Analysis of Human Resource Management Practices at Tesco PLC

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HUMAN RESOURCE MANAGEMENT
TESCO

Table of Contents
INTRODUCTION.....................................................................................................................................2
ORGANIZATION OVERVIEW...................................................................................................................3
LO1........................................................................................................................................................4
P1 PURPOSE AND THE FUNCTIONS OF HRM, APPLICABLE TO WORKFORCE PLANNING AND
RESOURCING.....................................................................................................................................4
P2 STRENGTHS AND WEAKNESSES OF DIFFERENT APPROACHES TO RECRUITMENT AND SELECTION
..........................................................................................................................................................6
M1 HR FUNCTIONS TO FULFIL BUSINESS OBJECTIVES.....................................................................10
M2 STRENGTHS AND WEAKNESSES APPROACHES TO RECRUITMENT AND SELECTION..................11
LO2......................................................................................................................................................12
P3 BENEFITS OF DIFFERENT HRM PRACTICES WITHIN AN ORGANIZATION FOR BOTH THE
EMPLOYER AND EMPLOYEE............................................................................................................12
P4 EFFECTIVENESS OF DIFFERENT HRM PRACTICES IN TERMS OF RAISING ORGANIZATIONAL
PROFIT AND PRODUCTIVITY............................................................................................................13
M3 DIFFERENT METHODS USED IN HRM PRACTICES......................................................................13
LO3......................................................................................................................................................15
P5 IMPORTANCE OF EMPLOYEE RELATIONS IN RESPECT TO INFLUENCING HRM DECISION-
MAKING...........................................................................................................................................15
P6 KEY ELEMENTS OF EMPLOYMENT LEGISLATION AND THEIR IMPACT ON HRM DECISION-
MAKING...........................................................................................................................................16
M4 KEY ASPECTS OF EMPLOYEE RELATIONS MANAGEMENT AND EMPLOYMENT LEGISLATIONS. .17
LO4......................................................................................................................................................18
P7 APPLICATION OF HRM PRACTICES IN A WORK...........................................................................18
M5 RATIONALE FOR THE APPLICATION OF SPECIFIC HRM..............................................................18
CONCLUSION.......................................................................................................................................23
REFERENCES........................................................................................................................................24
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INTRODUCTION
The effective functioning of the organization has been dependent on different
organizational departments. The organization has several departments who play a
significant role in the operations of the organization so that they could meet their goals and
objectives effectively. The role of the Human Resource department has been vital in the
functioning of the organization as it ensures that the employees of the organization work in
an effective manner and contribute to the growth of the organization. The Human Resource
department works effectively with other departments to meet certain roles and
responsibilities. The functioning of the Human Resource department is carried through
different HR practices. A study has been conducted in order to gain insights regarding
Human Resource Management in an organizational context.
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ORGANIZATION OVERVIEW
Tesco is one of the leading multinational groceries and general merchandise retailer in the
UK. The organization has been conducting its operations from 1919 and has expanded their
businesses in different areas of the world. There are 440,000 employees have been working
in 6,800 shops of the organization around the world. The functioning and operations of the
organization have been dependent on different departments such as sales, marketing,
operations, human resource, etc. In addition, the organization has been working effectively
to attain a leading position in the European market along with the other areas of the world.
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LO1
P1 PURPOSE AND THE FUNCTIONS OF HRM, APPLICABLE TO
WORKFORCE PLANNING AND RESOURCING
Human Resource Management (HRM) is a vital element in the functioning of the human
resource department in the organization. In Tesco, the purpose of HRM has been significant
as it assists in the functioning of the organization at a huge level. HRM is resource-centred
which focuses on meeting the management’s needs regarding human resources. It helps in
managing the supply and demand of the organization effectively. In addition to this, the
purpose of HRM is to carry the planning and controlling. There are various functions of HRM
in the organization which are carried for attaining effectiveness such as:
 It helps in understanding the needs of the employees and further assisting them in
meeting their career goals.
 In addition to this, it effectively develops a positive interaction between the
employees which ensure that the healthy environment is maintained in the
organization that helps them in attaining high productivity.
 The improvement areas are identified in order to carry suitable training programs for
the employees.
 A rostrum is developed by the HR department of the organization to assess the goals
of the employees and further providing required resources so that they could attain
growth at a personal and professional level.
 The HRM ensures that innovative operations practices are carried to manage the
risks and develop a sense of belonging in the organization.
 Workforce planning is carried by the HR department to recruit potential candidates
for meeting the organizational requirements.
 There are various strategies under HRM functions which are applied for gaining
competitive advantage.
The aforementioned functions are carried under HRM in the organization so that effective
functioning could be carried. In addition to this, the HR department of the organization
utilizes HRM practices such as Best fit and Best practice approaches in their functioning. In
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the Best fit approach, the strategy is to plan the future activities, performance objectives,
and policies so that required goals could be accomplished. Further, the best practice
approach is applied to maintain a balance between HR practices and organizational
performance. The application of HRM functions in the organization assists in gaining
effectiveness at a huge level.
P2 STRENGTHS AND WEAKNESSES OF DIFFERENT APPROACHES TO
RECRUITMENT AND SELECTION
HR needs to decide which method will attract the candidates, which method will be best
suitable to recruit the people, (Garner, 2012)so here some approaches by which human
resource manager can recruit the people by knowing pros and cons of every approach:
Online websites and job boards: organizations can attract the candidates by showing the
vacancies in their organization’s website or there are general job boards such as
monster.co.uk. Tesco is also having its carrier site www.tesco-crriers.com.
Strength:
1. Cost-effective
2. Speed up the recruitment process
3. Effective management of vacancies with the help of technology
4. Immediate applications and global reach
5. Helps in branding with the help of videos and blogs
Weaknesses
1. Attract a large number of inappropriate applicants
2. Due to bad designing of the website it damages the branding and turn-off applicants.
3. Leads discrimination through the usage of cv keywords
Recruitment agencies: private agencies which help in providing permanent and temporary
placements (Garner, 2012).
Strengths:
1. Knowledgeable recruiters and specialist experts.
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2. Dedicated staff
3. Higher quality candidates
4. No risk, no hire and no fee.
Weaknesses:
1. Less reputed firms may send inappropriate candidates or too many candidates.
2. Mainly candidates prefer to deal directly with employers.
3. Costly fees
Search consultants: they are also known as headhunters as they are market sensitivities
usually required for senior posts (Noe, et al., 2017).
Strength:
1. Experts in the recruitment market
2. Circumspection
3. Likely to give best candidates
4. Identifies best people for a job
Weaknesses:
1. Very costly
2. The restricted pool of applicants as it's for senior level.
3. Unavailability of shortlisted people
Press advertising: it consists of valid methods of recruitments such as trade journals,
professional journals, the national and local newspaper (Garner, 2012). These are available
in print and online editions and organizational agencies can negotiate the rates of
advertisement with media groups. Tesco uses E-recruitment which is Tesco intranet.
Strengths:
1. Positive communication of message and brand.
2. Helps in developing your brand
3. Target candidates with experience and specific skills
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4. Indicates fixed costs
Weaknesses:
1. High cost
2. No guarantee of return on investment or success
3. Process is slow
4. Limited coverage, who read newspaper or journals
Professional referral schemes: this approach works well when the fillings are done for
managerial roles as it involves internal referrals which are very effective (Garner, 2012).
Tesco use this internal recruitment plan
Strengths:
1. High-quality candidates
2. Retention rate is good
3. Cost efficient
4. Trustworthy sell of the vacancy
Weaknesses:
1. A limited pool which fails to create a manifold workforce
2. Demotivate the employees if his recommendation get rejected
3. Create distractions
Universal job match: organization or employer needs to have their government gateway id
for the advertisement is available via www.gov.uk/advertise-job.
Strengths:
1. Immediate posted of vacancies
2. Substantial national network
3. Equality of opportunities are committed
4. Help is provided for application shifting
5. Helps in dealing lay-offs
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Weaknesses:
1. No pre-screening of candidates
2. Not a first choice for employment
3. Low-level vacancies
Recruitment events: it includes face to face fairs, an online chat where applicants can ask
the questions online (Noe, et al., 2017).
Strengths:
1. Increase awareness about the organization
2. Protest the employers brand
3. Good for filling numerous roles.
Weaknesses:
1. Not suitable for few vacancies
2. fewer chances to shift the candidates
3. Difficult to stand-out as others are competing.
Recruitment and selection process of Tesco:
Vacancies advertised on Tesco website and other media such as national press
Successful candidates invite for interviews
The successful candidate will attend a screening assessment centre
Unsuccessful candidates sent a letter
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Successful candidates will invite for the second interview
At last successful candidates get offer letter and contract from Tesco (Das and Ahmed,
2014).
M1 HR FUNCTIONS TO FULFIL BUSINESS OBJECTIVES
HR plays key functions which help the organization to achieve its objective. It's the duty if
human resource experts to guide and help the employees and managers to meet the
organizational goal. HR needs to mainta9in loyalty in the organization towards HR practices
and employees who are working for the organization (Bianca, 2018).
Staffing needs: human resources expert are required to do the proper staffing of employees
so that, work can be initiated in the right manner. HR needs to prepare job description, job
specification, assigning fair pay rate, and conducting recruitment and selection process for
attracting qualified candidates for the organization.
Corporate culture: HR needs to spread an attitude or vibes to all the levels that can
positively influence the jobs of employees. The company should develop a supporting and
engaging culture for employees that can help in sustaining manpower and reducing
employee turnover in an organization (Bianca, 2018).
Rewards and benefits: through proper distribution of compensation and benefits, an
organization can make the employees work enthusiastically and happily which will directly
give an impact on their performance. And this will ultimately give the result to the
organization.
Development of employees: organization can increase their work opportunities by
providing development chances for employees in the organization. Employees are the main
source to achieve the organizational objective so HR must conduct the training and
development program for employees to achieve the desired goal. By guiding employees HR
can ensure the good work of employees (Bianca, 2018).
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Performance management: to manage the performance of employees HR can implement
the changes in the workplace in order to better provide a good environment. Thus this will
help in managing the talent of the organization as well as promote a positive working
environment which will result in achieving organizational goal.
M2 STRENGTHS AND WEAKNESSES APPROACHES TO RECRUITMENT
AND SELECTION
The recruitment and selection process which is used by Tesco are having some strength and
weaknesses both the methods of recruitment internal or external has some pros and cons
that needs to take into consideration such as internal recruitment provides cost-effective
recruitment, candidates who are familiar with the business environment, motivates
employees by promoting them and awareness of strength and weakness of candidates to
organization whereas it has some negative side also like it has limitation for providing
potential applicants, there is no new introduction from outside (Bruno et al., 2012).
If the external recruitment process is conducted then it provides fresh and new candidates
through a pool of workers and provides a number of experienced candidates to the
organization whereas its negative aspects show that it takes longer procedure, expensive
and ineffective selection process due to reveal of best candidates (Bruno et al., 2012).
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