Tesco HRM Report: Functions, Recruitment, and Performance Evaluation

This report provides a comprehensive analysis of Human Resource Management (HRM) practices at Tesco plc. It begins with an introduction to HRM, defining its core functions and purpose within the context of Tesco's business operations, including its recruitment, selection, and staffing processes. The report then delves into the strengths and weaknesses of Tesco's recruitment and selection procedures, differentiating between internal and external recruitment methods. It further examines various HRM practices, such as training and development, performance appraisals, compensation, and conflict resolution, illustrating their significance in enhancing employee performance and contributing to the company's profitability. The report also highlights the importance of maintaining positive employee relations and the influence of employment legislation on HR decision-making. Finally, it demonstrates the practical application of HRM applications within Tesco, offering a detailed overview of how these practices are implemented and managed to achieve organizational goals.

Unit 3: Human Resource
Management

Table of Contents
INTRODUCTION .............................................................................................................................3
MAIN BODY.....................................................................................................................................3
ACTIVITY 1......................................................................................................................................3
HRM purpose and functions.......................................................................................................3
Recruitment and selection process weakness and strengths.......................................................5
ACTIVITY 2......................................................................................................................................7
Organization used various HRM practices.................................................................................7
HRM practices has significance role in terms of raising the profitability of the company8
Critical of HRM practices and Application in the organization..................................................8
ACTIVITY – 3...................................................................................................................................9
Significance of maintaining employees relations for the HR decision making.................................9
Influence of employment legislation on Human resource decision-making.............................10
Demonstrate the Application of HRM applications..................................................................11
CONCLUSION................................................................................................................................13
REFERENCES.................................................................................................................................14

INTRODUCTION
HRM is defined as a business practice or process which is concerned with the functions of
recruiting, controlling, selecting and hiring of the best skilled manpower for the job post. It is
related with the management function of the business organization thereby managing proper
allocation of business as well as human resources as available with the company for smooth and
efficient working. It emphasizes on maintaining of better communication and relationship among
employees for more productivity and profitability aspects. The present file is based on Tesco plc
which is a British multinational groceries and merchandise retailer in United Kingdom having
control over 28.4% share in the retail market sector. This company is engaged in the retail
business function having different product variants viz. Hypermarket, convenience shop,
superstores etc. The report will define Human resource management functions and purpose along
with key benefits and loopholes of recruitment & selection procedure. Also, description of HRM
practices benefits to employees and business firm as well. Furthermore, evaluation of HRM
practices in relation with raising of profitability & productivity aspect of organization will be
done. Analysis will be made about employee relation importance with elements of employment
legislation. At last, it will provide application use of HRM practices.
MAIN BODY
ACTIVITY 1
HRM purpose and functions.
Human resource is considered as one of the most valuable asset of business organization.
By properly managing and controlling this resource, every business organization can improve its
business functions viz. Productivity and profitability. It is having its main focus on recruitment of
the best qualified and appropriate management personnel for the job post. It also provides
direction to the employees so as to work towards attainment of set defined business goals and
objectives in better and cost effective manner. Following is the purpose of HRM thereby assisting
Tesco in maintaining its employee retention:
1. To employ creative and innovative thinking, knowledge and skills of employees efficiently
so that proper utilization of available human resources can can be done for attainment of
business goals (Vanhala and Ritala, 2016).
2. By offering monetary and non monetary incentives to its employees, Tesco has been able
to motivates them and is able to satisfy their needs and wants.
3. Tesco by encouraging and determining each individual employees so as to realise their full

potential will be able to enhance job satisfaction level among them thus increasing their
motivation.
4. One of the main objective of HRM is to ensure effective as well as proper utilization of
available human resources and its development.
5. Providing Tesco with highly qualified and skilled employees having creative thinking, high
motivation level and better knowledge as well.
6. Human resource management of Tesco always ensures that its employees personality and
capabilities are developed and enhanced so as to perform in more better and productive
manner (Hassan, 2016).
Functions of Human resource management are closely interrelated with each other. Thus, human
resource management of Tesco performs following functions which are as follows:
1. Managerial Function – This related with management of available and limited business
as well as human resources of the company for the betterment and smooth functioning of
Tesco. It consists of following parts:
 Planning – It is a process of formulating strategies, policies and frameworks in line with
the goals and objectives as determined by the company. It helps Tesco in making proper
allocation of resources as per the plans and needs of different business departments.
 Organising – Is related with the function of structuring and defining of allocation of job
and delegation of authority to each individual employees for performing a particular task.
 Staffing – A process which involves subject matter related to hiring, recruiting and staffing
of best candidate for the job work. It is concerned with setting performance standards,
training and development and compensation related issues of its employees.
 Directing – Is a process which is related with the concept of leading and giving direction
to its employees for attainment of set defined business goals and objectives. Tesco helps its
employee in increasing their morale and motivation level so as to perform in much better
and effective manner.
 Controlling – A process which is related with setting and formulating standards,
guidelines and norms related to performance and activities as undertaken by employees in
line with the objectives defined (Farouk and et.al., 2016). It helps in tracking and
monitoring actual performance in comparison with standards set for taking preventive and
corrective measures required if any.
2. Operating Function – It is related with the operational and service functions of the
business firm monitoring each department is performing in a better and effective manner
towards attainment of set defined business goals. It basically includes:
 Procurement – Concerned with process of procuring and recruiting right people for right

jobs at the right time for betterment of business as a whole. It is duty of HR manager to
provide Tesco with right kind of candidate in required number for smooth and better
functioning of its operations.
 Development – It helps Tesco in ensuring proper development and growth of its
employees by imparting regular and updated training, seminars and workshops.
Development helps employees in sharpening their skills, knowledge and values which
indirectly benefits productivity and profitability aspect of Tesco (Noe and et.al., 2017).
 Compensation – Is related with terms such as wages, salary and incentives which
employees is going to receive for contribution made towards attainment of business goals
and objectives (Nankervis, Baird and Shields, 2016). Human resource management of
Tesco ensures fair and equitable remuneration for its employees for improving their
standard of living.
 Maintenance – Basically deals with factor of protecting and promoting rights and safety
of employees at the workplace. Tesco provides various benefits to its employees like
medical, educational, transportation facilities to its employees. Also, it maintains the
morale of its employees by giving security measures such as pension, insurance, provident
funds etc.
Recruitment and selection process weakness and strengths
For ensuring the success of Tesco plc recruitment and selection process plays very crucial
role in the organization. This is done to choose suitable candidate for the vacant job. Efficient
employees helps to increase productivity in the organization. Two types of recruitment takes
places which are as follows -
Internal Recruitment – It takes place by the promotions and transfer of existing employees in the
company. The HR manager identifies employees performance and who are performing at extra
ordinary level get promotion in the Tesco plc. This recruitment is helpful for motivating the
employees (Farouk and et.al., 2016). The employees feel appreciated through promotions. They
started performing at there optimum level when they get appreciation from their seniors. The
internal recruitment is cost-efficient. The employees are already familiar with the cultural and their
responsibilities. Thus, there is savage of training cost.
Strengths
 The expenses of internal recruitment is less than compare to external.
 The employees well-known with the company. Thus, they are able to operate business
fully.

 The delegation of authority is also done smoothly as the HR Manager knows what are the
current weaknesses and strengths of their employees. Thus, they are able to assign duty to
the employees who are worthy capable (Hassan, 2016).
 This recruitment is helpful in boasting employees morale.
Weaknesses
 The chances of the potential employee get limited as no newly employee get recruited.
 The organization is unable to gain more as there is no innovation takes place. As there in
external recruitment the employees are able to generate new ideas.
 This may create the disputes among the employees who are not get promoted.
External Recruitment – It is a process in which the organization hire people from outside. The
Company hires people through conducting interview. Through this they are able to choose best
candidate for the vacant job role in the Tesco plc.
Strengths
 External recruitment helps to bring innovation at the workplace as the people who are
hired from outside are able to generate new ideas for the company.
 This recruitment provides opportunity to HR department to recruit the best candidate from
the larger pool.
 The people who are externally recruited had experience which they can share with the
other employees.
Weaknesses
 The external recruitment is time-consuming process.
 External recruitment is expensive than the internal one as there is training cost in it. For
doing advertising and publishing articles in newspaper for the vacant job there is
occurrence of huge costs.
 The candidate has to face rejection in the external recruitment (Mao, Alizadeh, Menach
and Kandula, 2016). Thus, it is not. as much effective as it seems,
Selection refers to the process of hiring the most suitable candidate for the vacant job in
Tesco plc. It is process of interviewing the candidates who has applied and granted application for
the job role in the company. Thus, by conducting the interview round, the HR manager of the
company is able to select the best. Various selection tests in Tesco plc are as follows -

Mental ability – This test is helpful for the company to ensure the intelligence of the candidate
who is interested in doing job in Tesco plc. This test shows the decision-making ability of the
candidates. This test also measures the reasoning and numerical skills.
Mechanical test – This test is helpful for identifying the mechanical work of the candidate. To
know the candidate problem solving ability this test is helpful.
Performance test – This test helps to identifies the speed and accuracy of the candidate. This test
evaluates the acquired knowledge of the individual (Noe and et.al., 2017).
ACTIVITY 2
Organization used various HRM practices
Through using the various HRM practices the Tesco plc is leads to increase its profitability.
This is helpful for the company in order to take competitive edge. The HRM practices are
accommodating for increasing the performance of the employees. Thus, Tesco plc HR manager
use various HRM practices which are as follows -
Development and Training - The HR department of the company gives training to their
employees. For making the employees familiar with the current job role in the company the
training plays crucial role. The training is given on digital monitors or by conducting the induction
session. By this the employees get to know what are their responsibilities in the organization. It is
crucial for the employees as it is helpful for raising the chances of their promotion.
Performance Appraisal – The employees get appreciation when they surpass in the organization
in the form of performance appraisal (Paauwe and Boon, 2017). As they get appreciation from the
senior manager there morale get boosted. They also get promotion when the HR manager of the
company finds that are capable enough. This is helpful for building the good relationship with the
employees.
Benefits and Compensation – Various benefits are given to the employees on timely basis for
boasting their morale. This can be in any form either in terms of the bonuses, salary increments
and fringe benefits. As the employees get various benefits there motivation level get increased.
They started working at their optimum level. Thus, this eventually turns into higher productivity.
Conflict resolution – The HR manager work is to listen employees problems and to provide
solutions to the problem. They identify the reason of the conflict in the depth and further take the
measure to resolve it (Noe, Hollenbeck and Wright, 2015). Through resolving the conflicts the
employees are able to shift their interest towards the work. Thus, this is helpful for increasing the
profitability of the organization.

HRM practices has significance role in terms of raising the profitability of the company
HRM parctices are helpful for the Tesco plc for improving the overall profitability. The
effectiveness of HRM parctices in the organization are discussed as follows -
 HRM is very crucial and critical function of any organisation, which includes Recruitment,
Selection, Orientation, Evaluation, Compensation, Training and Development, Evaluation,
Promotion, safety measures, motivation & Morale of employees, wellness, administration
and performance management and all the activities that are associated with the employees
driven by the motive of achieving organisational goals.
 How well an organisation is performing, its growth rate and how successful it is in
achieving its Goals purely depend upon the persons who are running the organisation, who
are working for it every day altogether (Sander and Yang, 2016).
 HRM at Tesco is solely responsible for selecting who will be working for Tesco, choosing
the right and the best people to work for Tesco as it does all the work relevant to choosing
the right candidate. It adopts two types of recruitment process – A). Internal recruitment –
to fill the vacant position from their existing employee as per their skills. It has so much
benefits like their own employee can trust on Tesco for their career growth which helps
them to work with feeling of contentment and dedication and for Tesco also, if any
external candidate is chosen then much time is consumed in making them known about
company policies, way of working, employee atmosphere, so it takes longer for an new
employee to work with his optimum potential than existing employee. B). External
Recruitment: As per the old saying, if the desired result is not coming, then we need to
change the ways, likewise at sometimes, an organisation needs much talented candidates
who can’t be found within the organisation, hence the need of external recruitment is
required in changing the ways of execution. Tesco’s HRM plays this role in much better
way.
 So one can’t deny the fact that how effective is Tesco’s HRM in establishing the position it
holds in present.
Critical of HRM practices and Application in the organization
As per the view of Nankervis, Baird and Shields, (2016), it is stated that by giving
training to the employees they are able to make improvements in their performance level. At
times, HRM conducts Training and Development for their employees as well to increase their
knowledge, productivity, making them learn in new things, to increase the work potential, acquire
new skills. For that they provide mentors, coaching and various training programmes.

According to Noe and et.al., (2017), it is stated that recruitment and selection is helpful for
the organization to create the pool of talented candidates. HRM plays an important and vital role
in improving productivity and profitability at Tesco. Company is chief food retailer in Britain. No
other British-based supermarket chain has operations overseas (Vanhala and Ritala, 2016). What
distinguish company from their competitors and making Tesco a retailer giant is somehow
dependent on their ways of well managing the Human Resources as well.
As per the view of Farouk and et.al., (2016), it is stated that Performance appraisal is
helpful for boosting the morale of the employees. By giving the sense of apprecation to the
employees in form of promotion and transfer the employees feels motivated and they started
working with their full potential. The transfer provide them opportunity to start working at their
new zone and culture. This is helpful in refereshing the employees mind. Hence, the performance
standards of the employees get increased.
ACTIVITY – 3
Significance of maintaining employees relations for the HR decision making
Employee relations is helpful for the growth of Tesco plc. Having a strong relationship
between the employees and boss is beneficial for the organization. The importance of employees’
relations is discussed as follows -
Productivity
The strong employment relation creates a conducive working environment for the employees of
Tesco plc. Hence, they are able to work in more efficient manner in the organization. Tesco plc has
invested in the employees relations programs (Bratton and Gold, 2017). Thus, the overall
productivity of the organization gets increased. As the HR department of the company facilities
the timely benefits by measuring the performance level of the employees. It is helpful in
increasing the employee’s morale. Hence, the employees is able to perform with full potential as
they feel motivated.
Employee Loyalty
Through creating a working environment which is pleasant for the employees, it is helpful to gain
the employee’s loyalty in the business (John and Taylor, 2016). A sense of appreciation is
necessary from the side of the HR Manager because when the employees’ feels appreciated they
are tended to give their best in the organization. By improving the employee loyalty in the
business. The HR department of Tesco plc is able to save the recruitment and training costs,. The
time for conducting the interview also get saved as the existing employees retained in the

organization.
Conflict Reduction
When the working conditions in the firm are friendly, the employees are able to coordinate with
one another. Thus, the chances of conflicts get reduced. As the HR manager of the company takes
necessary measures to resolve the conflicts (Sparrow, Brewste and Chung, 2016). Hence, less
conflicts results in higher productivity of the business as the employees are moreover focused on
achieving the targets of the company rather than just wasting time in discussions and arguments.
Thus, this time is utilized to improve the overall performance of the employees.
Improving the communication
If there is healthier relationship between the manager and the employees. These facilities the
communication at the workplace, The employees in Tesco plc are able to share their problems and
issuers in front of the HR manager. They feel free to talk with their bosses without any hesitation.
Through this the HR manager is able to take corrective measures for resolving those issues. Thus,
by resolving the employee’s issues the overall productivity of the business gets increased.
Influence of employment legislation on Human resource decision-making
Equity Act 2010 – This Act helps the employees to raise voice against the injustice done at the
workplace. It provides fair treatments to the employees. Thus, the Tesco plc, HR manager has to
keep in the mind that employees are not judge on the basis of equality, age and race. The
employees have to treated equally for adhering the Equity Act 2010. It prohibits any kind of
discrimination takes place in the company (Berman, Bowman and Van Wart, 2019). The company
implement this law at the workplace for ensuring the employee's satisfaction level This law most
of the time applied when the HR manager of the company conduct interview round. The candidate
is selected on the basis of its own capabilities. No type of discrimination is done during
recruitment and selection process.
Consumer protection act 1986 — This Act forces Tesco plc to produce healthy food products for
the customers. This law is helpful to gain customer loyalty, The customers are satisfied when the
company offers them healthy food products. The act enforces the buying rights of the consumers.
Thus, the Tesco plc ensures that packaging and labelling of the products is done in tactful manner
so that customers get aware what are ingredients in available in the products. This Act ensures
total safety of the customers and protects them from the fraud and cheating.
Health and safety act 1974 — This Law ensures the safety and health of the employees at the
workplace. The HR manager ensures that proper catenate and water cooler facilities are get

availed for the employees so that employees doesn't face any problem in terms of hygiene and
health at the workplace. For ensuring safety of the employees the HR manager of the company
ensures that proper first aid facility is being given to the employees if they got any injury while
performing their duty and responsibility at Tesco plc.
Demonstrate the Application of HRM applications
Person Specification – It refers to the document that defines the individualist qualification, work
skills and experience. Thus, the HR manger of the Tesco plc select the candidate by analysing its
person specification. HR department of Tesco plc select the candidate on the basis of identifying
the knowledge, qualification and the personal skills (Stewart and Brown, 2019). Through this the
HR manager of the firm identifies whether the candidate fits in the selection criteria or not.
Personal specification
Profession summary — I am looking forward to have a job as a HR Manager. I have look
organization, polices, procedures and people so closely based on my experience. I want this job
so that i can improve the organization productivity.
Core qualification -
Experience in HR department about 1 year in small business.
Course of Staff supervision 15 days.
Theoretical Qualification
Acadmeny of London, Graduate
Other Skills
 Knowledge of computer
 Speaking Skills
 Time management
 Team Buidling
 Creative skills
Experience
 2-5 years as a HR assistant.
Job Description – It described about the job role in detail. This indicates what the company wants
from the candidate to get selected for the vacant job role in Tesco plc. Thus, the Job description is
published by the company in the newspaper and has displayed on the official website. So that they
are able to create large pool of talent in their organization (Collings, Wood and Szamosi, 2018). Its
provide detail information about the role and responsibility that candidate should follow after
getting the job. It describes all the requirements which the candidate should have in terms of

knowledge, experience and skills for a particular job role in the company.
Job Description
Job title — Position of Human Resource Manager
Summary — Job vacancy of Human Resource Manager. We are inviting you to give your best
in the organisation. To show some competitive skills and to increase productivity at the
workplace.
Competencies
 Communication quality
 Leadership quality
 Analytical and critical thinking
 Time management quality
Job duties -
 Taking interview of candidates.
 Conflict Resolution at the workplace.
 Encouraging the employees.
 Give suggestions in polices and decision making.
Requirements -
 Degree of MBA in HR.
 Post Graduate deploma in HR department

CONCLUSION
From the above project report it can be concluded that Human resource management is
process of improving the performance level of the employees in the organization. It is the
systematized approach which is helpful for the firm in order to gain a competitive advantage. It
has been concluded that for building good relationship with the employees the HR department of
the Teco plc needs to conduct performance appraisal programmes. Importance of HRM in
improving productivity and profitability at Tesco has been understood in this report. It has been
concluded that various HRM parcties is followed by the HR department of Tesco plc that is
Employee retention, Performance management and rewards, Employer branding, Talent
management. and Leadership development for improving overall performance of the firm. It has
been evaluated that HR manager follows the employees legislation related to their workplace.

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<http://www.yourarticlelibrary.com/hrm/human-resource-management-meaning-objectives-
scope-and-functions/35229>.