The purpose of this report is to assess the knowledge of human resource management (HRM) and the application of human resource practice in a particular organization. The enterprise selected for this study is Tesco plc. HRM refers to the procedure of hiring and selecting workers, training and development, managing wages, providing benefits as well as incentives and assessing performance of the employees at each level (Hendry 2012). This study focuses on the purpose as well as functions of HRM in the selected enterprise. Tesco’s approaches to recruitment and selection as well as their strength and weaknesses of various approaches are also discussed in this study. Tesco’s approach towards work for planning, selection process and performance management are also explained in this study. The approach of Tesco as well as effectiveness of workers relation is also highlighted in this report. This assignment also reflects on the vital areas of employment legislation within which Tesco should work. Furthermore, brief assessment of procedure and rationale for conducting proper HR practices.
Tesco plc is one of the biggest multinational groceries and merchandise retailer that is headquartered in UK. This enterprise was founded in the year 1919 by Jack Cohen. It has been tanked as the third biggest retailer across the globe in terms of profit and ninth biggest retailer in the globe in terms of revenue. This company has diversified geographically into several areas which involves- retailing of books, electronics, financial services, internet services and telecom. It has been listed in the NASDAQ as well as in Irish Stock Exchange. At present, this organization has been operating 5008 stores across the globe and employing near about 472,000 workers worldwide (Tesco plc. 2018). The main vision of this enterprise is to be the highly valued business by the communities at which they operates, customers they serve and the commitment they makes with shareholders. The mission statement of this enterprise is to create value for their customers in order to gain loyalty and trust for lifetime.
HRM has huge significance in an organization. It helps the enterprises to manage their workers within a planned as well as coherent framework that reflects business strategies. It also aids to guaranty different aspects of the people’s management that usually reinforces in developing performance as well as behaviors required to attain success in business. HRM mainly plays strategic role in managing employees as well as workplace culture (Bratton and Gold 2017). Effective HR practices contribute largely to the direction of the enterprise as well as accomplishment of targets as well as objectives. The HRM of this enterprise mainly includes several activities such as recruitment of talent analysis, programs for retaining employees, provision of good business environment and assuring that all workers are treated equally. It has been opined by Briscoe, Tarique and Schuler (2012) that, increasing workers self-worth is one of the valuable tools in becoming successful HR practitioner. In addition to this, Tesco’s HRM also motivates the employee in order to maximize potential for higher profit returns within the business. The HRM functions of this company are mainly utilized for the purpose of training, motivating and recruiting its workers according to their requirements such that the employee’s performance increases and this outcome in highly satisfied customers. This enterprise’s mission is to coordinate individuals within the enterprise for achieving its business targets.. This enterprise mainly analyses the trends of the market on regular basis for recognizing the customers, their demand and other satisfying factors.
The HRM team of this company has been working with the philosophy of implementing entire workforce in a proper way to facilitate develop its overall performance. In Tesco, HR managers are performing different roles as well as delegate duties to manage the laborfoce as well as promote teamwork. However, working as a team has been the basic principles on the basis of which functioning of HRM is framed. The main functions of HRM in this enterprise is to recruit and select suitable candidate in the company. Tesco’s HRM fill the vacancy by looking at the internal Talent Plan.
The strength as well as weakness of utilizing external recruitment in Tesco plc are explained below-
The strengths as well as weakness of internal recruitment approach are given below-
As recruitment includes attraction of right applicant’s standard to apply for vacancies, Tesco makes advertisement for jobs in various ways. The procedure varies based on the availability of job. Tesco overviews at internal talent plan for filling up their vacancies. Tesco advertises vacancies post on intranet if no suitable people applies for vacancies post. This company also advertises vacancies for external recruitment through vacancy boards in the stores. The applications are also done online for the managerial positions. The applicants selected will have interview at the assessment center for final selection stage.
Townley (2014) opines that recruitment refers to the method that helps the enterprise to assess which department needs new workers. Lad and Das (2016) states that Tesco has adopted a strategy to recruit right amount of individuals for right post in order to attain the objective of business. In order to do so, Tesco has developed step- by– step approach for selecting as well as recruiting workers for the managerial as well as operational roles. In addition to this, this enterprise has also developed proper workforce planning for meeting the future requirements. The HR management of Tesco selects workers based on their numbers, locations, skills and qualifications. Few researchers has found out that Tesco applies several methods for advertising vacancies. The recruitment procedure of Tesco largely depends on “internal Talent plan “program for filling the post. The organization utilizes internal advertising within intranet. Sanders and Yang (2015) cites that selection process can also be defined as the procedure of selecting best candidates from total list of applicants. Narlusi (2015) points out that screening of candidates has been one of the vital aspects of selection process. This process helps this enterprise to make sure that each selected workers have proper qualification based on job requirements.
This enterprise always adopt cost – effective approach for attracting qualified as well as skilled individual. Implementation of this approach facilitates this organization to select appropriate candidate for its job. Moreover, in order to reduce cost of recruitment process, this organization mainly depends on the internal recruitment procedure. The HR management of Tesco always tries in selecting employees within its workplace for higher post since they needs less orientation and training. On the contrary, there are also few benefits of the external recruitment process that this enterprise adopts. For instance, new individual that the company recruits also facilitates to bring in new perspectives as well as ideas to the enterprise.
According to Sanders and Yang (2015), workforce planning is crucial for every organization as it helps to meet future demand of staff, meet shortage of skill , recruit new candidates for filling vacancies and provide user –friendly method of selecting for job. Tesco uses workforce planning approach for establishing demand for the new staff. This takes into account both non- managerial as well as managerial positions. Tesco’s planning process mainly runs every year from February. Tesco also makes quarterly reviews in August, November for adjusting its staff level as well as recruit based on recruitment (Nankervis et al. 2013). Furthermore, it permits Tesco time as well as flexibility for meeting demands for workforce and strategic objectives of the business. Tesco also practices talent planning for motivating workers to focus on their work.
Training and development refers to the acquisition of knowledge as well as skills that is provided to the person for carrying out specific task. Moreover, it also benefits the workers in various ways such as- by helping their ownership sense and facilitating them to become more productive as well as flexible (Schuler and Jackson 2014). Tesco has structured as well as flexible approach towards training and development that adapts to the requirement of the individuals. It also permits the individual identify as having full potential as well as desire to play different role in taking part in training and development in their skills and leadership. It also offers its workers on- job as well as- off job training.
The system of performance management is to assure that the business targets are met by workers. This strategic tool helps Tesco to concentrate on the workers and the business operations of the enterprise (Truss, Mankin and Kelliher 2012). Performance management for this company refers to an inclusive procedure that mainly encompass strategic target as well as group competencies and performance purpose. Tesco adopts several performance management approaches in order to increase efficiency of its workers. These approaches involves- feedback mechanism, provision of pay and reward, performance enhancement plans for its workers including- training needs, coaching and mentoring and also the future appraisal plans including promotion, future workers growth plans.
Tesco’s approach towards rewards system is mainly guided by the framework of general objectives as well as principles that are- attract, motivate, recognize, and align (Alegbejo 2013). Tesco plc has launched Clubcard loyalty scheme and thereby creates new tiered approach which provides them higher expenditure consumer’s access to huge range of rewards. Other reward schemes that Tesco offers to its employees involves- incentive schemes, pension schemes, deals on the retailing services, fair remuneration schemes and so on.
Cascio (2018) found out that Tesco Plc has adopted top down communication approach for certifying effectiveness of its employee’s relations and employees engagement. Top- down communication approach refers to the method of communication where information within the enterprise are disseminated from high degree of enterprise hierarchy and the information varies based on enterprise hierarchy level. This type of communication is also referred to as downward communication. It has been stated by Barak (2016) that, the HR management of Tesco tries to engage with its workers through this effectual downward communication approach. This in turn helps the employees of Tesco to receive as well as understand information and messages in better way that the management offers to them. Besides this, downward communication system also provides the enterprise various kinds of profits including- enhanced performance, build good relationship with employees, develop morale and improve business performance.
Few characteristics of flexible entity’s structure at Tesco are- shared friendly culture, decentralized structure, flexible work environment, and high employee’s empowerment. Flexible work environment in Tesco aids to increase adaptability for change (McGurk 2014). Tesco holds flexibility work condition under four various heads such as- integration, adaptability, commitment towards employees and quality. Tesco has also signed up to retail pioneers time wise program that aims to facilitate all the employees to maximize benefits workplace flexibility. This program helps Tesco to maximize productivity benefits of the workplace flexibility. Moreover, it also identifies operational constraints on the working flexibility and redesign jobs for overcoming nay difficulties.
Lake (2016) opines that business is required to be consider flexible working practice for the employees. Tesco has been making use of few approaches in combination with flexibility. One of such approaches are reducing the time of working hours in order to provide benefit to its employees. The reason behind their adoption of such approach taken by Tesco is to help them to maintain their family life in better way. In addition to this, adoption of employers of choice by Tesco increases the morale of their employees to concentrate on their work. This in turn increases overall productivity of the business of Tesco and increases growth of the organization.
Employee legislation refers to the law which mainly governs employment within the enterprise with all the employees working there. It also considered as the minimum standards of employment for the workplace needed by law. It involves several aspects of employment such as – minimum age, resolving disputes, hours of work, leave from work and so on. According to this cat, the employees of any company are free in developing practices as well as policies that is permitted under this law. There are some key areas of the workers legislation within which Tesco must work. These legislation should include vacation pay, working time regulations, deductions, employment of candidate under 18 and so on. It has been seen by the HRM of Tesco that its employers are not satisfied with working structure of the enterprise. For this reason, they strategizes to implement performance management program. The HRM of Tesco should work under these two legislation in order to attract large number of workers in the business. Moreover, it will also help this company to gain competitive advantage over its rivalries and maintain its brand image in the business environment.
Tesco seeks competencies for recruiting both for immediate job role as well as for development over long term in supporting growth of business. The HR managers of Tesco often utilize standard documentation for matching job roles with individual skills. The HR managers of this company combines individual specification within job description by utilizing skills as well as competencies model. The recruitment managers also compares online application forms with respect to skills the role requires. After that the candidates have face- to face interview with the Hr managers.
It has been viewed from few evidences that the candidate who gets selected in Tesco attends its assessment center. The assessment center take place within store and are mainly operated by HR managers. They provides assistance in offering stability in selection procedure. The applicants are given numerous exercises that comprises of team working activities and problem solving method. The individuals are generally approved by internal assessment center and also have interview with them. The HRM practices application stages include- making capacity assessment, forecasting requirements, developing strategies and analyzing gaps.
It has been evident from few studies that Tesco recruitment and selection process includes two methods- external as well as internal. The HRM of Tesco first advertises jobs in various ways that varies based on availability of jobs. They evaluates the internal talent plan for filling up these vacancies. If no suitable employee in this Talent Plan is there, then they advertises all these post on intranet. Furthermore, in case of external recruitment, Tesco Plc advertises the vacancies its post through vacancy boards in the stores, websites and so on. The applications are mainly made online for the managerial positions. They also seek cost – effective method for recruiting skilled employees in the business (Lamba and Choudhary 2013). While selecting the applicants, Tesco adopts screening method since it assures that the candidate selected for interview have best fit according to requirements of job. The applicants who gets selected in the screening method attends on the assessment center, which occurs in the store by the managers. It also provides them consistency in selection procedure.
Tesco must focus on conducting proper HR practice in order to resolve the issues and challenges occurring in its business. Some of the vital issues that has been arising within HR practices of Tesco are – communication, consultation, rewards and systems and so on. Even though Tesco adopts some effective HR practice, the managers of this organization faces few issues regarding this (Story et al. 2014). However, HR managers of Tesco must consult with both the workers and upper management in order to mitigate these issues and properly conduct HR practices within the workplace.
The employment protection has been one of the main areas which directly affects the HR procedure within Tesco. This organization adheres meeting with health and safety needs of employees as per Health and Safety at Work Act 1974. In any circumstances, if employers in Tesco fails in meeting with enterprise requirements, then it adversely impacts the HR mnanagement. The HR managers are penalized for disobeying law in case of failure. Tesco following rules in respect of promoting equality in workplace and other legislations has helped the enterprise to develop wider employees base.
Recent evidences reflect that HR management of Tesco forms certain compensation of strategies relating to employees relation aligning with business strategy. HR management trains employees for sustaining enterprise competitiveness, which in turn aids the enterprise to manage strategic plan. Moreover, talent planning also aids to motivate employees to motivate their path within the business. Thus, this strategy influences Tesco’s business decision making.
The HRM practices within Tesco is mainly applied in different forms of work such as- employees engagement, performance appraisal, adopting as well as controlling within employees, performance related pay, supervision of working process and dealing with their customers. The HRM practices in this company has been tied into problems pertaining to consultation as well as communication. Tesco tries to know the view of their employees issues that impact them in the long run. They applies HRM practice in social media recruitment, mobile recruitment and applicants tracking system.
The rationale behind application of HRM practices in work- related context within Tesco is to enhance overall growth and performance of the business. HRM practices are applied by Tesco with the aim to gain competitive advantage over its rivalries. In addition to this, another rationale of applying HR practice within this business is to motivate and retain employees for long run.
Conclusion:
The HRM department plays crucial role in Tesco. The company has well- documented as well as forward thinking HR department that mainly aligns with the aims of business. Through effective implementation of strategy by the HR managers, Tesco diversifies its portfolio of business across the globe. Also, it helps Tesco in attracting more workers and retail existing workers in the business. Indeed, if Tesco wants to maintain good reputation in business environment, then the HR department should continuously measure its performance in order to keep its staffs and adapt to changing requirements and expectations.
References:
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