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Human Resource Management: Tesco PLC

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Questions:

Task 1:

a) Identification of the approach management adopted by Tesco.  Critically examine the difference between human resource management and personnel management

b) Explanation of detailed functions of human resource management, and assess its contribution to organisational objectives 

c) Evaluation of the roles and responsibilities of line managers in human resource management in the organisation 

d) The HRM related legislation / legal regulations, and its impact on the HRM processes of the organisation  

Task 2:

a) Analysis of the reasons for HR planning and outline of the stages involved in the HR planning processes in the organisation 

b) Comparison of the recruitment and selection processes of two organisations and evaluation of the effectiveness of the recruitment and selection techniques  

Task 3

a) Meaning of job evaluation, evaluation the process of job evaluation and other factors determining pay used within the organisation  

b) Examination of different methods that the organisations use to monitor the performance of employees  

c) Assessment of the effectiveness of the reward systems in place in the organisation and also assessment of the link between reward and motivational theories  

Task 4

a) Identification of the reasons those could cease employment within the organisation and details of the legislation / regulation framework that can have impact on the employment cessation arrangements in organisation   

b) Explanation on the employment exit procedures used by the two business organizations   

 

Answers:

Task 1:

a) Identification of the approach management adopted by Tesco.  Critically examine the difference between human resource management and personnel management

Tesco is not only one of the leading retailers of UK but also, a well diversified business group which is also conducting other forms of business operations. Thus, to talk of the Tesco group it is considered to be a wide extensive group and has employed more the 300000 people only within the domestic range of UK. The organizational culture has been developed on the philosophy that the company wants to give its best to the customers as well as to the entire team employed by Tesco. Ranging from the staff level employee to any senior managerial employee, all are equally treated and the company is trying to provide the best that it can for its people. Therefore, from the approach adopted by Tesco, towards the employee management reflects the qualities of human resource management approach. Moreover, Tesco has always valued the aspects of working as the team in the organization. The human resource team management team of the company is working continuously as; they “believe everyone should benefit from the best support and training we can provide, and aim to develop each to the best of their abilities” (People Tesco Careers, 2016).

The concepts of human resource management and personnel management are both interrelated from the sense of managing the employees in the workplace in the manner so as to help enhance the productivity of the organization, as the whole. However, there are some differences between the two management concepts. The aspect of human resource management is accounted as the upgraded form of personnel management as opined by (Armstrong & Taylor, 2014). The human resource management is a much broader management thought as compared to personnel management. As personnel management mainly deals with management of work force and association with the business organization mainly whole, human resource management deals with the proficient management of human asset of the organization and gain greater productivity.

The employees of the business are treated as the inputs by the management in the process of personnel management but, human resource recognise the workforce as the business assets. Thus, the human resource management mainly focuses overall strength generation for the purpose to enable the entire force to work for the common goal of the business to meet with the fundamental objectives of the business. Under personnel management the incentive system is followed for completing more tasks by the employees. However, under the human resource management system the leaders aim for motivating the entire workforce so as to help develop the overall performance of the organization, in terms of profitability and value (Alvesson & Willmott, 2012). The jobs and tasks are designated to employees depending on the division of the labour but, in human resource management the different teams and groups are considered as the base job designing. The human resource management proceeds with the strategic outlook while, the personnel management deals with the management workforce on the daily basis in the organization.

 

b) Explanation of detailed functions of human resource management, and assess its contribution to organisational objectives

The human resource management team of Tesco is working with underlying philosophy of integrating the entire work force in the way to help develop the overall performance of the Tesco group. In Tesco there are different level HR managers who are performing the various roles and delegating their respective duties in managing the work force and promoting the concept of team work. Working as the team is one of the main principles based on which the functioning of the HR management has been framed (Aguinis, 2009). Further, Tesco has always laid emphasis on continuous training and development of the employees, something which they take very seriously and they also believe that development is the gateway to opportunities. Therefore, the continuous training help educate the work force leading to skill development of the employees and this is also directly boosting up the performance of the Tesco in different sectors of business in UK. Thus, the human resource strategies framed by Tesco’s management group are instrumental with the overall goal attainment objectives.

Moreover, Tesco has launched the program decades back that the HR management team try to get feedback from the employee staffs, to assess the thinking of the people working with the organization and about their expectation from the company. Therefore, the HR strategies are also framed based on the feedback of the staffs and Tesco also make sure of the fact that the employees should have a clear idea of the business with which they are working. All such efforts are made focusing on strengthening the relationship between the company and employees and promote mutual understanding and respect (Tesco Report, 2012). Tesco has always followed the consumer centric approach and the functioning of the human resource management of the company has been shaped in the manner that employees also imbibe the same philosophy in them.

c) Evaluation of the roles and responsibilities of line managers in human resource management in the organisation

The line managers of Tesco are responsible for managing employees by the way of directly interacting with them on the daily basis. The line managers of the organization are responsible for carrying out the daily operations of the business by the way of delegating the tasks to the employees, maintaining regulations and get the tasks done by the employees. The line managers are also known as the immediate managers in the business organization and they have ample responsibilities ranging from planning the daily tasks to interacting with the employees and motivate them to execute the task in the most efficient manner (Bamberger, et al., 2014). In this company the line managers are playing a pivotal role and they are acting as the representative of the entire human resource management team of the organization.

Apart from administering the daily operations of the organization the line managers are also responsible for conducting the interviews and they also take care of the following duties after the interview process. In Tesco the line managers and along with other panel managers have the responsibility to organize for the training and development secessions for the different groups of the employees. Moreover, the duty performance measurement of the employees is also executed by the line managers. As they are given with the authority of performance measurement and take the respective actions based on the outcome and rules of the organization thus, they are considered to be the power house organizing and managing the work force.    

 

d) The HRM related legislation / legal regulations, and its impact on the HRM processes of the organisation

There are number of legislative rules under UK employment law that the HRM teams of the business organizations need to consider while formulating the operations of the human resource management in the process of business. Similarly, in Tesco also the HR managers have also frame the HR policies in accordance with laws and regulations. The employment protection is one of the major areas that directly influence the process of HR policy development by Tesco (Tesco.com, 2016). Meeting with the health and safety requirements of the employees is one of the primary factors to be adhered by Tesco and other organizations operating in UK, as per the Health and Safety at Work Act 1974, has ensured the well being of employee’s in every organization. If the employer fails to meet with the requirement the company would be penalised for such failure and disobeying the law.

Then maintaining the equality rules is another primary concern for Tesco and other organizations as; discrimination at the workplace on any ground is an unlawful act. Owing to intensity of the matter the Equality Act 2010 has been enforced by law in order to protect the employees from being discriminated in the workplace. Accordingly the compliance of this rule by the UK business organizations is equally important in order to continue with the smooth operations of the business (Berkes, 2009). From the HR management approach this is evident that Tesco has been following these rules and regulations precisely in respect to health and safety, promoting equality at workplace and also other related legislations. The compliance of the same is accounted to be another reason that has helped the organization to develop such wider based of employees.    

Task 2:

a) Analysis of the reasons for HR planning and outline of the stages involved in the HR planning processes in the organisation

There are ample reasons for which the HR planning process is conducted by the organizational managers but, the main reason is to the make the effective utilization of the human assets present in the business organization. The human resource is recruited by the organizations in order to meet with the objective of requirement of work force in the business and planning acts like a tool that help the organizational managers meet with the desired objective and goals of the business. Planning is the base of mobilizing and managing the entire work force (Bratton & Gold, 2012).

By the way of HR planning the organizational leaders are able to manage the human resource in the most organized and systematic manner and this also helps the managers to make the process of management to be more flexible and responsive in nature. The planning is must for the purpose to ensure the continued operations of the company for the longer run as; managing the availability of manpower for the present as well as for the future is ensured from effective planning (Lewis, et al., 2011). Moreover, selecting the best suited person for the job is another essential duty which is to be met by the HR managers and planning helps them to select the best suited talent for the organization. The planning process assists the managers in identifying the skill requirement of the work force and thus, organizes training and development programs as per the need and requirements.  

The HR planning process in Tesco takes place in the precise and constructive manner and the following certain key steps and measures. In the initial level the fundamental objective of the business is ascertained in order to set the direction and objective of planning the process. Then the present resource of the organization is evaluated in terms of their performance, ability and skills based on the human resource data storage and records. Then the managers of Tesco are able to analyze whether the present source is adequate in meeting with the requirements of the business or they would need for manpower (Cascio & Boudreau, 2010). In case of any further requirement of human resource owing to ever growing approach of Tesco, the HR manager plans out the interview process and try to accommodate candidates for the jib role from the available sources. Then after appointing the required workforce in the organization they plan out for their training and development programs. Thus, the process goes on in the organization and in the process of planning the HR strategies and policies are also taken into consideration for the effective formulation and functioning.

 

b) Comparison of the recruitment and selection processes of two organisations and evaluation of the effectiveness of the recruitment and selection techniques

The recruitment and selection processes of Tesco and ASDA have been analyzed in the following.

The recruitment and selection process of Tesco involves a number of stages and the entire process has been framed by the organizational leaders of Tesco in the challenging manner owing to some key reasons. The main reason of following a challenging process is to ensure that the HR managers are able to select the best suited candidate for the job and would fit with the culture Tesco.

Initially the screening process takes place where the applications forms are evaluated by the panel managers and after passing the screening test and on passing the same the candidates are called for the next level. In the immediate level a Psychometric test is conducted where the candidate is asked a number of questions to assess the potentials, communication skill, strengths, weakness and numerical ability and attitude (Tesco.com, 2016).

Then the senior managers would take the charge and a structured interview is conducted, following to this a number of presentations is provided to the candidate in order to help the individual to assess operations of the company. Further the candidate is allowed to meet with some of the members of team and allowed to ask questions so that the candidate would be able to know the work culture in Tesco. Finally, another day the candidate would be sent to the assessment centre and four selectors would be there to judge the team of eight candidates and thus, the most able candidate is selected.   

In ADSA the selection process takes place from registering applications through online recruitment system of the company. The HR team of ASDA makes their selection for the right candidates and then final assessment process or the interview is conducted. In the process of registering detailing with personal specification and job explanation is essential for allocation. Then the candidates would be given the chance to display their skills and abilities in ASDA Reality as the assessment centre (Asda, 2016). Thus, the two organizations are carrying on with the recruitment processes.  

This is to mention here that both the leading retailers of UK are following, more or less a similar way yet, the recruitment and selection process in ASDA is much simpler as compared to Tesco. However, the selection process of Tesco is more effective.

 Task 3

a) Meaning of job evaluation, evaluation the process of job evaluation and other factors determining pay used within the organisation

The job evaluation is the process of analyzing the different jobs roles in the organization and based on which the value or worth is ascertained. The skills required for the job and its magnitude for the business and society decide the worth mainly in monetary term. Thus, from the view of business the employment cost or pay is decided, that the company is liable to pay for the particular service provided by the employee for executing a particular job. In simple terms job evaluation is the process to decide on the wages and salaries of the employees in the organization (Cummings & Worley, 2014). In Tesco the skills and qualification required for the particular job forms to be the basis of deciding the pay and also the industry standards are also considered. Further the incentive and appraisals are also provided based on the performances of the employees and thus, the pay policies of the company are decided.

b) Examination of different methods that the organisations use to monitor the performance of employees

Monitoring employees’ performance has been one of the primary practices conducted by the HR managers in order to manage the performance of human assets and thus, strengthen the overall performance of the business. In case of Tesco in some of the departments the score card system is followed so as to measure the improvements made by the employees (Dessler, 2009). Another method used by the company is the feedback system from the consumers about their in store experience and hospitality of the staffs towards the consumers are all evaluated from  time to time in order to monitor the performance of the employees.

The employees’ performance monitoring processes of ASDA is almost similar to Tesco, however, the company is also using the 360 degree assessment system and are also providing their employees with the self monitoring tools. Under the process of 360 degree evaluation a series of sources are used for analyzing the performance of the employees such as, from the line manager, peer reviews and other subordinates. This method is considered to be the overall performance management method (Flamholtz, 2012). The self monitoring tools are provided to the employees with the help of which the employees are able to monitor their own performances on the daily basis and based on the outcomes they are able to upgrade their performances.     

 

c) Assessment of the effectiveness of the reward systems in place in the organisation and also assessment of the link between reward and motivational theories

The use of reward system in the business organizations is considered to be an effective way of boosting up the morale of employees by the way of recognizing their efforts through providing rewards. The rewarding system has been recognized as the key of gaining employee satisfaction and motivates the employees to perform better. The rewarding system is considered to be one of the traditional management practices followed by the HR managers as; the reward system symbolizes the effort made the company to recognise and appraise the contribution of the employee to the business growth. Similarly, in Tesco also the HR managers are offering different rewards based on the policy and culture of the organization. The rewarding system is mainly used for encouraging the employees to perform better and help in the firm to enhance the employee retention ratio (Gatewood, et al., 2010).

Further, it has been mentioned in the traditional theory of Maslow’s and Herzberg that rewarding system acts like additional incentives which is used by the organizational leaders to gain employees’ involvement. Moreover, taking into account the growth of competitions in the retail market of UK the firms are thriving hard to outperform the market, this is where the organizations need the full support and assistance of the employees to help the firm to meet with the such objectives and thus, gain competitive edge (Gilmore & Williams, 2009). Therefore, the reward system is directly associated with the goals attainment factors of the business. In Tesco the different forms of rewards are offered to the employees in cash as well as in kind, depending on the situation, policies and culture of the organization. The rewarding system has been recognized as the way of fostering positive relationship between the company and its workforce, as considered by the organizational leaders of Tesco.    

Task 4

a) Identification of the reasons those could cease employment within the organisation and details of the legislation / regulation framework that can have impact on the employment cessation arrangements in organisation

There are number of reasons which can result in the cessation of employment in the organization such as, expiration of employment period with the organization, on the disciplinary grounds, under performance, death of the employee and also if the employee wants to leave the organization. There are number of reasons of cease employment but, there are also laws and regulations which are being framed so as to safeguard the interests of the employee as well as of the business organization in the process (Harzing & Pinnington, 2010). Whatever may be the reason but there should be a proper way to be followed and in case of Tesco the company is following the employment laws of UK and mainly the Employment Right Act 1996 and the set of labour laws are mainly adhered.

If the company ceases the employment of any employee in the unfair manner the company would be penalized by the law and also the employee cannot terminate the employment deal without any proper reason. Both the parties need to follow the minimum notice period as conditioned in the employment latter of the company. This the right of both the parties to provide the notice period and the notice period is also determined by the law as per section 86 and 87 under Employment Rights Act 1996. Therefore, the ground of dismissal should be based on the viable factors and following the guidelines provided by law (Employment Rights Act 1996, 2016). In case of any negligence or disobeying of law might endanger the reputation of the organization, resulting in lawsuits from the end of employee. Similarly, there are certain obligatory factors which are to be met by the employee as; set by articulated by UK law under Employment Act.   

b) Explanation on the employment exit procedures used by the two business organizations

From the general view point mainly the resignation mainly comes from the end of employees expecting the cases of dismissal of employees on the disciplinary grounds and lack of performance. After the notice served from the end of the employee for resignation, initially the company follows the method of retaining and provide options of salary increments and compensations. Despite, the option if the employee decides to leave then the employee would have to face an exit interview process with the store and personal manager of Tesco and then the person would be provided with all the required paper works and documents and also clearing all the payment dues of the person and arrangement of the pension fund (Guest, 2011). The employee too needs to return the identity card with a seal of company and in case any uniform provided by the company. Thus, the exit procedure takes place on the mutual ground. A standard norm or process is followed by the companies as the exit procedure; therefore, ASDA is also following an equivalent exit procedure like Tesco, conforming to the legal guidelines.

 

References

Aguinis, H. (2009). Performance management. Upper Saddle River, NJ: Pearson Prentice Hall.

Alvesson, M., & Willmott, H. (2012). Making sense of management: A critical introduction. Sage.

Armstrong, M., & Taylor, S. (2014). Armstrong's handbook of human resource management practice. Kogan Page Publishers.

Asda, 2016, [online] Asda.jobs. Available at: https://www.asda.jobs/search-all-vacancies/ [Accessed 9 Mar. 2016].

Bamberger, P. A., Biron, M., & Meshoulam, I. (2014). Human resource strategy: Formulation, implementation, and impact. Routledge.

Berkes, F. (2009). Evolution of co-management: role of knowledge generation, bridging organizations and social learning. Journal of environmental management, 90(5), 1692-1702.

Bratton, J., & Gold, J. (2012). Human resource management: theory and practice. Palgrave Macmillan.

Cascio, W., & Boudreau, J. (2010). Investing in people: Financial impact of human resource initiatives. Ft Press.

Cummings, T., & Worley, C. (2014). Organization development and change. Cengage learning.

Dessler, G. (2009). A framework for human resource management. Pearson Education.

Employment Rights Act 1996., 2016, [online] Legislation.gov.uk. Available at: https://www.legislation.gov.uk/ukpga/1996/18/part/IX/crossheading/minimum-period-of-notice [Accessed 9 Mar. 2016].

Flamholtz, E. G. (2012). Human resource accounting: Advances in concepts, methods and applications. Springer Science & Business Media.

Gatewood, R., Feild, H., & Barrick, M. (2010). Human resource selection. Cengage Learning.

Gilmore, S. and Williams, S. (2009). Human resource management. Oxford: Oxford University Press.

Guest, D. E. (2011). Human resource management and performance: still searching for some answers. Human Resource Management Journal, 21(1), 3-13.

Harzing, A. W., & Pinnington, A. (Eds.). (2010). International human resource management. Sage.

Lewis, J., Packard, T., & Lewis, M. (2011). Management of human service programs. Cengage Learning.

People | Tesco Careers. 2016, [online] Tesco-careers.com. Available at: https://www.tesco-careers.com/Jobs-in-our-Office/Career-Path/People.aspx [Accessed 9 Mar. 2016].

Tesco Report, 2012,Tesco PLC - Annual Report 2012 - Strategic review - Chief Executive's review. (2016). [online] Tescoplc.com. Available at: https://www.tescoplc.com/files/reports/ar2012/index.asp?pageid=17 [Accessed 9 Mar. 2016].

Tesco.com., 2016, [online] Tesco.com. Available at: https://www.tesco.com/recruitment/html/careers/selectionprocess/selectionprocess.htm [Accessed 9 Mar. 2016].

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