An In-depth Project Report on Human Resource Management at Tesco

This project report provides a comprehensive analysis of Human Resource Management (HRM) at Tesco, a multinational grocery company in the United Kingdom. It explores various aspects of HRM, including recruitment, training, employee relations, and performance management. The report includes external analysis using PESTLE to understand the labor market and internal analysis using SWOT to assess turnover, stability, and retention. It critically evaluates Tesco's recruitment process, selection methods, and the benefits of its development and training plans. The report also discusses reward management, flexible working practices, performance management, employee relations, ethical and social responsibilities, and the impact of trade unions. Furthermore, it addresses issues arising during employee induction and socialization, offering rationale for effective solutions. The analysis aims to provide insights into how Tesco manages its human resources to achieve its organizational goals, with a focus on continuous improvement and compliance with employment law.

Human Resource Management
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Summary
This project report is based on Human resource management of Tesco which is multinational
grocery company in the United Kingdom. It is one of largest retailer company in all around the
world that provide good quality products and services to their foreign as well as domestic
customers.
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Table of Contents
Summary........................................................................................................................................2
Introduction....................................................................................................................................4
LO1..................................................................................................................................................5
1.1 Give a brief introduction to your chosen organisation, including a definition of HRM
(P1.1)...........................................................................................................................................5
1.2 Discuss the type of approach undertaken by your organisation, such as: ‘Best fit'
versus ‘Best practice'; hard and soft models (P1.2)................................................................6
1.3 Undertake external analysis using a PESTLE in order to seek the type of labor
market the organisation exists in their labor markets trends (P1.3)....................................8
1.4 Undertake internal analysis in order to confirm the internal labour market, with
consideration given to turnover, stability, and retention. (P1.4, M1)...................................9
1.5 Critically evaluate the strengths and weaknesses of the organisation's recruitment
process, such as internal versus external recruitment, their use of job description,
personal specification and competency frameworks (P1.5, D1)..........................................10
1.6 Evaluate the strengths and weaknesses of the organisation's main method of
selection. Here you may want to consider key criteria for gaining a position such as
grading grids (P1.6, M2).........................................................................................................11
LO2............................................................................................................................................12
2.1 identify and explain the benefits of the organisation's development and training plan,
including how HR differentiates to suit different people/roles training needs. Also discuss
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how HR evaluates the success/failure of their implemented training methods (P2.1, M3)
...................................................................................................................................................12
2.2 Discuss methods of reward management such as extrinsic and intrinsic rewards from
the employer. Here you are required to link them to the type of motivational theory and
reward implemented within the organisation (P2.2)............................................................13
2.3 Critically evaluate the benefits to the employee of any success/failure of the
organisation to offer flexible working practices in regard to financial gain, the
organisation's structural design and any functional flexibility which may exist (P2.3, D2)
...................................................................................................................................................14
2.4 Discuss the organisation's use of performance management, including monitoring of
achievements through models such as key performance indicators and the reward system
in place (P2.4)...........................................................................................................................15
LO3................................................................................................................................................16
3.1 Evaluate how the organisation maintains good employee relations and engagement
and any strategies they have in place for continuous improvement, with consideration to
employment law such as equality, data protection, health and safety, redundancy,
dismissal, and employment contracts (P3.1 M4)...................................................................16
3.2 Explain whether the organisation considered ethical and social responsibilities and
how this impacts on HRM (P3.2)............................................................................................17
3.3 Critically analyse the role of trade unions and any workplace representatives at both
local and national level and how they impact upon the actions of HRM within the
organisation (P3.3, D3)............................................................................................................18
LO4................................................................................................................................................19
4.1 Using example of organisational practices, discuss issues which arise in the
organisation when new employees undertake induction and socialisation. (P7)...............19
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M5 Provide rationale for how such issues can be effectively addressed.............................20
Conclusion....................................................................................................................................21
References.....................................................................................................................................22
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Introduction
Human resource is a most important department of the company as it assists in accomplishing set
target and objectives in most effective and suitable manner. Every company needs to give full
attention to human resource management because this department help to retain employees with
the association for the long time period. HR manager operates so many practices within the
organisation such as recruitment, training, selection, development, planning and much more
through which employee’s efficiency level increase. In today’s time, it is very important for the
business organisation to recruit highly skilled and talented employees who can perform in an
effective way. This project report is based on Tesco which is largest retailer company in the UK.
Various scopes, as well as the purpose of HRM department, has been discussed in this report.
Also, demonstrated internal and external factors that can influence the decision-making process
of HRM and apply some HRM activities in the context of Tesco.
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LO1
1.1 Give a brief introduction to your chosen organisation, including a definition of HRM
(P1.1)
Human resource management is one which operates selection, recruitment, training, and
development for better running of the organisation.
Tesco is one of most reputed as well as the largest company that provides books, electronics,
toys, software, petrol, clothing, furniture and many more services to its customers (Akrani,
2011). There are around 476,000 employees who assist the organisation to deliver high-quality
goods and services to satisfy needs of its customers. This company wants to increase its market
presence by covering large market share at a global scale. Tesco has main objectives to satisfy
demands and wants of its customers by giving them high-quality products and services at
reasonable prices. Tesco retains its highly skilled employees as well as also maintain a healthy
relationship with its employees to achieve high growth (Akrani, 2011).
It is one of the most successful brands in all around the world because it gives high focus to its
human resource management who aid in accomplishing set target in the certain time period. This
company divides its business practices into different departments for attaining the better result.
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1.2 Discuss the type of approach undertaken by your organisation, such as: ‘Best fit' versus
‘Best practice'; hard and soft models (P1.2)
There are so many different approaches to human resource management that assist Tesco in
achieving organisational goals and objectives (Armstrong and Taylor, 2014). Best practice and
best fit are some of most essential approaches to HRM which help in operating business
practices in a well-planned manner. Both the approaches are completely different from each
other that are explained as under:
Best Fit Best practice
 The company should relate its
objectives to a reward system for motivating
employees. This approach gives high focus to
its reward process.
 With the help of this approach, the
company can gain huge competitive benefits
at global scale.
 As per this approach, the company
should include strategy as well as reward plan
in its HR policies to attain the better result.
 In this method, HR manager uses so
many methods and do commitments to his
employees for encouraging and motivating
them towards goals.
Hence, all the above-mentioned approaches are beneficial to HRM in operating business
practices which are successfully implemented by Tesco.
Apart from this, there are several models of HR such as hard and soft that is used to attain the
desired target. Both models are explained as under:
Soft HRM: In this model, the company gives high focus to its employees needs to satisfy them
and top manager provide a good working environment to them so that they can make more
efforts to achieve organisational goals and objectives (Armstrong and Taylor, 2014).
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Hard HRM: In this model, top managers do not make any communication with their
subordinates that is why this model is considered as less effective in management. Organisation
appraises or promotes its staff member according to their behaviour instead of efforts.
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1.3 Undertake external analysis using a PESTLE in order to seek the type of labor market
the organisation exists in their labor markets trends (P1.3)
Pestle analysis:
Political Change in EU initiatives, transport policy,
Immigration policies related to labour
‘migrants’ etc. affect the labour market and
organisation profitability.
Economic Increasing rate of competition, economic
crises, emerging economies impact the labour
market because of this reason finance of
company get affected.
Social Ageing of Society, Continuous demographic
change impact on the workforce that affect
labour market of the country.
Technological New technology and advance devices lead to
new demand for the task, high skills
employees and business reallocation. The
company require new workers who have high
skills and ability.
Legal Changes in legislation, policies, labour market
entry, internal market rules and changes in
environmental protection regulation affect the
labour market condition.
Environmental Increasing rate of sustainability in the
economy, environmental laws, regulation
related to particular material impact workflow
of company and labour market condition
(Alfes, et. al., 2013).
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1.4 Undertake internal analysis in order to confirm the internal labour market, with
consideration given to turnover, stability, and retention. (P1.4, M1)
SWOT Analysis:
Strengths:
Greater global presence
Strong portfolio strategy
Good online operations
Weakness:
Reduce employees morale
Low financial performance
Opportunities:
Enhance market share through effective
strategy
Business expansion by using high technology
Threats:
Fluctuation in currency
Inability of leadership
By taking help of SWOT Analysis Company can evaluate internal labour market by analysing
stability, retention and turnover of the employees. HR manager should analyse a total number of
workers in the company for analysing labour turnover effectively, by doing swot analysis of the
Tesco. Competition arises in the internal labour market from current practices in the form of
promotion as well as job payment (Van Aken and Berends, 2017).
The organisation should make efforts to retain highly skilled employees at the workplace by
satisfying their needs and demands. The company can also determine total labour turnover by
taking help of terminated employee’s rate. Every company treats human resources as assets
because they control and manage entire management function. Internal analysis assists company
to evaluate the current condition of retention, stability and turnover of employees, so that
manager can take corrective action accordingly. The organisation labour’s allocation and pricing
are governed by specific administrative rules and procedures in the internal labour market.
Hence, it is highly essential for HR managers to do an internal analysis to identify current
turnover, stability and retain of the company. Tesco uses various regulatory and legal
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frameworks while developing any strategy or policy for retaining employees with the
association, otherwise, the company can suffer from financial loss (Van Aken and Berends,
2017).
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