Analysis of Human Resource Management Practices in Tesco PLC

Desklib provides past papers and solved assignments for students. This report analyzes Tesco PLC's HRM practices.

Human Resource Management

Table of Contents
Introduction.........................................................................................................................................3
LO 1 Explain the purpose and scope of Human Resource Management in terms of resourcing in
your chosen organisation with talent and skills appropriate to fulfil business objectives..............4
Explain the purpose and the functions of HRM, applicable to workforce planning and resources in
your chosen organisation (P1, M1)....................................................................................................4
Assess how the functions of HRM can provide talent and skills appropriate to fulfil business
objectives...........................................................................................................................................6
Explain the strengths and weaknesses of different approaches to recruitment and selection (P2, M2)
...........................................................................................................................................................6
LO 2 Evaluate the effectiveness of the key elements of Human Resource Management in an
organisation........................................................................................................................................10
Explain how different HRM practices benefit the management and employees of your chosen
organisation (P3, M3)......................................................................................................................10
You should also evaluate the effectiveness of the different HRM practices in terms of raising
organisational profit and productivity (P4)......................................................................................11
LO 3 Analyse internal and external factors that affect Human Resource Management decision
making, including employment legislation......................................................................................13
Analyse the importance of employee relations in influencing HRM decision-making (P5, M4).....13
Identify the key elements of employment legislation and the impact it has upon HRM decision-
making in your chosen organisation (P6).........................................................................................13
LO 4: Apply Human Resource Management practices in a work related context.......................15
Illustrate the application of HRM practices in a work-related context that you might be familiar
with so you can use specific industry examples (P7, M5)................................................................15
Conclusion..........................................................................................................................................17
References..........................................................................................................................................18

Introduction
Human resources management is concerned with the most important resources an
organisation has i.e. its employees. The performance of the employees of an organisation is
directly related with the performance of the organisation. Hence, organisations these days
focus a lot on the management of their human resources and choose to have a dedicated
human resource management department that ensures the possibility of having a workforce
that would be able to take the organisation to the next level and contribute in its success. If an
organisation has a skilled and motivated workforce, it would be able to achieve its mission
and vision. Hence, human resources should be managed very carefully by the organisations.
In the current report various human resource management practices such as workforce
planning, recruitment and selection of the employees, their employment management,
training and development would be analysed using the example of Tesco PLC.
Tesco PLC was founded by Jack Cohen in 1919 as a small grocery stall which has grown to
become the largest supermarket and retailer in UK. The Headquarter of the company is in
Welwyn Garden City, Hertfordshire, UK. Tesco has a trained workforce and it employs
approximately 4, 73,000 employees that work across 6,873 stores of the company. Some of
these employees work in the central departments of the company that manage the operations
of all the company stores including the warehouses and other departments like Marketing,
Sales, Finance and manufacturing etc (Schuler and Jackson, 2018). Tesco PLC has captured
32.4% market share in Domestic UK industry which makes it the largest company in the
segment. Tesco PLC is also the 3rd largest supermarket and retailer in the world. Since Tesco
is facing tough competition from ASDA and Sainsbury, the company is trying hard to
improve its workforce through recruitment, selection and training so that it could have a
competitive edge in the market.

LO 1 Explain the purpose and scope of Human Resource Management in
terms of resourcing in your chosen organisation with talent and skills
appropriate to fulfil business objectives
Explain the purpose and the functions of HRM, applicable to workforce planning
and resources in your chosen organisation (P1, M1)
The Human Resource Management could be defined as – “A process that recruits, develop,
manage and organises the human resources of an organisation so that they add value to
the organisation and help it in achieving its goals and objectives”
However, the different human resource practices have different purposes, the main purpose of
the human resource management is to make sure that the organisation has a skilled and
trained workforce that could implement the business strategy of the company and produce the
desired results (Banfield, Kay and Royles, 2018). This purpose is fulfilled by the different
functions of the HRM such as recruitment and selection of the employees, workforce
planning, training and development etc.
Functions and purpose of HRM at Tesco PLC
1. Planning and Forecasting
The supermarket industry is highly competitive and Tesco PLC needs to make
changes in its business strategy. Now, the HRM department has to decode the
business strategy of the company and also accounts for the business environment and
then forecast the needs of the human resources for the company so that all the
requirements could be addressed (Bratton and Gold, 2017). This planning and
forecasting is not limited to the numbers of employees Tesco needs but also the
different skills and level of experience of the resources are planned by the HRM
department. The planning and forecasting process also involves identifying the
sources from where desired resources could be acquired.
2. Recruitment and Selection
After the initial stage of the workforce planning and forecasting is done, the HRM
department needs to execute the recruitment and selection process to fulfil the purpose
of having the desired skills and numbers at Tesco PLC. Tesco PLC uses internal as
well as external recruitment process at this phase. Internal recruitment focuses on the

existing resources of the organisation that could be used for future requirement while
external recruitment focuses on the hiring of the new employees from market.
3. Management of the Resources
One of the most important purposes of the human resource management department is
to ensure that the resources of the organisation are in a shape that they could fulfil the
job requirements (Youndt et al, 2016). While hiring the new employees is important
task, managing the employees of the organisation is more important. Employment
contract preparation, performance management of the employees, organising the
different training programs and focusing on the motivation of the employees are
crucial functions of the HRM department at Tesco PLC.
4. Employee Relations
Good employee relations are the key for the success of any organisation. The human
resource management at Tesco PLC always try to keep cordial relations with the
employees by maintaining excellent employee relations (Brueller, Carmeli and
Markman, 2018). Inclusion of the employees in the decision making process,
collective bargaining and conflict resolutions are very important for good employee
relations which are very important functions of the human resource management at
Tesco PLC.
5. Compensations, Benefits and Employment Contract
All the benefits and compensations to the employees are included in the employment
contract which is established at the time of employment. However, these
compensations and benefits keeps changing depending upon the performance of the
employee and the time they have given to the organisation. The HRM department
initiates the appraisal process as a part of the performance management. Similarly, the
human resource management also manages the employment cessation if required.
6. Maintaining the Legal Framework
Tesco PLC has always maintained its legal status by following all the government
legislations regarding the employment. Various legislations such as Employment Act,
Working Hours Directive, Equality Act, and Minimum Wages Act etc. are included in
the HR policies of the Tesco PLC.
7. Employees’ Training and Development
High level of competition in the supermarket needs Tesco PLC to keep its resources
trained with the new skills that arrive in the industry and necessary for maintaining a
competitive edge in the market. While human resource management arranges the

induction, classroom training and mentoring programs for the new resources, it also
keeps working for the development of the existing resources of the organisation.
Assess how the functions of HRM can provide talent and skills appropriate to
fulfil business objectives.
The business objective of Tesco PLC could only be fulfilled by an enthusiastic, skilled,
motivated, trained and experienced workforce that is provided by the HRM department
through its different functions. Another important purpose of HRM department is to have the
required skills and numbers to address the future requirements and implement the expansion
plans of Tesco PLC. This part is very important for the company because there is very less
probability that a resource would be available as soon as a requirement is raised by the
managers (Decenzo, and Robbins, 2015). Hence, HRM department has to work with the
management of the company and plan the resource acquisition for any possible future
requirement. Similarly, the training and development program of the HRM department
polishes the skills of its workforce and make it ready to take on the competition in the
industry.
Explain the strengths and weaknesses of different approaches to recruitment and
selection (P2, M2)
Tesco PLC uses different approaches to selection and recruitment depending upon the
requirement raised by the managers in the organisation. Tesco uses internal recruitment
approach when company has an appropriate resource either in the reserve or in another role
from where he could be shifted to the new role without any negative impact on the current
role of the employee. Tesco uses external recruitment when company hires new experienced
resources from other organisations or new resources directly from colleges.
Recruitment Approaches
Some of the most used approaches for recruitment at Tesco PLC are:
1. Tesco Recruitment Portal
Tesco PLC has a dedicated recruitment portal (https://www.tesco-careers.com) that
company uses for new recruitments. The job description for the vacancies in the
organisation is used for developing the job advertisement content at this recruitment

portal and all the job related information is provided. Interested candidates who
qualify for the job could apply directly using this portal. Job search facility with
different keywords is also available. Customised forms are also provided by the HR
managers for every job in which candidates fill their details.
2. External Job Portals
When Tesco PLC needs resources in good numbers, the company goes for
advertisement on the external job portals along with its own portal. The external job
portals have a wider reach then the single own portal of Tesco PLC. These job portals
also send new jobs posted notification on the portals to the registered candidates that
make the advertisement more successful (Dyer, and Song, 2015).
3. Placement Agencies
There are many placement agencies that are in the field of staffing and resourcing.
Some of these agencies have speciality in specific job roles while some attends all
types of requirements. When Tesco PLC does not want to include its own HRM
resources in the recruitment process, the job advertisement and resume collection is
outsources to these external placement agencies. Resume short listing is also carried
out by these agencies.
Strengths and Weaknesses of above Approaches
Recruitment through own career portal is always the most convenient and useful option for
Tesco PLC. The biggest benefit of this approach is that only the candidates who are looking
to join Tesco PLC visit the portal and unnecessary resumes are not received by the company.
Also, another benefit is the customised form associated with the job advertisement which is
filled by the candidate during the submission of the job application. This helped the HR
managers in resume short listing. However, this approach has the shortcoming of shorter
reach and sometimes a good candidate might miss the job advertisement.
Job advertisement on online job portals is a good choice when company is looking to hire
employee on bulk basis because of Tesco would receive good response from market as many
people are registered with these online job portals (Folger and Cropanzano, 2016). However,
sometimes, it becomes difficult for the HR managers to manage huge numbers of applications
they receive from these job portals.
Recruitment through external placement agency reduces the workload from the HRM
department of Tesco PLC as job advertisement, resume collection and resume short listing is

left to the agency. Another benefit of this approach is the candidate database of the placement
agency. Placement agency short lists many candidates from their database without even the
requirement of job advertisement. Some placement agencies also provide the facility of
resource replacement if hired resource is not suitable for the job. But this approach might
result in poor short listing of the candidates as HR managers of Tesco PLC are not involved
in the process.
Selection Approaches
1. Online Test
Online test is conducted as an elimination round by Tesco PLC so that only the good
candidates proceed further in the selection process.
2. Written Test
This is the main qualification test that is used to assess the technical skills of the
individuals. Candidates who clear online test are called for the written test in the
premised of the company. The fundamental knowledge of the candidates is tested
using this approach (Gist, 2015).
3. Group Discussion
This approach is used to assess the communication skills, presentation skills, general
knowledge and subject knowledge by Tesco PLC. Candidates who clear written test
are called for GD round where specific topic for debate is provided to the candidates.
4. Interview
Candidates who clear all the previous selection rounds are called for the interview. An
interview panel formed by the HRM department consisting department managers,
project leads and HR managers interviews the candidates for final selection.
Alec Rodger’s 7 Point Plan
All the above mentioned approaches for selection focus on the different attributes of the
candidates. Alec Rodger’s 7 Point Plan is a good choice for Tesco PLC that could be
followed in the selection process. These 7 points are explained below:
Factors Description
Physical Make Up Excellent physique, appearance and personality of the

candidate
Attainments The formal qualification of the candidate and
experience
General intelligence Fundamental Intellectuality
Special Attributes Knowledge of IT and Supermarket Industry
Interest Practical –constructional, physically
active, social, artistic
Disposition Acceptability, influence over
others, steadiness,
dependability,
Circumstances Good Background
Strengths and Weaknesses of the above Approaches
Online test is a good approach for elimination of unworthy candidates. Not many resources
are required for this practice. However, sometimes, substitute candidates appear in the online
tests which results in the qualification of wrong candidate for further process. Written test is a
good approach for the selection of the candidates as Tesco could test the basics as well as
advanced knowledge of the subject using this approach. However, this approach needs lots of
resources in the form of human resources to manages the process and lots of space along with
event management expenses. Group discussions are always a good approach for higher level
positions in the company.

LO 2 Evaluate the effectiveness of the key elements of Human Resource
Management in an organisation
Explain how different HRM practices benefit the management and employees of
your chosen organisation (P3, M3)
Some important HRM practices and their benefits to the Tesco PLC and its employees are
described in the below table:
HRM Practice Benefit to the Employee Benefit to Tesco PLC
Recruitment / Selection Provides opportunities to
people so that they could
grow in the professional
career.
Provides required resources
to assist in the growth of the
organization and achieve
organizational goals and
objectives
Training / Development Personal and professional
development of the
resources. Learning new
skills and technologies.
Improve in personal
performance (Hanks, 2015)
Improved productivity of the
employees helps Tesco in its
overall growth. Net revenue
of the organisation increases.
Performance Management Helps in the assessment of
the personal skills of the
employees. Gives
opportunities to the
employees to work on their
weaknesses and convert them
into their strengths
Tesco PLC is able to analyse
its workforce capabilities and
plan accordingly.
Employee Relations Good employee relations
motivate the employees.
Their participation in the
decision making increases
Good employee relations
result in fewer conflicts in
the organisation and enhance
the productivity and profits.

You should also evaluate the effectiveness of the different HRM practices in
terms of raising organisational profit and productivity (P4)
Impact of Development and Training at Tesco PLC
Tesco PLC is an organisation that always focuses on the quality of the resources. This is the
main reason behind the organisation adopting a structured development program for the
employees. For all the new employees that are hired by Tesco PLC directly from colleges, the
company first organises an induction program to make the new employees familiar with the
HR policies of the company and the detailed understanding of the mission and vision of the
company. The 3 months long training program for the new employees make sure that new
resources are trained by the best experts in the industry. Along with specific technical
training, all the employees are given a general training in multiple technologies that enable
them to handle different roles during their employment with Tesco PLC. This practice does
not only help in the growth of the employees but also brings flexibility in the organisation.
The training and development program of Tesco PLC make sure that all the employees of the
company are updated with the latest technologies and skills in the industry. Hence, the
employment opportunities for the resources increases while Tesco gets a workforce that could
handle any challenging situation in the industry (Kuipers et al 2014). Training and
development program of Tesco PLC also has a positive effect on the motivation of the
employee that enhances the employee’s productivity. Enhanced productivity of the employee
provides the opportunity for extra profit for the company.
Impact of Employee Relations at Tesco PLC
Tesco PLC focuses a lot on employee relations because the company understands the
company understands the importance of its human resources. When there are more than 4,
70,000 employees in an organisation, it becomes difficult for the management to avoid the
conflicts with the employees. However, the good employee relations approach by human
resource management department at Tesco PLC has allowed the company to keep these
conflicts at the minimum possible level. Participation of the employees in the decision
making process empowers the employees which could be seen in enhanced loyalty of the
employees towards Tesco PLC. This enhanced loyalty is an important factor in reducing the

employee turnover. Hence, less expenses on the recruitment and selection and increased
profits for the company