helpful to resolve and
manage the barriers, obstacles and issues of the customers widely. By improving and enlarging
customer service, Tesco is able to increase and boost revenue and profitability internationally
(Saarijärvi, et al, 2013).
How an effective structure can positively contribute to the progress and success of Tesco
Tesco is an international supermarket chain which provides its services globally. This company
has several efficient ways to complete its work and also have advance technology. It gives more
responsibility to the staff. Tesco has able to achieve its goals and purposes because its structure
varies on its aims and policy. It regulates the roles and responsibilities and allows their staff to
understand their role and donate their best to the company to accomplish its goals. It follows
various types of organizational structure and cultures to achieve the targeted goals. These are like
the culture of organization is geographically based, friendly culture, flexible environment and
decentralized decision making. Tesco also follows decentralized structure in which decision
making and operation responsibilities are assigned by the top management as, flexible
environment supports enhancing flexibility to change. And, decentralized structure helps in
decentralizing the activities. By following this structure, subordinates also give its best effort in
achieving the organizational goals (Lain, et al, 2014).

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Tesco also follows hierarchical structure. In this type of structure, the organization is divided into
several parts so that work can be done efficiently and effortlessly. In hierarchical structure, there
are vertical stages that show the roles and responsibilities of each and every employee. So, it is
said that the roles of managers and workers of all departments are explained effectively by using
hierarchical structure. They also know that to whom they have to give report and where to
submit this report. It also makes specialization adequately and effectively. This structure splits
tasks from human resource to marketing and purchasing. It divides these areas into several
departments within the organization. Specialization makes Tesco to focus on particular skill and
resources to attain efficiency so, it leads to the growth in the organization. Hierarchy also helps
in creating effective communication among the employees, divisions and department of the
business. In this way, effective and dynamic structure contributes to the success and growth of
the company.
Here, information is excellently circulated through manager of the company instead of
contacting with each individual employee. As of each department there is different departmental
administrator so each and every information regarding the company is given to the supervisor.
Then, it is the responsibility of the manager to act on the situation accordingly. So, information
can be distributed efficiently and when manager distribute it and also it leads to the efficient
communication (Manolopoulos, et al, 2011). This hierarchy system also offers clear career path
for each worker. Managers and directors’ practice hierarchy structure as a motivation for
workers. It makes potential of the managers to operate at a high level of productivity and
performance so, it contributes effectively to Tesco. A good hierarchy generates way of
accountability for plans and activities. Like, accounts receivables give report the accounting
manager who further reports to the operations manager (Baker, 2012). If there is supply of any

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wrong information, then again, the same path is to be followed by the company. In Tesco there is
fix path which needs to be obeyed by all the departments so this is the reason behind its success.
Here, employee development occurs at all the stages of the organization. In Tesco, managers
work with the company directors which results in the good performance of the managers. It helps
the employees to estimate that from where his boss is receiving career development plan. So, it is
essential in Tesco that competence of hierarchy must be there at all levels (Seddon, et al, 2017).
The hierarchical and decentralized structure helps in dealing and managing day to day business
activities and operations. Top authority focuses more on the decision making. Decentralizing the
activities reduces burden of employees because boss permits others to complete their tasks. In
Tesco, sometimes owner is far away from the company for a long period due to any kind of
reason then decentralized structure maintains the self-sufficiency of the organization in a better
way. So, it prepares their employees to work in case of emergencies (Anders, et al, 2012). As
compared to centralizedorganization, decentralized organization has quick decision making. No
scalar is required at this type of structure, a manager can make a decision without following the
chain, and it permits the company to respond quickly where fast actions is required to gain the
customer. By decentralization structure, Tesco expands and explores business globally as, it
results in inaugural of several business units. And also, they open their units according to the
needs and wants of the people and the area. They decide to sell products conferring the local
market. So, decentralized structure helps in the success of Tesco (Seddon, et al, 2017).

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Conclusion
It is concluded from the above research that Tesco is an effective and leading retail and grocery
company which is providing different retail products to the customers across the globe. It has
been revealed from the above study that Tesco maintains a unique and sustainable HRM to
improve and enlarge the performance and productivity of the workers. Along with that, Tesco
uses concierge and hybrid model to resolve conflicts of the workers and to reveal an excellent
customer service. It is evaluated that by optimizing decentralized organizational structure, the
firm is able to make dynamic and amicable culture and environment at the workplace. It also
helps the workers in performing tasks and duties effectively and appropriately within the
organization.