Human Resource Management Report: Tesco's Russia Venture

This report provides an in-depth analysis of Tesco's Human Resource Management (HRM) strategies, specifically focusing on its planned joint venture in Russia. The report begins with an executive summary and introduction to HRM, emphasizing its importance in hiring and retaining skilled labor. It includes a company profile of Tesco and a PESTLE analysis of the Russian market to identify external factors influencing business operations. The report then delves into Tesco's recruitment process, including methods such as online advertisements, recruitment agencies, written tests, and interviews, highlighting the use of Fraser's five-fold grading system. Furthermore, the report explores the impact of HRM strategies on employee engagement, training and development approaches, and reward management. It also discusses the challenges Tesco might face, particularly cultural differences. The report concludes with recommendations for successful implementation of HRM strategies in the Russian market and provides references to support the findings.

HUMAN RESOURCE
MANAGEMENT

Executive Summary
The aim of the report is to develop understanding about international HRM strategies for
conducting joint venture. Study discusses reward management and its impact on business
performance. It describes advantage of HRM strategy on improving engagement of
employees.

Contents
Executive Summary.........................................................................................................................2
INTRODUCTION...........................................................................................................................1
LO 1.................................................................................................................................................1
LO 2.................................................................................................................................................4
Recruiting process of Tesco.........................................................................................................4
LO 3.................................................................................................................................................5
LO 4.................................................................................................................................................7
Training and development approaches........................................................................................7
LO 5.................................................................................................................................................8
LO 6.................................................................................................................................................9
LO 7...............................................................................................................................................10
Conclusion and recommendation..................................................................................................12
References......................................................................................................................................12
Alec Rodger’s Seven-Point Plan And Munro Fraser’s Five-Fold Grading System. 2010. [Online].
Available through <https://bzowy.wordpress.com/2010/11/08/alec-rodgers-seven-point-plan-
and-munro-frasers-five-fold-grading-system/ >............................................................................14

INTRODUCTION
Human resource management (HRM) is essential function of the business unit. This helps
in hiring skilled labour in the organization and retaining people in the workplace for longer
duration (Loucks and Van Beek, 2017). HR mangers motivate employees and train them in such
manner so that they can perform well and feel satisfied in the organization. In order to expand
business in other location it is essential for the company that to look upon the market condition
and analysis skills gap. This helps in providing training to existing staff so that they can perform
well in the new location. Present study is based on Tesco which is the international retail firm.
Company is currently operating its business across the world. Recently it is planning to establish
join venture in Russia (Wilton, 2016). In order to successful conduct operation in the new
location it is very important that Tesco recruits talented staff members those who can perform
well in the new country. Study will include overview of the business. It will conduct PESTLE
analyses of Tesco for the Russia market. Furthermore, assignment will explain recruitment
process in the company.
LO 1
Tesco (Company profile)
Tesco is the multinational firm and the leading retail firm. It is the public limited firm, it
has 6553 stores across the world. In the year 2017 total revenues generates by the company was
55917. Its operating income in the same year was 1280. Company has employed 476000
employees in the year 2017 those who are serving well to the consumers. Tesco implements
strategy to improve its global performance so that it can gain competitive advantage and can
raise its revenues as well (Brewster, Mayrhofer and Morley, 2016).
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Illustration 1: Tesco financial performance
Aim of the cited firm is to develop its employee's sills so that they it can successful
perform in the Russia. Company will follow all the legal norms and regulations so that it can
establish its business in the new market easily (Reiche and et.al., 2016). In order to achieve its
objective Tesco provide necessary training to the staff members so that their level of
performance can be increased.
Company is planning to enter in the Russian market through join venture. This strategy
may help the entity in minimizing risk of the business and can help in sustaining in this market
for longer duration (An and et.al., 2015).
Country condition
Russian government is concentrating on increasing performance of retail business. For
that they are making effective laws that are helping in development of this industry. In the year
2011 GDP of the country has got down but later on improvement has been occurred by raising
export and import activities (Knies and et.al., 2015).
Pestle Analysis
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Pestle analysis is the model which helps in identifying external environment condition of
the firm. With the help of this technique entity can analysis major element that impact on overall
success of the business unit to great extent (Matonis. and et.al., 2016).
 Political factor: Internal political condition of Russia is stable and government pays more
attention on increasing foreign investment so that economy position of the nation can
become more strong. If Tesco enters in this market then it will be beneficial for the cited
firm in increasing its profitability because it will help in making partnership with the
local firm in order to establish its business in Russia (Biswas and et.al. 2017).
 Economic factor: Economic condition of Russia is sound. There is stable economy
condition and people have adequate job opportunities. Tax rate is rate that can help the
Tesco inn earning high profit in this market.
 Social factor: Population of Russia now has reached to 146.5. People have adequate
income sources and they are living standard life (Brewster, 2017). Thus, Tesco will be
benefited because it will be able to fulfil needs of people that will support in raising
revenues of the business.
 Technological factor: Russia takes support of advance technologies, mobile application
and other online software enhance efficiency of the business. This technological
advancement will help the Tesco in hiring skilled labour in the organization and raising
their performance (Celma, Martínez‐Garcia and Coenders, 2014).
 Environmental factor: Tesco already applies waste management policy that helps the firm
in fulfilling its corporate social responsibilities. Through joint venture it will be able to
create sustainability strategy which will be effective for the growth of the entity. Legal factor: Company follows all norms (Armstrong, 2014). These policies help the firm
in creating fair environment where all people can perform better and can feel satisfied.
Issues face by Tesco implementation HRM strategy
There are many issues that can be faced by Tesco when it enters in to the Russia market.
The major issues are related with culture. As culture of UK is far different from Russia. Thus,
employee may feel comfortable to work there because due to language barrier they will get fail
to communicate with consumers well. Apart from these working practices of both these places
are different. In such condition local workers may feel difficulty in accepting changing
environment in work based practices (Shields and et.al., 2015).
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LO 2
Recruiting process of Tesco
Recruitment and selection is considered as one of the most important aspect of the
business unit. HR managers put efforts to hire skilled labour in the organization those who can
perform well in the workplace and can contribute in achieving goal of the firm. It is the duty of
HR manager that to hire right person for the right job those who can contribute well in the
development of the organization (Bratton. and Gold, 2017).
Tesco aims to establish its business in Russia by taking support of joint venture. In order
to operate business in new market successfully it is required to select people and analysis their
skills properly. Cited firms gives advertisement detail on its website. In this advertisement it
gives all detail about requirements, education al qualification, job role so that right candidate can
apply in the firm (Johnston and Marshall, 2016). Furthermore, Tesco also takes support of
recruitment agencies. It gives detail about the vacant posit to these external agencies and inform
them their requirements. By this way these agencies send the capable people for the interview. In
its recruitment process HR managers first conduct written test related to the post. In this written
test all reasoning and mental ability questions have been asked by the firm. People those who got
selected in this written test call for the next round. In the next round people have to attend
interview session. Recruitment committee of Tesco in which 5 members are present including
HR manager, they ask questions with the candidates to identify their skills and abilities. On the
basis on interview committee select the final candidate who is most deserving for particular post.
It is the recruitment and selection process in the Tesco (Laudon and Laudon, 2016). By going
through this process, cited firm becomes able to hire skilled people those who can work better in
the new location effectively.
Tesco takes support of Fraser's five fold grading system in its recruitment process.
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Illustration 2: Fraser's five fold grading system
Source: (Alec Rodger’s Seven-Point Plan And Munro Fraser’s Five-Fold Grading System. 2010)
HR manager of Tesco requisition of the recruitment on its website the it collects CV of
the people. People come to the reception and fill self-amassment form. After that written test is
being conducts in this firm in order to select the right candidate (Kwon, Lee. and Shin, 2014).
Technical interview is conducted by the HR manager and then final document verification round
occurs. Once candidates have been selected then offer letter is being provided by the HR
manager to the selected applicant. By following these steps recruitment process being completed
in the organization.
LO 3
Human resource management is most important function of business unit. Tesco is the
internal firm, it plans to establish its branch in Russia so that it can earn more profit and can
enhance its brand image. In order to achieve this objective all its employees contribute well.
They put their hard efforts so that overall goal of the company can be achieved (Pulakos and
et.al., 2015).
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HRM strategy of Tesco is to develop healthy relationship with workers and give them
proper training. This training and development programs helps workers in raising skills and
improving their workplace performance. They become more committed towards their work and
perform work with efficiency. This is the reason that Tesco has become able to retain its talented
staff member in the organization for longer duration. HR strategy of Tesco is to provide flexible
workplace environment to all its employees. This flexibility helps the firm in making balance
between personal and professional life of workers. Cited firm offer flexible working hours,
option of working in shift etc (Shanks, 2016). These strategies assist business unit in enhancing
satisfaction level of its staff members. By this way people become able to give more time to their
families. This enhance their loyalty towards work and they put their hard efforts through which
company can grow well and can successful establish its business in Russia easily. Overall
success of business is highly depended upon its employees, they can influence performance of
the firm. Thus, Tesco develops strong relationship with them so that conflicts can be minimized
and working efficiency of all the workers can be improved (McKeown and et.al., 2015).
Hr strategy is very effective in strategic integration. Tesco conducts market research and
try to find out needs of the population. As it is planning to relocation the business in Russia for
that company is required to know desires of Russian people. Hr strategy helps in strategic
integration and making necessary changes in the operations so that corporation can fulfil needs
of staff members easily. This may satisfy people and can retain in the firm for longer duration. In
order to motivate its employees (Barrick and et.al., 2015). Tesco provide reward and recognition
to them. RM strategy is to measure the performance of employees and accordingly provide them
rewards. This reward management strategy of cited firm encourages people and create fair
workplace environment so that staff members like the company and communicate with each
other’s well. By this way they will share their innovative ideas with high authorities and will not
resist if entity plans to modify its working environment. This supports the Tesco in gaining
success and achieving competitive advantage in the market (Deresky, 2017).
HRM strategies are effective enough in achieving goal of employee commitment,
flexibility. This increase productivity of the firm and entity becomes able top provide high
quality product and services to consumers and satisfy their needs. Tesco should concentrate more
on developing healthy relationship with its staff members and required to involve them in
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decision making process. This is the way that can make them committed towards the brand and
can enhance their production ability (Mir and Pinnington, 2014).
LO 4
Training and development approaches
Training and development is most important part of HR function. Human resource
management is responsible to identify strength and weakness of employees. Accordingly, they
organize training programs so that weakness of individual can be minimized and skills can be
strengthening. Training enhances ability of individual to performance well and they become
more committed towards their jobs. Tesco invest huge amount in order to enhance knowledge
and expertise in its employees (Lee. and Wong, 2015). Therefore, it conducts training session
time to time for its workers so that they get appropriate knowledge that may help in raising their
performance level. Long term capital not only enhance skills of the people but also supports in
the growth of business unit because company may earn high profit if its employees are trained
well.
As Tesco is planning to enter into Russia through joint venture, for that it is very
important for the corporation that to organize training programs for its workers (Hiebl, 2014).
This will help them in making its employee aware with the new market and needs of local
population. That will help them in dealing with population well and resolving their quarries
effectively. Training improves commitment of the people towards their job and they perform
their responsibilities impressively. This helps the organization in achieving its long term
organizational goal soon (Hill, Jones and Schilling, 2014).
There are various kinds of training methods that can be implemented by Tesco when it
enters in Russia. Training will make people aware with cross culture and how to deal with this
aspect. Methods of training are described as below:
On the job training
It is the type of training and development program in which Tesco gives training
to workers at their job time. Coaching is the common type of method in which existing
employees those which are working in host country give coaching to workers regarding sales
performance of the firm and market condition (Shields and et.al., 2015). This helps the person in
observing the working process and getting knowledge about work-based practices. On other
hand Role play is another type of method which is adopted by Tesco in order to arrange on the
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job training method. In this technique manager organize role play system where one-person act
as customer and other acts as employees. By this way working situations can be understand
significantly (Celma, Martínez‐Garcia and Coenders, 2014).
Furthermore, off the job training is another type of method which is far differed from on
the job training method. In this Hr manager does not provide training at the workplace. They
make them aware for working practices, market condition and their responsibility in firm at
classroom or through electronic training sessions. In this training session they discuss about cross
cultural aspects that may be face by them and how to deal with these issues. This helps in
minimizing mistakes and they become comfortable to perform well in the organization (Johnston
and Marshall, 2016).
LO 5
Traditionally many companies were using personal management approach due to which they
were facing issues in managing people well in organization. But later on HRM theory has come
into existence that has supported firms in managing employees well and retaining them in
workplace for longer duration. Now large companies are taking support of human resource
management strategies in order to improve performance of the company to great extent. HRM
helps Tesco in gaining competitive advantage and gaining positive results in the market (An and
et.al., 2015).
Practices of HRM impact on employee’s performance and they become more committed
towards their job. Main function of HR is to recruitment skilled people in the workplace. These
talented persons are able to perform well and contribute in achieving goal of the company. HR
managers provide training to the employees so that their skills can be improved and they can get
better promotional opportunities in the firm. Tesco is aiming to enter into Russia market, in order
to gain success in this market it is essential for HR manager that to provide training to workers so
that they can get adjusted in cross cultural environment easily and can communicate with
consumers well (Loucks and Van Beek, 2017). In the absence of proper training overall firm’s
objective may get failed to be achieved. This helps in developing strong relationship with
employees which enhance their participation in the business.
Another function of HRM is to make effective coordination between various department.
For that company takes support of high technologies and communicate with its employees
through email and telephones. It circulates important message through email and give chance to
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the workers to raise their issue on mail (McKeown and et.al., 2015). This enhance coordination
among employees and employees and workers become loyal towards the firm. HR manager takes
feedback from the staff members time to time so that they share their views. This helps in
identifying issues in the workplace so that manager can make effective strategies that can support
in minimizing this issue and creating healthy workplace environment. HRM concentrate on
motivating people in Tesco so that they can work better in cross cultural environment. In order to
encourage the people cited firm measure their performance and on the bases of their performance
it provides them reward and recognition. This reward management system helps the entity in
boosting people and fulfilling their needs. By this way they become loyal towards the brand and
perform their work effectively (Hill, Jones and Schilling, 2014). This is the way that increase
employee engagement in the business and help firm in providing high quality products and
services to the consumers. This engagement and participation of employees assist in finding
innovative ideas and making positive changes in business unit so that Tesco can satisfy needs of
the local people in the new market. This HRM has strong relationship with the performance of
the organization. If HRM practices are not effective then employee may feel dissatisfy and they
will not deal with consumers ell. In such condition company will not be able to attract people
towards the brand and fulfilling their requirements. Whereas if HR manager is able to satisfy its
workforce then employee will be more committed and they will contribute well in accomplishing
goal of the corporation to great extent (Lee. and Wong, 2015).
LO 6
Whenever company plans to enter into the new market then t may have to face huge difficulty. In
such condition effective management of employees plays significant role that helps in
overcoming from issues and establishing business in the new location easily. Tesco makes joint
venture in order to enter into the Russia market. As there are many competitors those which are
performing well. In such condition strategy of HRM can get failed to get desired results
(Deresky, 2017). Apart from this, language and culture difference are another major issue that
influence development of the company and may create issue in implementation of HRM
practices. In order to resolve these issues Tesco is required to adopt reward management,
performance management concepts.
Reward management is considered as effective approach in which employer provides
additional benefits or rewards for the good performance of its workers. This reward may be in
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