Tesco Plc's HRM Practices: Restructuring Roles and Responsibilities

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HUMAN RESOURCE MANAGEMENT
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Table of Contents
Introduction...................................................................................................................... 3
LO1.................................................................................................................................. 4
LO2.................................................................................................................................. 8
LO3................................................................................................................................ 12
LO4................................................................................................................................ 15
CV-1............................................................................................................................... 15
Conclusion..................................................................................................................... 19
Reference list................................................................................................................. 20
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Introduction
Human resource management practices are implemented by the organizations for
developing rules and regulations so that every employee and employer gets satisfied
with the workplace. Moreover, HRM is the organizational functions, which cover the
issues relations with policies, hiring, motivation, compensations, performance
management, training, communication and other development of staffs. The main of the
study is to analyse the efficiency of the HRM practices for restructuring the roles and
responsibilities of various departments of Tesco Plc. This study will evaluate the
internal and external factors that would affect the decision making process of HRM.
Based on the study,
Overview of the organization
Tesco Plc is well-known retail organizations of UK having headquarters in Welwyn
Garden City and Hertfordshire. The company is found to be founded in year 1919 and
total employees working in the organization is 460000. As per the report of Financial
Times 2018, it has been evaluated that the net operating income of the company is
about £1,644 million (tesco.com, 2019). The organization is one of the profitable
supermarkets along with 15.6% market share in grocery market. Currently, the
organization is operating 1878 stores in UK, 179 stores in Asia and 261 supermarkets in
Europe. This indicates that HRM practices present an important factor for the
management the entire organization in a lucrative manner.
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LO1
Explanation of scope and purpose of HRM in context of resourcing in
organization
P1: Objective and function of HRM applicable to resourcing and workforce
planning
The main functions and purpose of HRM in Tesco Plc in context of workplace planning
and resourcing are mentioned below:
Planning: As mentioned by Meijerink et al. (2016), Human resource planning is the
procedure where management ensures the effective number of people by placing them
at the right time. Planning is the main function of HRM that helps the management to
analyses, collect and identify the proper resource in the workplace. In Tesco, it has
been found that HRM functions for analysing the skills and knowledge of the employees
in order to recruit the suitable candidate for the job role.
Organizing: This is the most important function of human resource management. In
this case, HR managers allocate the tasks to every employee based on the skills and
activities in order to enhance the performance level. In Tesco, the line managers of HR
department are responsible for providing tasks to the employees on a daily basis. Apart
from this, the organization has been found to measure the level of performance of the
employees by organizing assessment and other program in workplace.
Directing: This function of HRM includes activating the staffs at various levels in order
to make them contribute towards the organizational goal. The managers of Tesco are
focused on developing constant motivation and thrill among employees so that they can
serve their customers in a proper manner.
Controlling: This is the ultimate function of HRM where employees are controlled so
that they can perform their task properly. The actual performance of the employees is
checked by the management team and based on that controlling measures are taken
accordingly. In Tesco Plc, the employees are active in coordinating with their managers
that helps the workforce to meet the organizational objectives within the stipulated time.
All the discussed functions and purposes of HRM indicate that they are related to the
planning of workforce and resourcing of the organization. The main activities of HRM in
Tesco are to develop the communication process, recruitment process and hiring
process effectively so that they can choose the suitable candidate.
It has been found that Company is not able to manage the workforce due to lack of
HRM practices, hence, it can be said that the scope of HRM practices is much high and
company need to develop the mentioned activities of HRM in order to manage the
workplace in proper manner
P2: Describe the strengths and weaknesses of different approaches of selection
and recruitment
Strengths and weaknesses of recruitment process
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Different methods used for recruitments are internal and external recruitment process.
In case of internal recruitment, it has been found that HR managers of Tesco conduct
internal recruitment using promotions and transfers. Hassan (2016) commented that
company mainly allow the permanent employees to take part in internal recruitment
process. The primary strength of the process is that it is cost effective and allows the
employees to show case their talent levels in the company. Moreover, it helps in
retaining the top talent and reduces the employee turnover that is a positive point for the
organization. However, the major weakness of internal process of recruitment is that
the internal recruitment might limit the total number of the potential candidates.
In case of external recruitment, it has been found that new employees are recruited that
requires effective knowledge and talent management strategies in order to hire them for
enhancing productivity of the organization. In Tesco, HR managers need to train the
new employees that are quite expensive in nature. Hence, this represents a major
weakness for this recruitment process. On the other hand, in this process, automatic
recruitment using AI software can be beneficial that helps in effective screening of the
candidates (Presbitero et al. 2016). The strength of the external process of recruitment
is potential and hardworking candidate are recruited that is profitable for the enterprise.
Strengths and weaknesses of selection process
Various approaches are used for selection process such as online, face-to-face
interview process and others. In Tesco, mostly, face-to-face selection process is used
analysing the effectiveness and skills of the candidates. Hence, the main strength lies
here is HR managers are able to assess the reliability of the candidate that enables to
conduct pre-employment testing. However, the major weakness of the selection
process is it become hard to assess the honesty of the candidate in face-to-face
interview process. Moreover, some of the selection process might be ambiguous that
can affect the results badly. However, Khoreva et al. (2017) evident that considering
pre-employment tests along with the group interviews and face-to-face interview might
be beneficial for the company selection process.
Hence, Tesco can apply the mentioned recruitment and selection process considering
the both the strengths and weaknesses for developing their HRM practices in a
prosperous manner.
HRM functions to meet business objectives
Hard and soft model of HRM
Hard HRM model: The employees are found to gain resources for the business by
developing a strong link with the corporate body. Using this Hard HRM model, the
practices of HRM would increase significantly and the needs of the workforce in Tesco
Plc can be managed properly.
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Figure 1: Hard model of HRM
(Source: Rahman et al. 2017)
Soft HRM: In context of the soft HRM model, the staffs are treated as the primary
resources in organization. In this competitive edge, Cook et al. (2016) mentioned that
treating the individual as per the requirements and planning needs of organization can
help in gaining extra benefits in productivity. Hence, Tesco using soft HRM can treated
as valuable asset that would further help in the implementation of adaptability,
commitment and high quality workforce.
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Figure 2: Soft model of HRM
(Source: Cook et al., 2016)
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LO2
Evaluation of importance of main elements of HRM in organization
P3: Advantage of various HRM practices for employee and employer in
organization
Advantages of HRM practices for employees of Tesco are mentioned below:
Productivity increment: With the use of effective HRM practice such as performance
management, training, effective payroll policies and others, productivity increases
incrementally. This is because, the employees become more active that aid the
organization to gain positive outcomes in business (Khoreva et al. 2017). For example,
in Tesco, it has been found that performance management is done by providing
rewards, incentives, bonus and motivation that helps in developing a productive
workforce.
Attendance improvement: HRM practices aids in enhancing satisfaction level the
employees and encourage them in contributing to intellectual assets of the company. In
Tesco, improving the employee’s attendance is required for meeting the requirements of
customers. Moreover, HR planning process has to be take place in a constructive
manner in order to store the data in the organization.
Improvement of employee retention: Successful organization such as Tesco is able
to create a positive environment for their employees due to effective HRM practices. In
broader sense, Chiang et al. (2017) signified that HRM practices helps in reinforcing
and rewarding the behaviours of employees. For example, if HR managers of Tesco
provide benefits such as providing comfortable working environment and culture and
performance appraisal, the employees will build a positive thinking for the organization.
Hence, this can enhance the employee retention rate effectively.
Improvement of employee morale: It has been found that morality of the employees is
improved with the help of HRM practices such as sales coaching and encouragement of
team innovation. In Tesco, the HR managers have developed management team those
are responsible for providing sales coaching to the employees. This enables the
employees to improve their morality levels. Moreover, management team of Tesco
share the mission and vision of the retail business to the employees in the induction
session that is conducted during training classes.
Benefits of HRM practices for employer of Tesco are provided below:
Improve confidence: Employer of organization requires developing confidence in order
to meet the requirements of the employees. Hence, if the employer groups such as HR
managers and line managers spend time in developing HRM practices, they will be able
to know the interest levels of the employees. Hence, this would help the employers of
Tesco in gaining confidence level.
Develop communication skills: The employers of organization will be able to develop
their communication skills by interacting with both existing and new employees. Zibarras
and Coan (2015) stated that developing both verbal and non-verbal communication skill
is the main factor for the employers as it helps in reading the mind-set of the
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employees. For example, using formal and informal communication techniques,
organizational profit and productivity of Tesco is increasing at a huge rate, as employers
are able to make a mutual bond with their communication skills.
Improve performance management method: Monitoring of the performance of
employees is the basic role that aids the employers to check the performance regularly.
Hence, these HRM practices are developed among the managers that aid them in using
self-monitoring tools to track the daily performance of the employees. As opined by
Blom et al. (2018), performance management is one of the roles of HRM practices that
are adopted by employers to provide rewards and design the job effectively. Hence,
from using HRM practices such as recruitment and selection of the employees, their
ability of performance management also is enhanced. This helps them to improve the
job design process for gaining a productive result.
Help in budget control: Employers such as financial managers, accounting managers
and others are required to keep track of the business results. Tesco is one of the
famous groceries and supermarket brand that requires keeping budgetary control in a
descriptive manner. Employers need to understand the investment and funding process
in orders to balance the business in a proper manner.
P4: Effectiveness of different HRM practices in context of profitability and
productivity
Organization profit and productivity are two fundamental elements that force the
enterprise to develop different HRM practices. Hence, in this case, the company may
use Maslow and Herzberg’s theory to become the prime motivator in order to gain the
interests of employees. Using this approach, Tesco can be able to attain effective profits
in their retail projects. Moreover, the organization may use models such as Handy
flexibility and Atkinson Flexibility model for enhancing the effectiveness of HRM
practices.
As per Handy management theory, managers require to acquire multi-tasking skills for
conducting the business successfully. The managers of Tesco can adopt this theory for
developing effective communication that is important for creating flexible workforce in
the organization.
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Figure 3: Handy management theory
(Source: Word and Sowa, 2017)
On the other hand, using Atkinson Flexibility model, the management techniques of
the employees can be enhanced that would help in organizing the workplace in a better
manner (Johnstone, 2018). For example, Tesco using this model can be able to allocate
the human resources as per the market instability and the flexibility of the workforce.
This model needs to be adopted by the organization for improving the performance
management methods for monitoring the employee performance. Hence, this would
help in creating a flexible workplace in the organization.
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Figure 4: Atkinson Flexibility model
(Source: Johnstone, 2018)
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LO3
Analysis of the internal coupled with external factors effecting HRM and its
decision-making along with employment legislation
Decisions associated with the human resources management coupled with its decision
making include the multiple internal and external factors. This section includes the
analysis of the importance of the employee relationship related to decision making by
the human resource manager. This additionally, includes the identification regarding the
key elements associated with legislation in the employment domain.
P5: Analysis of employee relations and its importance relative to influencing an
HRM decision and its making
Relationship among the staff along with the management as well as the staff enables
dynamic influences in HRM decision-making (Noe et al., 2017). Hence, there would be
mainly three segments, in which importance of employee relationship could be analysed
in the following order.
First in the domain of the positive and open end relationship with the management,
relationship among the staff as well as with the management enables positive
influencing of the HRM decision making (Mallén et al., 2016). For example, for an
organization like Tesco, decision against employees would be mostly in the domain of
regularization of staff and identification of underperforming staff. A positive relationship
with the management would enable such individuals to avail second chances in the
event of organizational restructuring. Additionally, positive relationship with the
management would enable individual employees to bargain the remunerations and
stock options that an organization would be offering.
Second in the domain of decisions regarding organizational changes or strategic
changes, positive and dynamic relations with the employees would project a
transformational leadership as well as autocratic leadership style of the manager. As a
result, critical opinion and views would then be taken into consideration (Leitch and
Volery, 2017). For example, the market expansion and market penetration of Tesco in
UK was taken post the performances of the employees associated with the
organization.
In the domain of decisions regarding mutual benefit of the management as well as the
employee, relationship with the employees plays an extensive role in the retention of the
same. This would be because, in the current market of changing skill requirements, it is
entirely upon the management of an organization to cater to the demands. This might
be from new recruitments or from the training of the existing staff of the organization
(Beaudry et al., 2016). The nature of employee relationship with the peers along with
the management would affect this decision.
From the above three domains, it could be deduced that the external factors that
influence the decision-making would be competition and technology. However, the
internal factor would include peer-to-peer relationship coupled with performance
efficiencies. This would be because; performance efficiency drives employee
relationship with the management in the positive or negative direction.
P6: Identification of key elements regarding employment legislation coupled with
analysis of impact on HRM decision and its making.
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