Tesco PLC's HRM: Recruitment, Selection, and Employee Relations

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Human Resource Management

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
Explain the strengths and weaknesses of different approaches to recruitment and selection (P2, M2)
...........................................................................................................................................................6
Critically evaluate the strengths and weaknesses of approaches to recruitment and selection (D1)...8
LO 2 Evaluate the effectiveness of the key elements of Human Resource Management in an
organisation..........................................................................................................................................9
Explain how different HRM practices benefit the management and employees of your chosen
organisation (P3, M3)........................................................................................................................9
You should also evaluate the effectiveness of the different HRM practices in terms of raising
organisational profit and productivity (P4)......................................................................................10
Evaluate the HRM practices and their application (D2)...................................................................11
LO 3 Analyse internal and external factors that affect Human Resource Management decision
making, including employment legislation......................................................................................12
Analyse the importance of employee relations in influencing HRM decision-making (P5, M4).....12
Critically evaluate employee relations and the application of HRM practices that inform and
influence decision-making in an organisational context (D3)..........................................................12
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.......................14
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)................................................................14
Conclusion..........................................................................................................................................17
References..........................................................................................................................................18

Introduction
The aim of the human resource management in an organisation is to manage the employees
of the organisation so that they could perform the desired function. It is the responsibility of
the HRM department to ensure that the employees in the organisation are able to take up the
challenges and help the organisation in its growth. The HRM department employs different
practices such as hiring of the employees, training the resources, managing their performance
and managing the employment contracts. The current assignment will look into these
functions of the human resource management using Tesco PLC as an example.
Tesco PLC was started as a small stall by Jack Cohen in 1919. Because of the efforts of Jack
Cohen, Tesco soon grew at a good pace and now the company has become the largest retailer
in United Kingdom. Tesco has approximately 4, 50,000 employees who are very skilled and
trained to do their job. These employees of the company manage approximately 7,000
facilities of the company. Because of its excellent employees, the company has been able to
have 31% share in the retail sector in UK.

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)
Human resource management is the process that is used by an organisation to manage its
employees for the success of the company and its ability to achieve its goals. The purpose of
the HRM department in Tesco is to have an employee for every job who is qualified to
address that job and produce the desired output while working on that job (Taylor, Beechler
and Napier, 2017). Hence, HRM department ultimately has to hire and train the resources to
achieve this purpose. Along with this, the HRM department also has to keep an eye on
employee turnover and make sure that skilled employee does not leave the organisation:
Main functions of HRM department in Tesco are
HRM planning
This is the prime function of the HRM in Tesco PLC. The HR manager plans different human
resource related activities according to the market conditions, budget of the company,
competition in the market etc. This planning includes the forecasting where HR manager
needs to predict the future requirement and then initiate the hiring of the resources to fulfil
that requirement (Cascio, 2015).
Recruitment and Selection
The recruitment and selection involves the preparation of the job description and person
specification as per the requirements raised by the managers in different departments in
Tesco. These jobs are then advertised and selection of the employees is carried out. Selection
process involves various tests such as Technical Test, Aptitude Test etc and then interviews
are carried out to select the best candidates.
Training of the Employees
The HRM department at Tesco focuses a lot on the skills of the employees and regular
training for the employees is organised. For the new resources, mandatory training of 12
weeks is done at Tesco. Tesco HRM department uses different techniques for the training of

the employees such as classroom training, on the job training, e-learning, mentoring,
seminars and conferences etc.
Employee Management
Managing all the employees of the organisation is very important. HRM department carries
out resource allocation on the basis of the requests of the managers and availability of the
resources. HRM department also manages the employment contracts and provides the
promised benefits to the employees (Datta, Guthrie and Wright, 2017). Employment
cessation is also managed by the HRM department.
Managing the employees’ performance is also the responsibility of the HRM department.
Performance appraisals are also carried out by the HRM department.
Managing Employee Relations
Relations between the management of the company and its employees are very important for
the success of Tesco. A balance between the demands of the employees and Tesco’s ability to
fulfil them has to be maintained which is the responsibility of the HRM department.
Collective bargaining is a process which is adopted by the HRM department in Tesco for
good employee relations (Dyer, and Song, 2015).
Maintaining the Regulatory Framework
There are many different rules and regulations in the form of Acts of Parliament that are
mandatory to be followed by the organisations such as Equality Act, Employment Act and
Minimum Wages Act. The HRM department in Tesco develops the HR policies and
employment contracts that adhere to these legislations.

Explain the strengths and weaknesses of different approaches to recruitment and
selection (P2, M2)
Strengths and Weaknesses of Different Recruitment Approaches
The strengths and weaknesses of recruitment approaches is provided in the below table:
Tesco Website Job Portal Placement Agency Internal
Recruitment
This is a recruitment
approach in which
Tesco uses its
website to advertise
the job. The vacancy
in the company, title
role, requirements
and eligibility
criterion is published
on the website of the
company
There are many job
portals such as
Indeed UK that are
developed
specifically for
recruitment. Tesco
contacts these job
portals and asks them
to publish the jobs
for which the
company wants to
hire candidates
In this approach,
Tesco hires an
external agency who
specializes in the
recruitment and
carries out the
process on behalf of
the employer (Folger
and Cropanzano,
2016)
In internal
recruitment, Tesco
HR uses the intranet
of the company to
invite applications
from the employees
of the company for a
different job
available within the
organization.
Tesco HR has full
control on the
recruitment process
Some control is
shifted to the job
portal executives
who are responsible
for the job
advertisement
Tesco has no control
on the process
Completely
controlled and
managed by Tesco
HR managers
Tesco can make any
number of changes in
the job description
even after the
vacancy is
advertised.
Once the job is
advertised, no
changes could be
made in the job
description.
The response in this
approach is better
Placement agency
either advertises the
job or uses its own
database of the
candidates to identify
the potential
candidates for the
This approach is
suitable when
numbers of vacancies
in the company are
low and there are
many resources in

This approach also
provides the
opportunity to the
HR manager to
create an application
form in any format so
that every
information that they
need for the
candidate assessment
could be received
than company
website approach
because of the large
access by the
candidates across the
country.
job.
However, the big
strength of this
approach is that it
does not take more
time and could be
done in a short time.
Some placement
agencies also give
resource replacement
facility within a set
time.
reserve.
The major strength of
this approach is that
it also provides an
opportunity of
growth to the
existing employees
of the company and
also results in cross
training of the
employees. It also
reduces the employee
turnover
Strengths and Weaknesses of Selection Approaches
Tests
There are different approaches to conduct tests for example Online Tests and Offline Tests.
Online tests are conducted using software and every candidate is provided credentials to login
to the software and answer questions online by selecting one right answer from the given
choices. This approach requires very less involvement of the HRM personnel which is the
biggest strength of this approach (Gist, 2015). Accommodating huge number of candidates is
strength of this approach. But this approach has the shortcoming of addressing the frauds as
replacement candidates could sit in online tests.
Offline tests have been used for a long time by Tesco for the selection of the candidates.
These tests include technical tests, personality tests, intelligence tests and aptitude tests.
Ability to test the candidates on so many levels is strength of this approach. However, this
approach falls short when numbers of applicants are too much.
Interviews
Interview is considered the universal selection approach and same is used by Tesco for the
selection of the employees. However, being the universal approach does not mean that this
approach does not have any weaknesses. One of the biggest weaknesses of Interview

approach is that it is a subjective approach and there might be a mistake in the assessment of
the candidate. Another weakness of the approach is that it is prone to interviewer bias which
could lead to the hiring of the wrong candidate. Another weakness of the approach is that any
mistake in the interview panel selection could jeopardise the entire recruitment and selection
process.
In order to address these weaknesses, the HRM department in Tesco has made some
significant changes in the interview approach. Tesco HRM department has developed a
structured interview approach in which a standard interview panel is created for the entire
selection process (Kuipers et al 2014). Strength of the interview approach in Tesco is that all
the candidates are asked a series of questions to standardise the process.
The reason behind the success of the interview approach in Tesco is that it enables the
organisation to assess the behavioural aspects of the candidates.
Critically evaluate the strengths and weaknesses of approaches to recruitment
and selection (D1)
Recruitment through the website of the company is the best recruitment approach which is
used by Tesco HRM department. Tesco HR managers are able to get the exact information
from the applicants that they need to short list them which makes the process very effective.
Internal recruitment approach is very beneficial for the company as expenses of the company
on external recruitment and selection process are saved by this approach (Tichy, 2016).
Selection through online tests, offline tests and interviews has been adopted by Tesco. Tesco
also uses Group Discussions approach for the selection of the employees. The decision
making abilities of the candidates could be easily tested using the Group Discussions along
with their ability to assess a situation. It is also used in testing the communication skills of the
applicants.

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)
Benefits of the HRM Practices
HRM practices generate benefit for the employer as well as for the employees of the
company. Some of these benefits are evaluated here:
1. Performance Management
The performance management practice of the HRM department in Tesco focuses on
the performance of the individuals via 360 degree technique in which the performance
of the employee is measured using the feedback from the customers, colleagues,
subordinates and supervisors (Lepak et al, 2015). This helps the management in
deciding the performance appraisals for the employees. On the other hand, this
process help in the assessment of the employee skills and HR department plans the
development process for the employees accordingly which is good for the growth of
the employee.
2. Training and Development
Tesco has developed a training program that consists the development opportunities
for every layer of the employees that work in the company. For example, all the new
employees in the company have to go through a basic classroom training program
which is mandatory. This is used by the management to train the employees in the
basic tasks. After that, job specific training is provided to the employees. This kind of
training arrangement creates a rising learning curve for the employee which is good
for his own growth and also for the growth of the company because he is able to
achieve the goals assigned to him.
3. Employment Management
The HRM department in Tesco takes care of all the technicalities of the employment
starting with the development of the employment contract to the employment
cessation and issuing the experience certificate to the outgoing employee. This
practice is very important for the employer Tesco because all the rules and regulations

have to be followed by the company while performing these tasks. For employees,
proper employment management makes sure that they receive their due benefits and
everything promised to them at the time of joining is provided to them by Tesco.
You should also evaluate the effectiveness of the different HRM practices in
terms of raising organisational profit and productivity (P4)
1. Training Practices
The main benefit of the training practices in Tesco is that it improves the skills of the
employees which enable them to fulfil the job requirements. Training aids the employees
in their personal and professional development and enhances their productivity.
For Tesco, the ability of an employee to complete the job given to him is very important.
Training improves the skills and productivity of the employee which increases the
productivity of the company and also the profits of the company.
2. Recruitment Practices
Recruitment and selection is an important process of Tesco. Because of the right
recruitment approach, Tesco gets the best of the talent in the market who then aids in the
growth of the company (Sheridan, 2014). New talent also motivates the existing
employees of the company and also improves their skill level. Hence, the profit of the
organisation rises.
Tesco uses internal recruitment approach which includes transfers, promotion and role
change of the employees. A promotion is considered an excellent motivator and thus
performance of the employee further improves which is good for his professional growth.
Role change of the employees results in cross skill training of the employee making him
versatile and improves his value in the market
3. Employee Relations
Employee relations should be managed very carefully as any mismanagement of the
employee relation could result in conflicts. When management and employees are not
on the same page in decision making, it turns out bad for both. But good employee
relations approach in Tesco reduces the conflicts between the management and
employees. Employees stay motivated and their performance improves because of

their satisfaction with the employer which results in increased productivity for the
employer
Evaluate the HRM practices and their application (D2)
Tesco is an organisation that has standardised all the HRM practices. For every HRM
practice, the HR managers follow a standard template that ensures consistency and continuity
in the processes. For example, Tesco has adopted for mandatory transfer of the employees in
some of its facilities. This practice is used to make the employees able to adjust to different
conditions and also to train them in different skills (Snell and Dean, 2017). Another example
of HRM practices at Tesco is the employment cessation process which follows a specific
pattern. The employee who wants to resign from company sends an official resignation mail
to his supervisor while copying his Senior Manager and HR Manager in the mail. A
discussion is scheduled by the HR manager to proceed further in which HR Manager and
Supervisor try to identify and address the reason for resignation. If they are unable to
convince the employee to take back the resignation, employee is asked to serve the 8 weeks’
notice period after which his final settlement is done and experience certificate is issued.

LO 3 Analyse internal and external factors that affect Human Resource
Management decision making, including employment legislation
Analyse the importance of employee relations in influencing HRM decision-
making (P5, M4)
Whenever a conflict arises in an organisation, it affects the production and other services of
the company. The overall productivity of the company reduces because of the conflicts.
Hence, Tesco management uses employee relations to keep better terms with the employees.
Employee relations should be managed very carefully as any mismanagement of the
employee relation could result in conflicts. When management and employees are not on the
same page in decision making, it turns out bad for both. But good employee relations
approach in Tesco reduces the conflicts between the management and employees. Employees
stay motivated and their performance improves because of their satisfaction with the
employer which results in increased productivity for the employer (Storey and Billsberry,
2015)
The conflict management at Tesco PLC is handled by collective bargaining technique which
involves the discussions with employee leaders. Whenever a conflict arises, the HRM
department constitutes a team of Senior Managers, Managers and HR Managers who contacts
with the leader or representatives of the employees and discussion are held to resolve the
conflicts.
Critically evaluate employee relations and the application of HRM practices that
inform and influence decision-making in an organisational context (D3)
Employee engagement is the key for excellent employee relations. The HRM department in
Tesco organises the activities for employee engagement. Conferences and seminars within
the organisation are conduction to enhance the participation from the employees in
organisational events. The employees in Tesco are allowed to bypass their supervisor in case
they are not satisfied with him and contact the HR manager to resolve an issue. The HR
Manager understands the needs of the employees and listens to their issues before discussing
this further with top management. This kind of arrangement by Tesco HRM department
promotes healthy employee relation in the organisation.