Tesco HRM Report: Appraisals, Recruitment, and Rewards Analysis

This report examines the human resource management (HRM) practices at Tesco, a multinational retail company. It analyzes the positive and negative aspects of performance appraisals, their impact on the psychological contract, and the recruitment and selection processes employed by the organization. The report delves into the strategic role of HRM in managing people and the workplace environment. The report outlines Tesco's approach to workforce planning, job descriptions, and both internal and external recruitment methods. It also discusses the organization's reward packages, aiming to enhance employee motivation. The report highlights how the organization conducts appraisal processes, the factors affecting it, and the importance of employee development through training and learning sessions. Overall, the report provides a detailed overview of Tesco's HRM strategies and their effectiveness in managing its workforce and achieving organizational goals.

Introduction to Human
Resource Management
& Learning talent
Development
Assessment

INTRODUCTION
Human resource management refers to important formulation which is used by the
management department of an organisation for its effectual administration of the people who
working within the firm. They can help the business of the company to gain competitive
advantages (Abdullah and Zulkifli, 2015). HRM deals with problems related to compensation,
performance management, organisation development, safety, wellness, benefits, employee
motivation and others. HRM plays a strategic role in managing people and the workplace culture
and environment. This report is related to Tesco which is a British multination groceries and
general merchandise retail company. It was founded in 1919 by Jack Cohen. It is one of the
largest retailer in the world and headquartered in Welwyn Garden City, Hertfordshire, England,
UK. This assignment will discussed about the positive and negative aspects of appraisals and the
impact of them on the psychological contract. Further it will discussed about the recruitment and
selection process that can be used by an organisation to select and hire qualified candidates.
Information about an organisation’s reward package also be defined that enhance to improve
motivation without increasing an employee’s salary.
MAIN BODY
4. Identification of the positive and negative aspects of appraisal and impact of them on the
psychological contract
Performance appraisal, it refers to a lawful review of an employee’s job execution and
overall endeavour to a firm. In Tesco, it refers to the process of analysing and determining the
performance of employees and their contribution towards the organisational growth. A
performance appraisal also referred to as a performance review, development discussion,
performance evaluation and a method by which the capabilities of employees can be documented
and evaluated. In Tesco, the management of company use performance appraisal as a
systematized process in which employees’ job performance is analysed. In relation to the
projects on which employee has worked and make their contribution to the company and for the
development of the business of the firm. It is an integral part of the wider performance
management system and is extensively used to evaluate international employees. The
management department of the company organise and conduct appraisal process after a specific
period of time to monitor the performance of employees in their work. With the help this

process, the manager of the company can analyse the contribution of employees in development
and growth of the firm. There are various factors of performance appraisal that positively
affect the management, employees as well as organization (Buettner, 2015). Improve
performance, performance appraisal mainly concentrates on making improvement on
employee's performance by determining and analysing the monitored factors like social activity
and application. In Tesco, the management department of the company conduct this process so
that they can analyse their employee’s performance. With the help of this, they can identify those
employees who are not performing well due to lack of skills. Then, the management of the
company organise learning and development sessions so that they can increase their skill and
knowledge and make contribution in the organisational success (Clark and et. al., 2016).
Promotion, it also creates positive impact on the employee growth. In Tesco, when the
management determine that which employees performing well than they promote, transferred
and rewarded to them. Motivation, performance appraisal also motivates the employees when
the employees are rewarded due to their performance than it provides motivation to them so that
they can work harder in future. This motivates them for their career growth and development.
There are some factors of performance appraisal also negatively affect the employees and
organisation. Prone to biasness, some raters may rate one calculating on the basic opinion one
gives. For example, some raters might be rated high even though they just performed well in a
single area. These kind of activities may create discrimination based on gender, religion,
appearances etc. and negatively affect the organisation policies and environment. Contrast
error, performance appraisal is mostly depend on particular standards. In Tesco, these standards
are set by the management department of company to analyse the performance of employees.
When an employee gets rated without following the modular in order to, a contrast error occurs.
Sometimes, many employees are getting high rating in their current performance based on their
past performance. This unethical standard affect negatively to the organisation's growth and
other employees also. Because they are affected by those who are not perform well in current.
Regency and Primary error is another factor that highly affect the process of appraisal in
negative manner. During the time of starting of the appraisal and at the extremity, employee
behaviour can affect the process at that time. For example, in Tesco, an employee perform well
but during the time of appraisal, there are various kind of fluctuation occur in individual
performance in form of high and low performance.

Psychological contract, it indicates to the spontaneous set of expectations of the
employment relationship as distinct from the formal and codified employment contract. In Tesco,
it refers to the concept that indicates the expectations of an employee’s perceived expectations of
what they gain from a company. Appraisal aspects affect psychological contract in both manners,
positive as well as negative. For example, when employees and candidates are hired than they
have some expectations from the organisations related to career development, personal growth,
incentives, compensation, flexible working option and various others. In Tesco, the management
of the company provide incentives, flexible working option, career development opportunities
than it positively affect the psychological contract. Sometimes, the management analyse the
performance of the employees according their past experience than it negatively affect the
expectations of new hires (Collings, Wood and Szamosi, 2018). This create negative impact on
the organisational performance as well as employees. This organisation conduct appraisal
process after a specific period of time so the firm can easily monitor the skills and knowledge or
performance of employees. If there are lack of skills, than it organise training and learning
sessions to them so that they can make improvement in their knowledge and perform better and
help in the development of company.
5. Obtain an organisations recruitment and selection policy/procedure and critically discuss the
content of this in list of best practice
Section and recruitment indicates the series and succession of activities concerning to
recruitment and selection of employable candidates and job seekers for an organisation. In
Tesco, recruitment indicates to the method of getting attention, attracting, short-listing, selecting
and appointing suitable applicants for jobs and vacant positions within the company (Cooke and
Bartram, 2015). To enhance the skilfulness of hiring, it can be recommended to the HR team of
the company that they follow the five best practices. The five practices insure flourishing
recruitment without any disruption. These practices also insure consistency and compliance in
the recruitment process.
For each and every business, it is hard to find out right staff and people to operate the
business successfully in competitive environment. Tesco make sure that every experience of its
customers is having value and highly need to right customer service staff. The main purpose of
this firm is to create value for consumers to gain their lifetime loyalty. Tesco is one of the
biggest private sector grocery company in UK. There are more than 360,000 employees are

working under it and helps in operating its business in more than 12 nations The strategy of this
company include diversifying and growing the business by global expansion. There are highly
requirement of the people of both store based and non store jobs. It required to insure is has right
number of people in the right position at right time. To do this, the firm has to follow a structured
process of recruitment and selection to get attention of candidates for both managerial and
professional roles. This process is as following:
Workforce planning refers to a process by which a company do analysis of the business
so that it can find out the future needs and requirement of people in terms of numbers, skills and
locations. In Tesco, this process help the business to identify that how this requirement can be
meet with the help of recruitment and selection. The management of the organisation, hire
qualified candidates on regular basis for both the food and non food parts of the business.
Position becomes available, this is the next step in it, the management department of the
company monitor and determine about the vacant positions at national and international level for
new hires. In Tesco, jobs are created when someone retire, resign and promoted than new jobs
are generated by the management department of this firm. It help the company to identified the
requirement of employees in different section such as managerial and operational role so that it
can design its job description according to them (Guest, 2017). In Tesco, this document develops
by the HR manager and it contains information about the post, which skills are required for the
candidates, qualifications and experience of them. It helps the company to get a skilled applicant
for the right position. Job description shows that how a job holder fit into a business. It helps in
providing a benchmark for each job in terms of responsibilities and skills. Attracting and
recruitment, It is the next step, in it the company use different ways for attracting the right
standard of applicants to apply the vacancies. Tesco advertise in different ways to get attention of
candidates. For this, the management of this company use social media, LinkedIn, Facebook,
Twitter, Instagram and various other advertising channels.
Internal recruitment, it refers to that process when the organisation hire and recruitment
candidates inside the firm in form of promotion, transfer and others. Various companies use this
process when they have a skilled employee within the firm than they posted them for a new job
role or upper level post. In Tesco, the management of company first looks at internal talent plan
to fill the vacant positions. In Tesco,, the management department of the company advertise the

post internally on internet for two weeks. This help in encouraging employees to grow
internally so that they also can shape their career growth and development.
External recruitment is another process of recruitment. In it, the firms hire or recruit
employees from outside of the firm. For this, firm provide notification through online mode,
internet and by using social media. In Tesco, the management of organisation provide
advertisement for job vacant positions through company’s website or by using advertisement or
promotional channels. For hire a candidate from external mode, the company use various
method of recruitment like job description, person specification and others for providing
information about the vacant positions and job role. so that it finds a talented and skilled
employee which help in the development of the business of the firm.
Selection, it is the last step, in Tesco, in the first phase of selection; the management of
this company make screening of the candidates by carefully monitoring the curriculum vitae. CV
help the Tesco to determine whether a candidate match the person specification for the job. If
they are able for it than the management follow other process of selection. As the candidate
passes the assessment centre than they are put in an interview. In other word, if they pass all
selection criteria than they are able to face an interview. If the candidates are perform well in
interview and fit for the job role, then manager select applicants for making contribution in the
organisational growth and development.
After selecting the employees, company organise orientation and induction program for
providing information about the rules, regulations and policies or procedure of the firm. The
management of company also conduct training and development sessions and program so that
they can provide training to the new hires and they can make improvement and increment in their
skills and knowledge according to the job role. This helps the company and its business growth
(Nieves and Segarra-Ciprés, 2015). If the firm will not provide these kinds of activities to them
they will not understand the way of working of this company and will not make proper
contribution in the development of the organisation. This negatively affect the business,
production, productivity and profit margins of the firm.
6. How can an organisations reward package be enhanced to improve motivation without
increasing an employee’s salary
A reward package involves salary and wages but may also contains some other benefits
or rewards such as accommodation, like transportation, accommodation and meals etc. Working

out a good remuneration package that will help to getting attention, retain and motivate the right
employees (Noe and et. al., 2017). In Tesco, the administration division of the company use
various ways to motivate and encourage the employees without increasing an employee’s salary.
The management involve all the employees in development, implementation and revision
sessions of rewards program. In Tesco, the management department of the company organise
and conduct training, learning, motivational and development sessions to encourage the
employees. The company conduct this kind of session to make improvement in the skills and
knowledge of those employees who perform well and those also there are lack of skills and
knowledge. So that they can make improvement in their skills and lean or gain information out
new things related to their job which is beneficial fro their personal and professional
development as well as company. The company send those employees who perform better for
outside training so that they can get a chance of visit and also learn about new things and make
improvement in their skills. Involvement of all the human resource will increase the interaction
among workers and administration in context of reward process. It will also ensure that workers
and senior management are on board in context of reward system. Another way is that making
reward system fair. When the organisation organise rewards session, then it conduct appraisal
process to monitor the performance of employees. In it, they use various kind of approaches like
behavioural, comparative and others. In Tesco, the performance of the employees monitor on the
basis of appraisal in which the management of the firm provide rating and grade according the
employee’s performance. If the company follow fair process of rewards, then it can encourage its
employees to perform better and making contribution in the organisational growth. For example,
in various companies, the management monitor the performance on the basis of their past work
and performance. This is unethical and negatively affects the reinforcement system. When the
workers follow the remuneration system in form of clarity and fairness then they will be work
more effectively to obtain reward. Rewards must be provided according to the pre monitored
polices and on the basis of employees performance. If the organisation make fairness in its
rewards system, than it positively affect the employees as well as company. Because when the
employees are rewarded, they feel motivated and doing work with more effectiveness and in
efficient manner so that in future the employees again also rewarded by the management for their
good work.

Reward teamwork and cooperation is another way to encourage employees in an
organisation. Team based incentives is more effective to motivate employees and to be more the
employees are working in a team for achieving a common organisational goal they work by
using their all effort an effectiveness. If the team perform well, then all the team members are
rewarded by the management for their good work and performance. This could have a significant
impact on cooperation, employee cohesiveness and the firm’s bottom line (Popescu, Comanescu
and Sabie, 2016). In an organisation, the management of the company can influence the
employees by offer financial rewards, non monetary rewards and recognition. In Tesco, the
management can motivate the employees by providing them reward in financial and monetary
term like gift incentives, compensatory amount and others. This also encourages employees to
work effectively and helps in the development of the firm’s business (Wilton, 2016).
By providing extra vacations, gifts, meal voutures are some other ways that can be used by the
organisations to motivates and encourage employees without increasing their salary package. If
the firm offer these kind of rewards than the employees can spend the time with family and they
can come out from the organisational environment. It provides them relaxation and encourages
them. So that they can perform better in their working area and help in the growth and
development of the company and increase profit and enhance productivity of the organisation.
CONCLUSION
From the above information, it can be concluded that performance appraisal is an
important technique to monitor the performance of employees. So that the management of the
company can analyse the performance of its employees and rewarded them so that they can feel
motivated and help in the organisational growth and evelopemnt. In this report, the positive and
negative aspects of appraisals are defined with the impact of these aspects on psychological
contract. Recruitment and selection process is also described briefly that how they help in
choosing and selecting qualified candidates for the vacant position. Recruitment and selection
policy of Tesco is defined in the report. Reward system and package is explained that how it help
in enhancing or improving motivation without increasing salary of employees.

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