HRM Practices and Strategies: A Case Study on Tesco PLC

This report delves into the human resource management (HRM) practices of Tesco PLC, examining the differences between domestic and international strategies within the multinational corporation. It explores key factors such as risk exposure, external influences, and employee engagement, highlighting the significance of pre-departure training, verification processes, and ethical conduct. The report analyzes Tesco's strategic focus, including its commitment to customer and employee well-being, and its approach to recruitment, organizational development, rewards, and training. It also addresses the importance of safe working environments, policy revisions, and the integration of inclusive practices. The analysis covers the HRM cycle and the strategies employed for managing the workforce, emphasizing the role of managers in decision-making, the use of social media for communication, and the effective utilization of employee core competencies. The report also includes a summary of team member contributions and a brief overview of the presentation given to foreign delegates.

Running head: INTERNATIONAL STRATEGIC HUMAN RESOURCE MANAGEMENT
Human resource management of Tesco PLC
Name of the student:
Name of the university:
Author note:

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Contents
Task 1.........................................................................................................................................2
Summary of who did what.....................................................................................................4
Task 2.........................................................................................................................................6
Introduction............................................................................................................................6
Discussion..............................................................................................................................6
An insight into Tesco.........................................................................................................6
Human resource management of Tesco.............................................................................7
Conclusion............................................................................................................................12
Task 3.......................................................................................................................................14
References................................................................................................................................20

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Task 1
There are several factors, which underpin the differences between domestic and
international human resource management in MNC’s like that of the Tesco PLC. As a matter
of specification, these factors are risk exposure, broader external influence, diversified HR
activities, employee engagement, need analysis and alterations in the focus of the operations.
According to the arguments of Bell et al. (2017), taxation is one of the factors, which
differentiates the location and the national human resource management practices.
Expatriates in the foreign countries encounter tax liabilities, which has increased the
instances of relocation. Tesco PLC needs to be praised for exposing conscious approach
towards segmenting the domestic and the international HRM practices. Mention can be made
of the pre-departure training, which is provided to the employees filing resignation. Along
with this, the employees coming from abroad are engaged into the detailed process of
verification, consisting of the immigration details, accommodation services and others. Using
online means saves time, which is devoted towards upgrading the standards and quality of the
human resource management practices.
Dewhurst et al. (2015) states that perspective also differs in the domestic and the
international human resource management practices. Domestic practices revolve around the
policies and benefits for luring the employees towards the services. On the contrary,
international practices require the employees to undertake tasks and responsibilities, which
are out of their domain. This is a means for enhancing their professional development. Tesco
PLC ensures that domestic practices are executed according to the rules and regulations,
which are severe in case of the international parameters. In case of the indulgence into
personal life of the employees, international attains a high position as compared to the

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domestic. This reflects the need for developing career development plans and including it
within the domestic policies.
According to Fletcher, Alfes and Robinson (2018), the risks exposure is higher in the
international parameter, as there are issues like that of the tax obligations, language barriers,
cultural differences and others, which most of the employees and expatriates find difficult to
adjust. The recommendation in this context is that of the risk assessment and management, so
that the implications are not that severe. Tesco PLC needs to be praised for adhering to the
ethical code of conduct for resolving the taxation issues. In this context, mention can be made
of the Working Ombudsman, which helps in averting the illegal instances. The major drive
behind this is the effective communication with the international representatives. This
communication proves beneficial for Tesco in terms of detecting the solutions for financial
instabilities and political unrests, which stalls the import and export activities.
Apart from this, external influences are managed through the means of quality
training programs. The employees are exposed to the various devices, which helps in
connecting with the international partners. Herrmann and Herrmann-Nehdi (2015) states that
Equal Employment Opportunity Act is followed for providing equal opportunities to the
employees. In this context, one of the other aspects is that of the impact of the culture, which
cannot be transferred to the other spheres. However, language barriers are evident in the
expatriates. Typical example can be cited of the approaches towards performance appraisal.
Behavioral tests are conducted for measuring the effectiveness of the task allocation. The
managers of Tesco practice the culture of higher power, demanding loyalty and obedience
from the subordinates. The leadership style is that of transactional, which initiates upon the
decisions being levied by the managers (Hughes 2018). Herein lays the effectiveness of
Hofstede’s culture dimensions for mapping the power distances of the officials in Tesco
PLC.

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Coordination is important both for the domestic and international human resource
management practices. However, Larsen (2017) is of the view that support practices are
needed in the domestic sphere for enhancing the standards and quality of the team work. As a
matter of specification, attention needs to be given to the primary activities. Therefore, the
selection and recruitment standards need to be uplifted for enhancing the triple bottom line
approach of Tesco PLC. Product differentiation and diversification strategies are to be
followed for effective management of the operations in the foreign markets. One of the
important activities in this context is that of the measurement of the effectiveness of resource
and capabilities. The differentiation also lies in the manner of decision making process and
control mechanisms. Ramazani and Jergeas (2015) are of the view that the decisions
undertaken adversely affect the operations of the subsidiaries. This adds an interrogative
parameter to the control measures, degrading the streamline businesses in the global
perspective. Institutional differences are there in the staffing levels, which impacts the
communications regarding the negotiations. In this context, Reyna (2015) is of the view that
systematic review of the recruitment process is needed for achieving the desired results.
Herein mention can be made of the Tuckman’s stages of team development.
Summary of who did what
Member 1 was given the charge of conducting market research on the international
and domestic human resource management practices. In this process, he used the keyword
search and search engine optimization for directly going to the relevant articles. He took
notes of the important factors and synthesized the information for deducing relevant
conclusions. Member 2 was given the charge of collecting information on the different
perspectives from which the human resource management practices are perceived. This task
broadened the scope and arena of the knowledge horizons. Group discussions were
organized, which resulted in the knowledge transfer, reducing the knowledge inadequacies.

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Member 3 was in charge of collating all the information and assessing whether it is relevant
to the topic. After this, he was to select the design for the presentation through consulting the
other team members 4 and 5. After the selection of the design, supervisor is involved in a
meeting process, where he is briefed about the main points to be presented. His approval
seemed to be effective in initiating the respective tasks. Among these, member 3 was the
leader, who prepared the schedule. After completion of the tasks, he evaluated the
performance through the means of alternative analysis. This report of work break down
structure was submitted to the supervisor after the selection. Time was allotted for making the
changes if any in the plan and update to the supervisor. After all of the things were finalized,
the supervisor called the leader and briefed him about the presentation, which the team
members are to make within the time limit of 15 minutes in front of the foreign delegates.
(refer to the attached PPT)

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Task 2
Introduction
Human resource management is an important parameter in a business. Strategic
management is crucial in terms of achieving positive outcomes. The managerial levels differ
according to the requirements and culture. The methods of including the practices within the
strategies affect the productivity (Saks 2015). Strategies are central in terms of enhancing the
standards and quality of the operations in the multinational corporation like that of Tesco
PLC. Review of the strategies helps in assessing their effectiveness on the overall
productivity. This assessment attempts to excavate the importance of HR practices to the
business strategies of Tesco PLC.
Discussion
An insight into Tesco
Tesco PLC achieves accolades and glory as one of the popular retailers in the world.
The operations of the company are widespread across the world. Consciousness towards the
wellbeing of the customers and employees adds to the brand image. The strategic focus of
Tesco is divided into seven parts: to accumulate greater share of the UK market, to emerge as
a highly valued brand, to enhance the standards of online operations, to expand the scope and
arena of the retail operations, to adopt community development practices, to indulge in team
work for preparing the employees and others (Tescoplc.com 2019). Tesco also caters to the
creation of quality career opportunities for the employees’ professional development. Within
the strategies, the practices of customer service training, technological training are included.

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Fig: Human Resource Management Cycle
(Source: Tescoplc.com 2019)
Human resource management of Tesco
For Tesco, human capital is the key towards attaining success. Maintaining and
organization of the workforce performance helps in estimation of the nature of the business in
the upcoming financial years. One of the HR needs is that of the training, which is delivered
for fulfilling the needs of the employees. Implementation of the HR practices reduces the
financial risks for Tesco. However, the main aim is not monetary profit gain but the proper
placement of the employees. The managers in the HT department is involved in the decision
making process for the selection of the candidates to enhance the standards and quality of the
workforce (Torraco 2016). The main parameters in this context are recruitment,
organizational development, rewards and recognition and training. In case of recruiting the
candidates, Tesco creates the strategy of social media advertisement, interview, screening and

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others. The strategies also revolve around developing job evaluation systems, applicant
tracking systems and others. Along with this, the strategies also include performance
appraisals for developing the standards and quality of the employees’ performance (Pokharel
2016).
Fig: Tesco strategic management parameters
(Source: Tescoplc.com 2019)
For the organizational development, Tesco provides customer service and
technological training to the employees. Exposure to the systems acts assistance in gaining
the virtual skills, which enhances the standards and quality of the performance. The HR
managers are instructed to use the performance management systems for monitoring the

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performance. In this context, Tracey (2016) highlights the importance of forecasting, which
results in estimation for the nature of business in the upcoming financial years. Rewards and
recognitions include the strategic planning of increasing the salary and promotions. Along
with this, incentives are also provided to the employees for exposing better performance.
These rewards are effective for generating the interest within the employees for exposing
better performance (Fan et al. 2016).
Depending on the performance, training programs are organized for the employees to
improve their performance. In this context, the strategy is that of hiring the external agencies
for providing the training. Training prepares the employees for dealing with the external
challenges of the market. The managers urge the employees to expose better performance
through the means of self assessment (Vickerstaff, Phillipson and Loretto, 2015). Lucrative
training programs are organized for ensuring mass participation from the employees towards
the services Motivation and encouragement are essential for upgrading the skills and
competencies of the employees. For this, safe, comfortable and congenial working
atmosphere is of high importance. Policies and legislations are central doctrine towards
improving the standards and quality of the working conditions (Tung 2016). Therefore, the
HRM policies are revised and included in the strategies.
Along with this, supervision is also done by the external agencies, which is included
in the strategies. The reward programs and policies are revised, which is included in the
strategies and updated. Adopting the means of social media marketing is effective for
communicating with the employees regarding the important information. Kirwan (2016)
states that, training programs revolves around change and integration of the inclusive
practices, for enhancing the cultural diversity. The important parameters are also conflict
resolution, employee assistance and compliance with the standards and protocols of the
ethical code of conduct (Ayentimi, Burgess and Brown 2018). One of the other aspects of the

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human resource management strategy of Tesco is the effective utilization of the core
competencies of the employees. This is through the means of skills development.
According to the wheel, the parameter of the people consists of the questions
regarding getting the opportunity to act, safe and congenial working environment, helping
hand from the managers and respect (Al Ariss and Sidani 2016). Providing the safe and
congenial working environment is included in the strategies in the form of including the
aspect of inclusive practices, which provides the scope to the community workers to display
their talents. These inclusive practices have added positivity into the workplace (Srivastava
and Dhar 2015). Efficient means of negotiation are adopted for averting the instances of
biases, misunderstanding and conflicts. One of the points in this context is the face to face
sessions, which is included in the strategies for maintaining confidentiality in the issues
highlighted by the employees. In this context, Vickerstaff, Phillipson and Loretto (2015)
highlight the compliance with Data Protection Act (1998) and Equality Act (2010), which
generates equality in the workplace of Tesco.
Fig: Recruitment and selection process of Tesco
(Source: Theguardian.com 2019)

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Recruitment and selection strategy in Tesco is regularly updated for improving the
standards of the workforce. Screening of the candidates is done identifying the candidates
possessing the relevant skills and competencies. In this context, the assessment is done
through post evaluation means, which helps in identifying the effectiveness of the methods
used. Tesco needs to be praised for using alternative analysis for judging the process.
Maslow’s hierarchy of needs is applied in the assessment techniques for assessing whether
the strategies fulfill the needs of the employees (Tescoplc.com 2019).
Fig: Advertisement clipping of Tesco
(Source: Tescoplc.com 2019)
The above diagram is a newspaper clipping of Tesco regarding the decision to provide
turnaround bonus to the staffs. For this, financial assessments are regularly conducted, which
averts the instances of the instabilities like inflation, high exchange rates and others.
Meetings are conducted with the union members for gaining an insight into the ways of
dealing with the financial instabilities (Brewster et al. 2016).
Performance management systems simplify the control mechanisms of Tesco.
Divisional organizational structure is assistance in terms of enhancing the standards and
quality of the team working skills towards developing the skills, competencies of the
employees (Reyna 2015). Tracking the performance and scoring is effective in terms of
mapping the journey of the employees. Within this, reference can be cited of the careers

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enhancement plan, which ensures better placement for the employees (Budhwar 2016). As a
matter of specification, performance management in Tesco revolves around the activities of
appraisal and review, feedback, pay and reward system, improvement plans and career
enhancement plans. As per the arguments of Larsen (2017), alignment of the business goals
with the needs of the employees adds relevancy in the operations. For this, Maslow’s
hierarchy of needs theory is adopted for revising the terms and conditions of the policies and
guidelines. Within the strategies, Reiche et al. (2018) highlights the aspect of rotational
shifts is also included. This enhances the ease of the employees regarding producing effective
performance. Along with this, on-the-job-training enhances the awareness about the
mechanisms of the work systems, which reduces the chances of mistakes. Herein, Herrmann
and Herrmann-Nehdi (2015) relates the appropriateness of cognitive learning theory, which
enhances the stability in the relationship with the higher authorities. As the employees learn,
they face doubts and challenges, which is clarified by the experts and the trainers. Employee
Redressal Forums are there to address the doubts of the employees (Reiche et al. 2016).
Conclusion
Tesco exposes strategic approach towards the training and development of the
employees. Before the training programs, need analysis is conducted, which is beneficial for
planning relevant services for the employees. This approach is assistance for the managers in
terms of deducing the strengths and capability of the employees towards performing the
allocated duties and tasks. This approach, further, enables the managers in identifying the
areas, in which the employees need improvement. Motivation and encouragement are used in
the form of rewards for luring the employees towards the services. Adhering to the standards
and protocols of the employments legislations reduces the instances of conflicts, enhancing
the cultural diversity. All of these aspects are regularly updated in the strategies for preparing
the current reports.

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Task 3
Through internet research, I have found that Tesco’s human resource management is
flexible due to the presence of performance management systems. Divisional organizational
structure helps the personnel to expose collaborative approach towards regulating the
performance of the employees. I think that effective communication is established between
the managerial levels for reviewing the performance, which helps in conducting Journey
mapping. This mapping is important activity for making estimates regarding the progress
with the current performance (Dewhurst et al. 2015). Along with this, I have also learnt that
journey mapping also helps the managers in ensuring better career placement for the
employees. Performance management systems prove effective in management of the strategic
and operational goals. Stable relationship with the research and development team seems
productive for developing future growth strategies in order to enhance the skills, capabilities
and competencies of the employees.
As a matter of specification, I can state that six components play an important part in
performance management of Tesco. These are: performance management component,
performance appraisal and review, feedback mechanism, pay and reward system,
performance improvement plans and future growth plans for the employees. With the
arguments of Bell et al. (2017), I confirm that synchronization of the business goals with that
of the human resource goals is the primary activity in the workplace of Tesco. For this, the
managers involve the employees, as they are the assets towards enabling the organization in
the fulfilment of the identified and the specified goals. However, I am concerned that
negligent approach towards the usage of performance management systems creates
imbalances in the business operations.

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I have gained an insight into the fact that flexible and structured approach is exposed
by the managers of Tesco in terms of catering to the training and development needs.
Mention can be made of both on-the-job training and off-the-job training methods, to which
the employees are acquainted with. In case of on-the-job training, there are skilled and
proficient trainers, who guide the employees in carrying out the allocated duties and
responsibilities. Considering to the arguments of Fletcher, Alfes and Robinson (2018), I can
state that that the managers inspire the employees to find solutions for the problems, which
they face during the process of executing the operations. This approach helps in enhancing
their leadership skills, abilities and competencies. Mentoring the performance of the
employees enhances the functionality of the advisers of Tesco. This is in terms of ensuring
their better career establishment.
According to me, Rotational shifts are provided to the employees of Tesco, which
proves beneficial in terms of gaining a deeper insight into the allocated duties and
responsibilities. The managers prefer on-the-job training as compared to off-the-job training,
as it is cheaper and within the expenses. Along with this, on-the-job-training puts the
employees into learning process as they carry out the tasks. Herein, I affirm with the
statements of Hughes (2018), which relates with the appropriateness of cognitive learning
theory, as the employees learn the concepts in a practical manner. As the employees learn,
they face doubts and challenges, which is obvious. Getting the doubts cleared through the
help of the trainers and the managers is a planned approach in terms of achieving a deeper
understanding of the duties and responsibilities.
On the contrary, I also consider the arguments of Ramazani and Jergeas (2015), who
is of the view that off-the-job training is more beneficial for the employees of Tesco. This is
because the training helps the employees in enhancing their skills in specific areas like
teamwork, communication, planning and self-organizational skills among others. External

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experts are hired by the managers for enhancing the extracurricular skills of the employees.
Mention can also be made of A-level Options Program, of which, I was an important part. It
was conducted by Tesco for organizing induction training. New managers were recruited for
providing this training. Interactions between new managers and trainees resulted in
knowledge transfers, indicating reduction in the knowledge gaps. Assessing the performance
of the employees in the training helped the managers to align it with the identified and
specified objectives. With the arguments of Saks (2015), I can propose that this alignment is
assistance in terms of developing plans for enhancing the organizational productivity.
Apart from this, I have also learned that there are three learning approaches:
Behaviorist, Cognitive and Humanist. Behaviourist approach to learning reflects the
learners’ response to the stimuli in the surrounding environment. The approach of the trainer
is crucial in terms of assisting the employees to make appropriate response to the lectures and
gain the necessary skills, abilities and competencies. One of an important aspect in this
approach is classical conditioning. I think this type of conditioning helps the managers of
Tesco to assess the approach of the employees towards various and wide ranging conditions
within the training. The approach of the employees is taken note for gaining an insight into
their capability towards executing the allocated duties and responsibilities (Theguardian.com
2019).
On the contrary, I learnt that Cognitive approach is concerned about the mind of the
learners during the learning process. Here, I can mention of the cognitive learning theory
through the means of social interaction theory. Engagement of the tutor in the learning
processes helps them to identify the appropriate means for conveying the essential
information to the trainees. I support the fact that according to the arguments of John Dewey,
when an individual performs an activity, he reflects on his performance, which helps in
developing certain experiences. Dewey also proposes that this reflection helps the employees

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to achieve solutions for the problems, which they might face during the course of executing
the tasks (Tracey 2016). In case of Tesco, I feel that Dewey’s concept of experiential learning
is productive in terms of enhancing the professional skills, abilities and competencies of the
employees.
I also feel that Humanist approach of learning involves the concept of pedagogy and
andragogy, indicating the interaction of the individual with the society. Pedagogy relates
with the traditional methods within which the individual in trapped. In this context, I think
Freud’s stages of human development is relevant. Andragogy can be considered as the
desperate means adopted by the individuals for gaining an escape into a place suitable for
him. According to my opinion, this desperation indicates the freedom, which the learners
need from the traditional and stereotypical methods. As per the opinions of Kirwan (2016),
this freedom, further, develops new experiences for the learners, enhancing his professional
skills, abilities and competencies. In this context, it can be stated need assessment is crucial
before planning for the training to be provided. Informal nature of support within the training
is adopted by Tesco managers, which improves the stability in the relationship with the
employees.
In terms of the learning and development, I am eager to state that Tesco believes that
customers and the employees are the agents towards achieving growth and development. One
of the efficient ways to achieve large scale customer satisfaction is “value for every penny
invested in availing the products and services. The managers are aware of the fact that
comfortable working conditions and job satisfaction are the agents, which help in extracting
the required labour (Srivastava and Dhar 2015). I feel that prospective offers to the
employees results in quality output, indicative of enhancement in the productivity. Strategic
approach is exposed towards the provision of training to the employees. Identification of the

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training needs is the initial step. This is done through the means of involving the employees
in various kinds of seminars and lectures.
After the assessment, training programs are designed. Within this, I can state that
objectives are developed. Components of the training are identified through the
conglomeration of specific methods. Once the assessment, conglomeration and identification
is completed, they are implemented in order to detect gaps and challenges, which might act as
obstacles within the process of enhancing Tesco’s productivity. Typical example of this is
Personal Development Program, in which I was involved. These programs enhanced my
personal skills, competencies and abilities of the employees (Torraco 2016). One of the
positive aspects is the interaction of the managers and the employees to fill in the gaps at the
earliest to maintain the balance between the activities.
At the initial step, the trainees are made aware of the history and achievements of
Tesco. Here, I can cite the induction training, where I learnt that the trainers take up the issue
of working system, which includes policies, ethical code of conduct and safety measure,
which they have to follow. One of the essential training aspects in this stage is organizational
behaviour, which makes the employees a better human being.
I learnt that the development of the employees at Tesco is completed through three
steps: apprenticeship in retail, options and twist. Retail apprenticeship provides employees
with the opportunity to enhance their preconceived skills and qualification through
recognition by CITY and GUILDS. The program starts in September in the selected stores
and lasts for one year. Options cater to the needs of the employees, who intend to get
promotion within the organization. I found that flexibility of the trainers helps in catering to
the personal needs of the employees in terms of enhancing their skills, expertise and
knowledge. The duration of the program is from 6 months to 2 years. Twist is the program

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where the managers visit the store and monitor all of the operations for five days
(Tescoplc.com 2019). Consistency in this activity helps in detecting the areas, which needs to
be improved for upgrading the standards and quality of the operations.
I can state that other development programs are Store Development Programs and
Commercial Development Programs. Store development programs require the trainee to
attend all the examinations for attaining the university affiliated degree. In the 2 days
programs, a team leader is appointed on day 1 for helping the trainee to enhance their skills in
personal and professional development along with retail management.

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