TESCO PLC Human Resource Management: Challenges and Solutions Report

This report provides an in-depth analysis of the Human Resource Management (HRM) practices at TESCO PLC, a leading global retailer. It begins with an overview of TESCO's vision, mission, employee structure, and size, highlighting the company's significant market presence and diverse workfor...Read More

Human Resource
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
1. DESCRIPTION OF THE TESCO PLC.......................................................................................1
1.1 Vision and Mission...............................................................................................................2
1.2 Types of employees and employees size..............................................................................2
2. ROLE OF HUMAN RESOURCE MANAGEMENT.................................................................3
3. CHALLENGES FACED BY HUMAN RESOURCE MANAGEMENT IN TESCO PLC.......5
4. RECOMMENDATION ON HOW HUMAN RESOURCE MANAGEMENT CAN BETTER
MANAGE SUCH CHALLENGES.................................................................................................7
Average number of employees at TESCO in the United Kingdom (UK)* from 2012 to 2017..9
SUMMARY...................................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Human resource is an important part of an organisation. Human resource management is
divided into two parts: Human resource and management. Here, human resource refers people
and management refers to effective allocation of people in an organisation. Hence, human
resource management is a process in which employees are effectively and efficiently allocate in
a firm, so that firm’s objectives can be accomplished easily. This process helps the organisation
to receive their goals effectively. Present report describes the human resource management of
TESCO PLC and it explains the type, vision, mission, employees of the institution so that
effective management can be done. Furthermore, it also describes the role of human resource
management in terms of planning, coordinating. facilitating. staffing and auditing Sparrow,
Brewster & Chung, (2016).
In the third phase, report investigate the challenges which are faced by the human
resource management of TESCO PLC in terms of globalisation, managing change and human
resource development. At last, report includes recommendation on how human resource
management can better manage globalisation, changes and human resource development in the
TESCO PLC organisation.
1. DESCRIPTION OF THE TESCO PLC
TESCO PLC is a public limited establishment also considered as the world’s third largest
retailer institution. It is founded in 1919 and the founder of the institution was Jack Cohen. The
organization established their headquarters in TESCO House Shire Park Kestrel Way, Welwyn
Garden City Hertfordshire, and England. It establishes 6553 stores in 2017. In 2017, the
operating income of TESCO is £1,280 billion. It has established their stores in 14 countries like
Asia, Europe and North America, Malaysia, the Republic Ireland and Thailand. In UK, it takes
30% market shares and known as world best grocery market Storey, (2014). The company
provides various kind of products such as clothing, electronics items, financial services,
telecommunication etc.
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1.1 Vision and Mission
TESCO set their vision to be served their most highly valued products to the customers,
communities. To increase growth of the company, they try to maintain their loyal staff,
shareholders. They also try to use innovative and modern techniques so that they apply their
skills and make their position more effectively in a global market. But company also set their
mission that they always try to create value for the customers so that they earn loyalty from
them for a long period.
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1.2 Types of employees and employees size
There are 10 members in Board of directors in the institution and they also make changes
in the structure during financial year. These changes include appointment of chairman, CEO and
new Chief Financial Officer. As per the above table, TESCO's structure is divided into five
committees and 11 members are appointed as company's executive committee which was lead by
Group chief executive.
As per the above chart, it has been described that the company has large size of the
business. In the store level, it is divided into four levels. All level are report to the senior level
management. In this way, TESCO PLC gives large employment opportunity to the people at
worldwide level. In addition to this, by giving employment company also increases the
capabilities and enhance their profitability.
2. ROLE OF HUMAN RESOURCE MANAGEMENT
Human resource management is an important managerial function which mainly concern
on hiring, motivating and maintaining the right people in an organisation. To manage the human
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resource in an administration, HR should maintain the effective relationship between employers
and employees and achieve their administration goals Renwick, Redman & Maguire, (2013).
HR Planning- Human resource planning includes setting an effective plan so that HR can
use right person in a right job. To maintaining the HR planning TESCO applied three principal
for successful working, they are:
Personal management and HR management- Every institution needs right person in
workplace so that troupe can make their place in a competitive market. So that they needs to
manage the effective training programmes for their employees so that they can work more
effectively. In this way, TESCO perform four main activities such as maintenance, motivation,
acquisition and development activity. In maintenance, TESCO make commitment to the
employees so that they work effectively to reach the goal. By flowing motivation activity,
TESCO use this activity so that firm will give satisfaction to the employees for their job and also
increases their performance by giving increment, promotion, bonus for the employees.
TESCO also follows the acquisition activity, which is started from recruitment and
selection of the employees. By making development in the form of training and providing career
guidance to the employees, organisation also make development for the employees.
Recruitment, selection and retention- Firm also make effective enlisting techniques so
that they can increase their capabilities and also enhance their profitability. While making
recruitment,Firm identify the process criteria, end product so that they can hire right person in a
right place.
Coordination- While managing the human resource, TESCO PLC also makes
coordination between employer and employees. They always try to make effective coordination
activity among different departments, so that all the departments will effectively work as per the
pre-determined plan. To achieve their vision and mission and make their growth by using
innovative methods, institution maintain the proper coordination between the work and
employees. By PESTLE analysis it determine the external changes such as political, technical,
economical, environmental and socio-cultural changes. In addition to this establishment analysis
the strength, weakness, opportunity and threat, as per such analysis company make effective
coordination between all the departments Purce, (2014). TESCO operates in worldwide level and
expand their business enterprises rapidly, to maintain their market position, institution used
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different leadership style such as autocratic, participative, democratic leadership style. By use of
such leadership style and uses of different model, they makes effective coordination inat their
workplace. For example: By using effective coordinating techniques, they found that their
market share increases with 30% in 2017 as compare to 2012 which was only 12% .
Facilitating- To manage the human resource in a firm, TESCO provide various types of
facility to their employees. Establishment provides staff housing and voluntary benefits to their
employees. In the last month, TESCO declared plans to make housing facility so that affordable
accommodation facility is provided to the staff members. Companionship also give the
opportunities to the staff members to give their feedback Nickson, (2013). So that as per the
feedback, institution gives extra benefits like Christmas benefits to them. Over the Christmas
period, employees get benefits like discount vouchers in their salary slips. In this way, they gives
various facilities to their staff members so that institution can manage their workers for
accomplishing their future goals. TESCO also encourages their staff members to take the share
in the business via employer share schemes. They also provide medical facility or health plan. So
as per the facility organisation motivates its employees, so that they can perform better. Firm
also provides pension, holiday which is 20 days standard, company cars etc. to their employees.
Staffing- It includes filling position in the organisation. It is done by the administration by
using two methods recruitment and selection. TESCO follow the staffing process so that
company can recruit on a regular basis for food and non-food parts of the business. To recruit the
person companionship establishes an effective workforce planning between managerial and non-
managerial level. For example: In 2008, TESCO found that to form stable position in a market
institution want 4000 new manager in an organisation. To make effective staffing of an
employees, institution needs to focus on time and flexibility to meet the demand for the staff
members. TESCO also focus in 'Talent Planning' strategy for making selection of employees. In
this way, by using job description and person’s specification, TESCO PLC manage the human
resources for accomplishing their future goals.
Auditing- Auditing is also a main part of effective human resource management. Human
resource audit is a method to determining the current policies, procedures, documentation by
which troupe can identify the areas of improvement in an organisation Marchington, Wilkinson,
Donnelly & Kynigho, (2016). TESCO PLC makes various kinds of strategies and also prepares
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the documents so that companionship can determine the actual position of the employees. So that
they makes review of HR hiring, benefits, compensation, job description, forms and personnel
file so that they can manage the human resources effectively.
3. CHALLENGES FACED BY HUMAN RESOURCE MANAGEMENT IN
TESCO PLC
Human Resource management is a process of managing the employees in a right place as
per their skills and capabilities. But there are various challenges which are faced by the human
resource management. As per the present case, Globalisation, managing change and human
resource development make both the positive and negative impact in management of human in
TESCO PLC.
Globalisation- Globalisation is a process in which business can switch their operational
activity into small level to wide level. It includes diversity in culture, products, services and ideas
so that it makes great impact on the company’s management process of their employees. In this
stage, human resources can help the managers to adopt wide changes by increasing their level of
performance. Globalisation is the main challenges which are faced by the HR of TESCO PLC. In
the globalisation conditions, many companies need to diversify their business activity to
increases their profitability. In this race, TESCO also face challenges to increase their business
size so that fellowship can interact with different customers and stakeholders from diverse
culture, aspect etc. TESCO also make focus on to hire employees from equal diverse
backgrounds. Firm also face the problems to hiring employees, so that they can make effective
communication with diversified people in a wide range Chelladurai & Kerwin,(2017).
Globalisation also impact on HR managers of TESCO PLC to push for professional
development. In this, TESCO face the problem to provide their employee’s career related goals.
TESCO also face the challenges to provide a range of skills and competencies for their
employees so that they can perform better to win the globalisation situation. Globalisation also
makes impact of employee’s performance level, so that to cope-up with the changes of
technologies, organisation face the training problems for their employees in a large level. Hence,
Globalisation makes positive as well as negative impact on firm's operational activity and
management of human resources too Hoque, (2013).
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Managing Change of HR role- To manage the changes in organisation is also a challenge
which faced by the HR of the TESCO PLC. Due to change in an organisation, it creates the
satisfaction between the employees behaviour . For example: In 2014 TESCO face the problem
of technical changes which make anger, battle and depression in employee’s behaviour. People
believe that change make negative of business activity because it creates fear of unknown things.
Changes are uncertain so that Tesco face the difficulty either to accept the alteration or reject the
alteration. For example: In 2015, TESCO face the difficulty such as lack of communication and
competence due to use of internet facility. So that institution try to overcome such fear by
managing the effective human resource which has sufficient knowledge of internet, so that
employers can interact easily with their employees and customers Budhwar & Debrah, (2013).
Human Resource Development- Human resource development is a fundamental
framework which helps to create personal and organisational skills, knowledge etc. TESCO PLC
also face challenges related to the development of human resources. Human resource
development includes motivation, training & development. Organisational learning, coaching &
mentoring and talent management career development etc. All this factors make an impact on
company's operational activity. TESCO faces the problems to provide effective training to their
employees. For example: TESCO believes that if they have well trained workers in the
organisation, then it make positive impact of the business that customers are more confident in
the competence and knowledge staff they deal with.
Hence, all the challenges like globalization, change management and human resource
development are faced by the TESCO PLC. All those challenges make the great impact of
managing the human resources so that company can achieve their goals Fee, (2014).
4. RECOMMENDATION ON HOW HUMAN RESOURCE
MANAGEMENT CAN BETTER MANAGE SUCH CHALLENGES
Human resources are essential for every business, so that it is the main role of HR
manager to allocate human in an appropriate manner in an organisation. As per the above
following challenges like globalisation, changing management and human resource development
make great impact on TESCO operational activity Brewster, Houldsworth, Sparrow & Vernon,
(2016). So that HR manager should adopt various strategies to overcome such challenges, which
are as follows:
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Globalisation- Globalisation gives an opportunities to the organisation by which they
deal with various kinds of diversified strategies, cultures, background etc. So that globalisation
make great impact in business operation. TESCO PLC also faces global diversification difficulty,
so that to overcome such troubles company should manage their human resources by using
following strategies: TESCO should focus in a community global business. For example: To
make use of diversification in their activities company considered Corporate Social
Responsibility of its operations.
 Institution also make approaches and create various kinds of opportunities for the million
of peoples around the world Brewster, Houldsworth, Sparrow & Vernon, (2016)
 They should try to increase the staff numbers by 20000 over two years.
 TESCO also develop various training programmes so that company can manage their
resources effectively to fulfilling the vision. By adapting the cultural diversity, new changes and hiring different employees in
different state help to make effective communication with the customers.
Managing change of HR role- Change in management also create the problem is their
growth. These sudden changes make negative impact on the employee’s attitude and behaviour.
For example: Fear of unknown techniques, fear of redundancy, fear of structural displacement,
failure, lack of competence, effective communication, wrong timing etc., make negative impact
on staff's attitude. So that there is various recommendations which help the TESCO to manage
the human resource in such changes condition: TESCO institution should hire HR as a change
agent which provide structured framework for change.
 Company should assign top direction with other employees Brewster & Hegewisch,
(2017).
 It also identify and maintain workable change administration processes.
 They also manage the conflict and projects.
 They must provide effective training and development programs so that employees can
work as per their developed skills and capabilities.
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 They must adopt various innovative techniques so that as per the new techniques
company can hire those person who have sufficient knowledge of such techniques.
Human Resource Development- Human resource development is a process of assessing
the post and as per the desire knowledge of job people are filled in them. It includes analysis of
job requirement and people who are suitable for the job. TESCO face improvement challenges of
human resources, so that there are various ways that institution can create their human resources
effectively, which are as follow:
 Establishment should give effective training to their employer so that they can interact
with customers more effectively.
 By giving motivation such as providing increment, bonus etc. also helps to develop the
human resource in a institution Armstrong, M., & Taylor, (2014).
 Employee engagement strategies also used by the institution so that employees freely
give their opinion and view in the decision-making process.
 By getting feedback to the employees also beneficial for the troupe to make effective
development of the human resources in an organisation.
Hence, as per above recommendation TESCO can achieve their goals by managing the
human resources effectively. They also adopt such challenges and it makes positive impact on
their staff and operational activity. For example: In 2012, TESCO PLC expands their stores and
operates in worldwide level so that institution adopt the diversification of various cultures,
background across the world. As a result TESCO owns 30% UK market share in 2016 as
compare to 2012 where troupe had only 13% of market share in their possession.
Average number of employees at TESCO in the United Kingdom (UK)* from 2012 to 2017
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As per the above table, it is clear that TESCO adopt challenges and make effective efforts
which make positive results in employee’s numbers. In 2012 the total number of employees is
300373 which will be increases by 327601 in 2017. This highest scale of employees shows that
company use effective strategies to manage their resources, Anderson, (2013).
SUMMARY
As per the above detailed information, it has been summarized that human resource
management is an effective managerial tool to allocate the person in such a place where the
demand of employees is higher. It includes all those activities which motivates the employees so
that they can work in a better manner. The present report discovered the TESCO and their
management techniques so that company can utilize the human resource effectively for
accomplishment of their future goals. In the next part, it also described the role of human
resource to manage the staff members by making effective planning, coordinating, facilitating,
staffing and auditing. Furthermore, it also explained the challenges such as globalisation,
changing management and HR development which are faced by the TESCO institution and at
last it also provide recommendation for the institution, so that company can overcome such
challenges effectively Alfes, Shantz, Truss & Soane, (2013).
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REFERENCES
Journals and Books
Alfes, K., Shantz, A. D., Truss, C., & Soane, E. C. (2013). The link between perceived human
resource management practices, engagement and employee behaviour: a
moderated mediation model. The international journal of human resource
management. 24(2). 330-351.
Anderson, V. (2013). Research methods in human resource management: investigating a
business issue. Kogan Page Publishers.
Armstrong, M., & Taylor, S. (2014). Armstrong's handbook of human resource management
practice. Kogan Page Publishers.
Brewster, C., & Hegewisch, A. (Eds.). (2017). Policy and practice in European human resource
management: The Price Waterhouse Cranfield survey. Taylor & Francis.
Brewster, C., Houldsworth, E., Sparrow, P., & Vernon, G. (2016). International human resource
management. Kogan Page Publishers.
Brewster, C., Mayrhofer, W., & Morley, M. (Eds.). (2016). New Challenges for European
Resource Management. Springer.
Budhwar, P. S., & Debrah, Y. A. (Eds.). (2013). Human resource management in developing
countries. Routledge.
Chelladurai, P., & Kerwin, S. (2017). Human resource management in sport and recreation.
Human Kinetics.
Fee, M. C. (2014). Human resources management.
Hoque, K. (2013). Human resource management in the hotel industry: Strategy, innovation and
performance. Routledge.
Marchington, M., Wilkinson, A., Donnelly, R., & Kynighou, A. (2016). Human resource
management at work. Kogan Page Publishers.
Nickson, D. (2013). Human resource management for hospitality, tourism and events.
Routledge.
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Purce, J. (2014). The impact of corporate strategy on human resource management. New
Perspectives on Human Resource Management (Routledge Revivals). 67.
Renwick, D. W., Redman, T., & Maguire, S. (2013). Green human resource management: A
review and research agenda. International Journal of Management Reviews.
15(1). 1-14.
Sparrow, P., Brewster, C., & Chung, C. (2016). Globalizing human resource management.
Routledge.
Storey, J. (2014). New Perspectives on Human Resource Management (Routledge Revivals).
Routledge.
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