Tesco HRM Report: Recruitment, Selection, and HR Practices 2018/19

This report provides an overview of Human Resource Management (HRM) practices at Tesco, a multinational grocery and merchandise chain. It emphasizes the significance of effective HRM for organizational success, particularly in recruitment and selection. Tesco's approach to recruitment, which includes internal hiring, job descriptions, and competitive salary packages, is examined. The report also discusses the purpose and scope of recruitment and selection in achieving organizational objectives, highlighting the strengths and weaknesses of Tesco's internal recruitment approach. The report concludes by emphasizing the importance of strategic HRM practices in enhancing employee performance and contributing to Tesco's overall success. Desklib provides access to similar solved assignments for students.

Running Head: HRM
Human Resource Management
Report
System04104
6/24/2019
STUDENT NAME: PLAMENA DONCHEVA
STUDENT ID: S0278000

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1. Introduction
Human resource is the key of any organisational success. Without proper management of
human resources organisation cannot achieve their target and objective. The effective and
proper practice of human resource in any organisation determines the way of success and
provides a competitive advantage over the competitors. HRM should be designed in such a
way that maximized the employee performance in an organisation in order to achieve the
employer’s strategic objective. In simple word, recruitment is the process of choosing right
people, at the right time, and for the right place1.
Tesco is known for its best HRM practices. Tesco uses the most effective and best
methodology of selecting, hiring, and engaging people in different work in the organisation.
To recruitment and selection procedure, it is required for the organisation to prepare in
advance, prepare a specific plan for the recruiting and selecting people, and also forecast the
number of employees for the vacant posts in the organisation. However, Tesco is known for
its best recruitment and selection procedure in the world. This report has been prepared on the
various HRM practices of Tesco. This report shows the recruitment and selection procedure
of Tesco. This report also shows how Tesco fulfil its vacant posts and places in the
organisation from internal and external sources of recruitment2.
The purpose of this report is to highlight different HRM practices in Tesco and identify the
various practices and procedures that Tesco adopted in recruiting people. This report also
helps to understand about the various methodologies and process of recruitment and selection
in the organisation. This report also discussed strategic HRM practices that add value to
Tesco. The strategic human resource management system of the organisation not only helps
to HR department of the organisation rather it also helps the employees to deal with different
situation and improve their work performance in the organisation.
1 D. Kleine, Light, A., and M. J. Montero, ‘Signifiers of the life we value?–considering human development,
technologies and Fair Trade from the perspective of the capabilities approach’, Information Technology for
Development, vol. 18, no. 1, 2016, pp. 42-60.
2R. S. Schuler, Jackson, S. E., and I. Tarique, ‘Global talent management and global talent challenges: Strategic
opportunities for IHRM’, Journal of World Business, vol. 46, no. 4, 2011, pp. 506-516.

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2. Overview of Company
Tesco is the multinational chain of grocery and general merchandise. Tesco is operating its
business in UK. The company was founded by Jack Cohem in Hackney in 1919 in London.
Tesco is known for its large number of stores and retail business in UK but now Tesco is
focusing on increasing its number of stores in all around the world. The company was first
founded by a group of market stalls to help the customers and fulfil their demands under a
roof. However, it was renamed in 1924 as ‘Tesco’. However, Tesco is operating its business
all across the world including Europe, Asia, North America, Africa etc. Tesco is operating its
business more than 6000 retail stores across the UK and in other countries. Apart from this,
more than 460,000 employees are working in the company3. Tesco is dealing in various
products that are available in its supermarket, hypermarket, superstores, and convenience
shops. Tesco has large number of subsidiary companies like Tesco Bank, Tesco Ireland, and
Tesco Mobile etc. Tesco has 28.4% market share in the UK and it is also operating its
business Ireland, Hungary and Thailand. The company generate more than 57.49 million
Euros and its net income is more than 1208 million Euros per year, while the operating
income of the company is 1644 million Euros. Tesco is known for its large human resource
management capabilities and techniques. The methodologies of Tesco in recruiting and
selecting people are one of the best methodologies to recruit and select people for the
organisation4.
3. HR practices in the Tesco
3.1 Recruitment and Selection
Recruitment is the methodologies of inviting the most eligible and skilled people for the
organisation and provide them employment opportunity in the organisation. For any
organisation, it is important for the organisation to recruit most eligible person thus they can
perform their best in the organisation. To fulfil the vacant post in the organisation, it is
essential for the organisation to prepare a plan for staffing and recruiting people in advance
3 S. Venkateshan, ‘HR Practices in a Rapid Growth Environment’, NHRD Network Journal, vol. 3, no. 3, 2010,
pp. 33-39.
4 B. Z. Albuoul, ‘Management Practice’, International Journal of Contemporary Research and Review, vol. 8,
no. 10, 2017, pp. 11-23.

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and that matches the number of vacant post in the organisation. It means that organisation
should focuses on recruiting the right candidate for the right post5.
3.2 Approaches of Recruitment and Selection in Tesco
The approach of Tesco towards its employees is most crucial as it focuses on resource centric
approach and generally focuses to consider its employees grievances first. Tesco is known for
providing best human resource facilities to its employees and during the recruitment and
selection process it apply all the possible techniques and methodologies that helps to recruit
right people in the organisation. The HR department ensures that the organisation can be able
to maximize its Return on investment (ROI) on the resources and care about the proper
development and training of these employees in the organisation6. The various approaches
that Tesco consider during the recruitment and selection process are as follow:
Hiring from internal source: The first and most important approach while recruiting and
selection of people for Tesco is recruiting from internal sources. Tesco generally looks to
recruit people from the organisation rather than external sources7. If people are not available
to recruit for the vacant post in the organisation then Tesco goes for external recruitment.
Otherwise the most preferable priority of the organisation is to hire people within the
organisation, reduce the cost of selection and recruitment, and it also save the time and
money of training costs because people already knows and aware of the organisational
process and work procedure.
Effective Job Description: Tesco is offering a good working environment to its employees
that attract them towards the organisation. For example, Tesco believe in develop an accurate
job descriptions before recruitment process for the each job that it offers to its employees.
Apart from this, Tesco mentioned in the job descriptions that what are the requirements for
the job such as key skills, personality attributes, qualifications, and experience that is needed
to accomplish the task8.
5 Pritchard, K. ‘Using employee surveys to attract and retain the best talent’, Strategic HR Review, vol. 13, no. 2,
214, pp. 59-62.
6 S. Johnson, et.al., ‘Tesco Bank Wellbeing Case Study. In WELL-BEING ‘, Palgrave Macmillan, vol. 4, no. 8,
2018, pp. 288-296.
7 A. Gopalia, ‘Effectiveness of online recruitment and selection process: a case of Tesco’, U.K., Cambridge
university press, 2017.

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Higher Salary Packages for external sources candidates: Tesco believe that a higher
salary package will attract the people towards the Tesco jobs. Therefore, the main approach
of the organisation is to offer good salary package to the job seekers, thus they can be easily
attracted towards the organisational goals and objectives. High salary package is the best
motivator in the organisation as it attracts large number of people in the organisation9.
Apart from these, approaches of Tesco, the main approach of the company is to hire those
competent people who can help the organisation to achieve its objective in the organisation.
This is the main approach while recruiting and selecting people in Tesco.
3.3 Purpose and scope of recruitment and selection in order to achieve
organisational objective
The main purpose behind recruiting and selection people in the organisation to full-fill the
organisational gaols with accurate number of employees. Tesco is generally recruiting people
from the organisation. It means large numbers of people are recruited from internal sources
rather than external sources. However, if the number of people in the organisation is not
available for recruitment and selection process, then it exposes the organisational requirement
to its websites and other job portals to fulfil its requirement. The major purpose of recruiting
people from the internal sources is to deduct the cost of recruitment and hire the most loyal
customers who are already known for the organisation. It also helps the organisation to
reduce the training cost because people who are already working in Tesco generally aware
about all the organisational process and work. Hiring people from internal sources not only
reduce the cost rather it provides best candidate for the organisation who is loyal to the
organisation. Apart from this, hiring people from internal sources increase the ROI of the
organisation on the human resources10.
8 V. Vaiman, and J. Holden, ‘Talent management in central and Eastern Europe’, Global talent
management, vol. 4, no. 3, 2014, p. 178.
9 Y. Xie and Allen, C. ‘Information technologies in retail supply chains: a comparison of Tesco and
Asda’, International Journal of Business Performance and Supply Chain Modelling, vol. 5, no. 1, 2013, pp. 46-
62.
10 U. Nwagbara, ‘Managing Organizational Change: Leadership, Tesco, and Leahy's Resignation’, E-Journal of
Organizational Learning and Leadership, vol. 9, no.1, 2010, pp. 56-79.

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The organisation wants to recruit best candidates and employees for the organisation who can
contribute in the success of the organisation. Tesco generally depends on its organisational
sources for recruitment and the major purpose behind this is to cut the recruitment cost and
improve the efficiency of the organisation by hiring experienced and skilled people for the
organisation. Recruitment of people is one of the most important phases of every organisation
and every organisation is looking for hiring best employees in the organisation. The hiring of
employees from internally helps the organisation to easily assess the culture and behaviour of
the person, which is required for the new job position. Hiring wrong employees in the
organisation may lead to heavy costs in the future. Therefore, faith of Tesco on its own
employees to work would be beneficial for the company11.
However, the other purpose of recruiting people from internal sources is to maintain its
reputation among its employees. Hiring people from internal sources will motivate the other
employees to perform better, and it will be beneficial for the company that other employees
will perform better because they expect their own growth and development in the
organisation.
3.4 Strength and weakness of different approaches in recruitment and selection
Tesco uses different approach for recruiting and selecting people for the organisation.
Although, the large number of people it is recruiting form its internal sources, which have
major advantages are as follow:
Advantages
1. Accurate information and knowledge about the candidate is available for the
recruitment and selection because the candidate is already connected with the
organisation.
2. No chances of discrepancies are possible because organisation have all the
performance and personal records of the employees.
3. Proper information about the candidate helps the HR department to select the right
people for the right job.
11 R. S. Schuler, S. E. Jackson, & I. Tarique, ‘Framework for global talent management: HR actions for dealing
with global talent challenges’, Global talent management, vol. 5, no. 7, 2015, pp. 17-36.

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4. It reduces the hiring cost for the organisation and advertisement also reduces its
expenditure on training sessions because most of the people have already knowledge
of organisational work processes.
5. It motivates other employees because people want to perform well to see the
performance of other employees.
Disadvantages
The major disadvantages of selection and recruitment approach of the company are as
follow:
1. There is limited choice to hire and select people for the organisational vacant posts.
2. Tesco can hire the people on low salary packages from the outside as there are large
numbers of people are standing in the row for getting jobs.
3. Tesco will miss the opportunities to hire more talented and skilful people from outside
sources.
4. It is somehow failure of the organisation in the sustain society and learning
development because it is not hiring people from the external sources.
5. The recruitment from internal sources of the organisation will not help the
organisation to explore its business among the people, as people will not get the right
information about its vacancies or post available for job or employment. Thus, the
image of the organisation will be limited as the selfish organisation that is not doing
anything for the society12.
4 HRM practices and Application
The HRM practices and selection in Tesco is the way of choosing right people for the
right job with required skills and qualifications. Tesco provides all the facilities to its HR
department to hire and talented people in the organisation that help the company to meet
its requirement and helps to achieve its objective13. Tesco is known for its best HR
practices where managers and supervisors of the organisation also play an important role
12 McCann, L., et. al., ‘Casting the lean spell: The promotion, dilution and erosion of lean management in the
NHS’, Human Relations, vol. 68, no.10, 2015, pp. 1557-1577.
13 J. Haddock-Millar, and C. Rigby. ‘Business Strategy and the Environment: Tesco PLC’s Declining Financial
Performance and Underlying Issues’, Review of Business & Finance Studies, vol. 6, no. 3, 2017, 91-103.

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in hiring people from the organisation14. However, selection of candidate in the
organisation from this procedure is one of the costly and time-consuming procedures as
Tesco follows a long methodology to hire and recruit people in the organisation. For
example, selection of people required, inviting applications of candidate, screening the
profile, select the best profile for the jobs and personal interview etc. Although, the best
HR practices in the organisation helps to achieve its long-term objectives and goals. The
best practices of HR in Tesco are as follow:
1. Providing securities to employees increase the satisfaction level of employees:
Tesco provides securities to its employees by providing them job security and a
healthy work environment to the employees that helps the organisation to meet its
objective. For example, Tesco provide a safety and security to those people who work
in the fieldwork such as driver who transport the raw materials from warehouse to the
stores15. The benefit of this strategy of the organisation helps the employees to remove
fear from their mind of job loss or salary deduction etc. This will enhance the
confidence and satisfaction level among the employees.
2. Selection of Right people for the right job: Selection of right people is the most
preferable approach of TESCO. The human resource department ensures equality in
selecting people and provides equal opportunities to these people in the organisation.
The Tesco compiles a right job profile for the right people and estimates the ideal
number of requirement in the organisation. The job recruitment process in Tesco is
based on the numbers of people required for the particular job position. The benefit of
this HR strategy of TESCO is that it improves the skills of people and that will further
enhance the organisational performance with specific skills and competencies. This
further helps the organisation to increase the productivity that is directly related with
the profitability of the organisation.
3. Self-managed and effective teams that enhance the performance of the
organisation with self-decision making capabilities: The organisation also train and
develop the employees through various organisational programs that helps the
organisation to create a self-managed teams that are able to take strict action and
14 Martin, G. and P.J. Gollan, ‘Corporate governance and strategic human resources management in the UK
financial services sector: the case of the RBS’, The International Journal of Human Resource Management, vol.
6, no. 7, 2013, 2017, pp. 3295-3314.
15 S. Wood, N. M., Coe, and N. Wrigley, ‘Multi-scalar localization and capability transference: exploring
embeddedness in the Asian retail expansion of Tesco’ Regional Studies, vol. 50, no. 3, 2016, pp. 475-495.

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timely decisions16. The self-decision making capabilities of people in the organisation
enhance the efficiency of people that further enhance the profitability of the
organisation.
4. Performance based compensation: Tesco provide a competitive salary package and
compensation to it employees for their performance. Tesco also provide incentive,
bonus, and rewards for performing well in various functions of the organisation. The
benefits of extra reward and performance based incentives and compensation has
several benefits such as it motivates the employees in the organisation and forces
them to give their best in the organisation.
5. Provide relevant information and easy access of information to employees, which
helps the employees to take timely decision regarding organisational goals and
objectives: Tesco beliefs in treating every employee fairly and provide all the
relevant information to all the people who required any kind of information. The easy
access of information helps the employees to take instant decisions and improve the
way of working. The accessibility of information enhances the decision making
capabilities of the organisation.
4.2 Methods used in HRM practices
Tesco uses the best HR practices and methods in recruiting and selecting people. However,
the major thing that is considerable in the HRM practices is employee’s satisfaction and
motivation that helps the employees to stay in the organisation for the long time period.
According to Maslow’s need of hierarchy theory if the basic needs of people will be fulfil by
the organisation, then employees can perform their best in the organisation. According to
Maslow’s need of hierarchy theory, there are five needs of humans that motivate the people.
These needs are physiological need (basic needs such as food, shelter, security, and clothe),
safety needs, belongings need (love, relation, family), self-esteem needs (name and fame,
social reputation), and self-actualisation needs. These all needs are helpful in motivating
people at various stage of their life. Apart from this, various other theories are also focuses on
needs of people to motivate the employees. However, the Tesco focuses on fulfil all these
needs of employees and does the better HR practices in the organisation. The various
methods used in HR practices in Tesco are as follow:
16 S. Bach, ‘Performance management’, Managing human resources: Human resource management in
transition, vol. 6, no. 7, 2013, pp. 221-342.

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1. Job evaluation and analysis: Job evaluation and analysis helps to analyse the
employee’s performance and designed the salary structure and compensation policy
according to the requirement. Job evaluation work in Tesco includes monitoring the
nature of the job, kind of efforts put by employees, competence level, level of effort
etc. This analysis helps to determine and review the performance and compensation of
the employees.
2. Reward system: Reward system helps the organisation to achieve its objective and
goals within the given time of period. It also helps in motivating employees towards
the organisational goals. This helps the employees to get motivated in effective and
efficient ways.
3. Employee Performance Monitoring: There are large numbers of people working in
the Tesco organisation and it is tough for the organisation to monitor the performance
of every employees. However, Tesco is expert in managing and monitoring the
performance of its employees. The electronic equipment such as camera, performance
analysis on the job, and periodically review of performance helps the organisation to
monitor the performance of every people in the organisation17.
4. Key Elements of Employment Legislation and its impact on HRM decision
making
Tesco is operating its business in different countries under the different government rules and
regulations. Therefore, the organisational people in the company need to follow different
laws and policies in different places in different ways. The UK rules and legislation also
determines the business practices and HRM management in the country. These laws are
related to labour law, compensation law, workplace safety and culture, etc. These laws ensure
that employees will be well satisfied in the organisation and also protect the right of every
employee. Most of the government where Tesco operates its business, these laws are apply in
different way and in different manner. Some key employment legislation in UK that has
impact on HRM decisions making are as follow:
17D. Kleine, Light, A., and M. J. Montero, ‘Signifiers of the life we value?–considering human development,
technologies and Fair Trade from the perspective of the capabilities approach’, Information Technology for
Development, vol. 18, no. 1, 2016, pp. 42-60.

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1. Law related to the equal employment opportunities for every people in seeking
jobs: It ensures that TESCO will provide job opportunities for every people who are
seeking jobs.
2. Law related to Affirmative actions that favouring everyone: This will help in
determining equal rules and regulations for every people in the organisation. It is
really affecting the HRM decision when an organisation gives more weightage to the
male workers rather than female workers. TESCO promotes equal pay and equal
treatment for all employees.
3. Law related to Gender Pay Gap: The law related to gender pay gap avoid any
biases between the salary structure of women and men. All are treated in equal
manner in the organisation. Although TESCO is known for its best salary and
remuneration practices which is based on work and job role.
4. Law related to Good working Conditions for Employees: Under this law in UK,
people should be provided clean and safe work environment. TESCO cares for its
employees and promote cleanliness and safety in the organisation. It also ensures that
every people will follow the safety standards during their work.
5. Laws related to Trade Unions and other Industrial Relationship: The law related
to employment relations supports to formation of trade unions in the organisation that
raises the voice of employees towards the management and administration and ensure
a healthy relationship in the organisation.
5. Internal and external factors that affect the HRM decision-making
HRM department in the organisation plays a key role in the organisation. However, there are
many internal and external factors that affect the HRM decision in the Tesco. These factors
are as follow:
Internal Factor: The major factor that affects the HR decision-making in the
organisational is the relationship between the management and employees. A poor
relationship in the organisation may result in avoidance of decision making of HR
department. However, the Tesco provide clear and specific policies regarding the
employment relations between the management and the employees18. Apart from this, the
poor working conditions, low wages/salary, and order from various HR managers also
responsible for poor relation that affect the HRM decision-making in the organisation.
18 M. Simmons, ‘Mark Simmons, HR and QHSE director’, Strategic HR Review, vol. 12, no. 3, 2017, pp. 14-25.

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External Factors: There are various external factors that affect the decision making of
HR in the Tesco organisation. For example, the new store of Tesco must follow the law in
the new market and follows the rules and regulations of local government. The second
factor is economic conditions. For example, the high inflation rate and unemployment
rate affect the compensation and recruitment policy of Tesco. While the technological
advancement and workforce demographics affect the decision related to compensation if
management want to reduce the salary of employees19.
5.1 Key aspects of employee relations management and Employment legislation
Employee Relation Management: Tesco has designed its stores in such a way that the HR
manager will lead the other employees of the organisation from a single place. The
relationship between the employees and line manager depends on their decision-makings.
The line manager at the Tesco ensures that line manager will take the correct decision that
will help the other employees in their working and also helpful in dealing with customers.
The lead manager is also responsible in the store to manage a healthy relationship with other
colleagues and employees in the organisation20. The manager also ensures that employees of
the store will provide best possible service to the customers, thus customer leave the room
after fool satisfaction and with great customer experience. For example, to establish a good
relation with its employees, Tesco encourages its employees to work near the homes. Apart
from this, the organisation also work on green initiatives that helps to cut the fuel
consumption and provide work to their employees near their homes, thus they can travel less
and save the fuel21.
Legal and Regulatory Framework in context of HRM: Tesco is operating its business in
different countries under the different government rules and regulations. Therefore, the
organisational people in the company need to follow different laws and policies in different
places in different ways. These laws are also applicable on different HR department with
different affects. These laws are related to labour law, compensation law, workplace safety
and culture, etc. These laws ensure that employees will be well satisfied in the organisation.
19 B. Kunerth, and R. Mosley, ‘Applying employer brand management to employee engagement’, Strategic HR
Review, vol. 10, no. 3, 2011, pp. 19-26.
20 A. McKinnon,‘Setting targets for reducing carbon emissions from logistics operations: principles and
practice’, In Developments in Logistics and Supply Chain Management, vol. 6, no. 7, 2016, pp. 266-278.
21 P., C. Sparrow, Brewster, and Chung, C.’Globalizing human resource management’, Routledge, 2016.