The Human Resource Management (HRM) is referred as the strategic approach by the organisation for effective management of the workforce for helping the business to gain a competitive advantage in the industry through increased productivity. The HRM is mainly designed for maximising the performance of the employees while in services for fulfilling the strategic objectives of the employer. In this report, the purpose and scope of HRM are discussed with proper evaluation of the key elements of HRM required by Tesco. Further, the internal and external factors responsible for decision-making in HRM in Tesco is analysed and the HRM is applied in work-related context in Tesco to understand the way it manages employees and perform its duties.
As a Human Resource Manager in the Tesco, there are various purpose and functions to be fulfilled for effective Human Resource Management (HRM) within the organisation. As mentioned by Albrecht et al. (2015), Human Resource Management (HRM) is the process of employee management within an organisation which includes hiring, training and motivating employees. In Tesco, the HRM by executing this function is able to maintain a talented workforce which allows the organisation to have adequate and experienced manpower to produce adequate products and provide effective consumer services allowing the organisation in meeting their business objective of achieving increased profit and productivity. As per Jackson et al. (2014), HRM of an organisation executes decision-making based on the planned intention of the company to frame effective employee policies, develop proper employee relations, and arrange rewards and appraisal employees. In Tesco, the HRM performs similar actions for effective decision-making to ensure proper management of the valuable assets of the organisation. This allows Tesco to have a positive work environment where employees work with added zeal and inspiration in meeting the business objectives of the organisation. As asserted by Nankervis et al. (2016), the key purpose of the HRM is to motivate coordination of employees to accomplish better productivity and profit for the organisation. In Tesco, they also have a similar purpose according to which they motivate coordination among employees to help them work efficiently for increasing productivity and profit for the organisation (www.tesco-careers.com, 2018). In order to fulfil the purpose, the Tesco arranges employee training and development, rewards, appraisal and others.
The main functions of the HRM in the Tesco are to organise and design job structure, plan training and development of employees along with recruitment and selection, directing employees to work, control employee motivation, differentiating between best practice and best fit and others (www.tesco-careers.com, 2018). The execution of the HRM functions makes Tesco experience effective workforce management which helps them to meet the goals of the organisation for achieving improved profit and productivity. As per Collings et al. (2018), hard model of HRM has the focus to treat employees as a resource and to create rationalism of strategic fit and places with emphasis on the performance management and implementation of instrumental approach for managing individuals. The hard model of HRM is used by Tesco for recruitment and selection of appropriate and skilled employees at work for successfully improving the productivity and profit of the organisation. This is because it allows Tesco to have required number of experienced and talented employees who work with added zeal and better knowledge in meeting the objectives of the organisation. As argued by Lapiņa et al. (2014), soft model of HRM has the focus to motivate trust and commitment of employees through motivational programs and rewards. In this model, the employees are treated as valuable resource of the organisation. The Tesco uses this model to manage the payroll of their employees and arrange rewards as well as appraisal based on the employee performance. This is because by performing this function Tesco is able to provide value to the employees that motivate them in working with better efforts for the organisation in meeting the business objectives.
The “Best Fit” informs the organisation to align the HR strategies along with organisational strategic (Marchington et al. 2016). Thus, Tesco uses the “Best Fit” approach in creating proper structure, making changes, maintaining behaviour at work and framing work culture by aligning with the company’s strategic approach where both the employees and the organisation is positively affected. This allows Tesco to have a systematic management of workforce and develop positive relationship between the management and employees which assist the employees to have effective help in resolving problem at work. This acts to remove barriers in meeting the business objectives for the organisation allowing the employees in successfully meeting the business goals. The “Best Practice” informs that there are certain HR activities which are universally supported by the organisations helps them reach competitive advantage regardless of the settings of the industry or organisation (Brewster et al. 2016). Tesco uses “Best Practice” approach to focus on improving employee security, rewards and appraisals, training, information sharing and others to attain a competitive advantage in the industry. This allows Tesco to have a better image and deliver improved consumer services in the industry in comparison to its competitors which attract potential number of consumers meeting their business objective of achieving increased consumer through service satisfaction to earn profit.
The recruitment and selection approach used by Tesco are external as well as internal recruitment. As mentioned by Mitchell et al. (2017), internal recruitment refers to the hiring of employees from internal sources within the organisation. The Tesco uses internal recruitment to hire employees for vacancies who are working within the organisation or those are referred by the existing employees of the organisation. As stated by Edison et al. (2015), the strength of internal recruitment is that the organisation is able to increase employee morale and retention. This is because during internal recruitment the existing employees are either transferred or promoted to higher position in the company where they have better career development opportunities. Thus, Tesco uses internal recruitment which allows strength to their recruitment and selection of the organisation to offer better career opportunities to the existing employees which lead the employees to feel valued in turn improving their morale. This act offer strength to Tesco in making quicker recruitment and retain existing knowledgeable employees in their organisation for ensuring work efficiency and productivity. For example, Tesco has promoted their most efficient employee in one of its stores as Store Manager. This helped Tesco to resolve issues with managing the store and its staffs as the employee promoted know every little bit of the store regarding the way to be managed properly.
Tesco uses internal recruitment because it offers them the strength to execute recruitment and selection in cost-effective process and within less paperwork. The internal recruitment also allows strength to the HRM of Tesco to have familiar candidates for recruitment whose background, efficiency and work ethics are already known to them. This leads Tesco to avoid issues with familiarity of the employee with the organisation’s working terms thus providing them the benefit to have quicker work results. This is because employees who take longer time to adjust with organisation’s environment are seen to show lower efficient work results as they are unable to concentrate on their work (Brewster et al. 2016). As asserted by Gomes et al. (2016), the weakness of internal recruitment is that it prevents the hiring of potential and experienced candidates who can deliver better scope of performance in the industry for the organisation. Thus, internal recruitment creates weakness for Tesco to experience hindrances with finding employees with better job skills to be hired in the organisation. This results them to experience issues with improving work quality as innovative and skilled employees cannot always be recruited through internal recruitment. For instance, recruiting a Store Manager who had experiences in managing retail stores at the store of Tesco where the employee is being promoted would have lead to better store management. As argued by Iglesias and Saleem (2015), weakness of internal recruitment is that it provides limited scope to the organisation to fulfil vacancies. Thus, by using internal recruitment Tesco experienced the weakness that positions remained vacant as one employee is transferred from one position to another the other position remained vacant. Therefore, Tesco also initiated to include external recruitment and selection.
The external recruitment is done by Tesco through the help of employment agencies, professional association, campus recruitment, advertisement and others (Markova et al. 2016). The strength of external recruitment is that it encourages the organisation to have new opportunities to recruit better-skilled employees than their existing ones (Bartneck et al. 2015). Thus, the external recruitment offer strength to Tesco to improve their productivity by recruiting new talents in their organisation who could bring better innovation and changes at work. As asserted by Shammot (2014), external recruitment has the strength to increase the branding of the organisation. This is because external recruitment helps to circulate the name of the organisation in the industry to let other know regarding their activities. The external recruitment offers strength to in selecting the right candidate for the job position and avoid conflicts between employees due to partiality as seen in internal recruitment. For example, the Assistant Store Manager at one of Tesco's store was recruited through an external employment agency to avoid conflict between two employees at the store who equally deserved to be promoted to the post.
The weakness of external recruitment is that it is time-consuming and is costly in nature. Thus, external recruitment offer Tesco to have the weakness of spending extra amount of money in arranging recruitment process which finances could otherwise be used for creativity improved productivity of the organisation. As mentioned by Ladkin and Buhalis (2016), external recruitment has the weakness of hiring candidates who have limited knowledge about the company. Thus, external recruitment offers weakness to Tesco to have employees who take increased time in adjusting with the environment of the organisation thus offering lower work efficiency during the time which would result Tesco to experience lower productivity during the course. As criticised by Khan and Senthilkumar (2015), external recruitment has the weakness of inviting unsuitable candidates and experiences issues of maladjustment by the organisation. Thus, Tesco uses both external and internal recruitment so that one’s weakness is resolved by the other’s strengths to offer the organisation to maintain their position in the industry.
The benefits of different HRM practices within Tesco for the employees and employer are as follows:
Training and Development: The training and career development opportunities provided by HRM of the organisation help the employees to improve their skills and knowledge which lead them to have effective ideas to resolve issues at work that motivates them to execute tasks with efficiency (Tahir et al. 2014). The inclusion of this HRM practice in Tesco benefits the employees to execute and deliver services in an efficient way with innovative nature. This is because training has led employees of Tesco to learn new skills for performing their work with added quality and efficiency. This has benefited Tesco as the employer to enjoy increased productivity and better satisfactory response from the customers regarding their services and goods. For example, Tesco arranges training and development for their new employees to help them get accustomed with the workplace. This is evident from the Apprentice Program developed by Tesco which has further grown by 30% in the organisation allowing its existing 3000 employees to receive effective training for developing better skills in executing their tasks (www.tescoplc.com, 2011).
Reward and Appraisal: The rewards and appraisals provided by the HRM help to make the employees feel valued as their work effort are properly recognised and remunerated (Li et al. 2017). This HRM practice benefits the employees of Tesco to have better morale and motivation as well as commitment to execute tasks. Moreover, the practice also benefits Tesco as the employer to retain employees and manage high-risk coverage at low cost which eases the financial burden on the organisation. This is because of the rewards and appraisal act as an employee benefit for the staffs which motivates them to offer services for the organisation without making much demand during risk protection activity. For example, Tesco offers proper remuneration to the serving employees without partiality under their Employee Rewards Program. They offer rewards to its employees in the form of holiday packages, bonus schemes, discounted motor and home insurance and others. This had led benefit to the employees at Tesco to feel valued to offer more work effort and has benefited Tesco to have increased productivity and work efficiency from employees (www.tescoplc.com, 2018).
Flexible Working: The flexible working assists the employees to properly manage their personal as well a professional life (Galea et al. 2014). The practice benefits the employees at Tesco to maintain a proper work-life balance without experiencing much work pressure. The practice benefits Tesco as the employer to get improved quality services being delivered by the employees that improve their productivity and profit earning. This is because the employees work with dedication as their wish to maintain work-life balance is fulfilled thus making them mentally as well as physically efficient to work with effort. For example, Tesco allows employees to work according to shift at their store to help them have work-life balance (www.tescoplc.com, 2018).
Employee monitoring and performance: The monitoring of the employees by the HRM to assess their performance assist the organisation to identify needs and demands of the employees at work (Bhave, 2014). This is because while monitoring the employer is able to identify the weakness and strength of the employees at work. This practice is beneficial for the employees at Tesco because it leads the key requirement of the staffs to be identified at the right time. The practice benefits Tesco as the employer to execute effective employee management and resolve staffing issues. The employee monitoring also benefits Tesco to resolve conflicts at work and arrange proper remuneration for employees without partiality. For example, Tesco has a compulsory Employee Monitoring program in which each employee is evaluated to understand their needs and demands at work (www.independent.co.uk, 2013).
In any organisation, if the HRM practices are properly executed then it helps to raise their profits and productivity. As asserted by Shuck and Rocco (2014), flexible working hours helps employees to develop commitment at work due to proper work-life balance and for working without work pressure. This result to increase the productivity of Tesco because less employee absentees and turnover is experienced which helps the company to have proper amount of workforce available in time to fulfil the demands of the market within shorter time period than usual. This results Tesco to have time as well as available workforce to increase the number of services and goods to be provided to the consumers thus ensuring increased productivity. This offers profit to Tesco in term of employee efficiency as the work-life balance due to flexible working hours makes their employees deliver quality work effort as they no more feel work pressure or burden. As criticised by Cooper and Baird (2015), lack of flexible working hours creates work pressure on the employees. This is because they do not have an effective work-life balance.
The training and development of employees add to the improved productivity and profit of Tesco because new and innovative skills are being able to be developed by the employees for executing tasks. The improved knowledge and skills result employees to execute their allocated tasks within minimum time providing opportunity for more work to be done within the allocated working time, in turn, helping to raise the productivity of the organisation. As per Chang et al. (2015), employee monitoring helps the organisation to identify where they are facing issues at work which is hindering them to accomplish productivity. This practice is effective for Tesco to identify any issues or conflicts at work which is hindering the determined production of services or goods. The identification leads Tesco to use appropriate strategies to resolve them thus raising their productivity as the problem hindering employees to reach proper production is resolved in this process. It leads to increase profit of the organisation as improved quality services are able to be provided to consumer thus satisfying them to buy more from the organisation.
The delivery of proper employee rewards and appraisals without any form of partiality makes employees to be more committed to work (Ghosh et al. 2016). This is because employees feel their work effort is being properly valued. Thus, Tesco uses this HRM practice which leads to their increased productivity and profit because satisfied and valued employees at work provide extra effort to earn more remuneration and value for themselves. The practice also results to minimise faults and errors at work which acts to add to improved productivity in Tesco. This is because less time is spent to resolve faulty services and more time and efficiency of the employees are implemented to deliver increased services within the usual time. It leads to the financial profit of Tesco because the consumers are more satisfied with their services and goods than before leading to attract increased number of customers for availing their better quality services. Tesco has successfully implemented the mentioned HR practises to improve their productivity and profit which is evident because they earned £1.3billin in 2018 up till February as pre-tax profit which is more than £145m than the previous year. Moreover, during this phase, their sales rose by 2.2% than the previous year (www.bbc.com, 2018).
A good employee relation offers the manager of the organisation to have facility of consulting with employees to develop resolution for resolving problems at work. As asserted by Lee and Kim (2016), while working there are several problems being faced out of which all are not able to be solved by making decision alone by the manager or supervisor. This is because decision taken may not be appropriate to resolve the problem or may not be accepted by the employees and forcing them on the staffs would make the manager face resentment of the employees to work. This is going to create issues for managers in achieving the desired productivity of the organisation. As criticised by Schumacher et al. (2016), establishing effective employee relation by the HR department helps the manager at work to make collaborative decision in solving raised problem among the employees. This is evident as in Tesco the HRM by maintaining positive employee relation at work has helped the HR manager and supervisor to take collaborative decision including employees regarding the strategies to be implemented to resolve conflict among them at the work. This has impacted Tesco to execute solving of problems within less time and with better efficiency.
The good employee relation maintained by the HRM at Tesco has helped the organisation to create a happy and familiar place to work for the employees. This is effective for the organisation to offer positive working environment to its employees which has lead to avoid conflicts as well as non-cooperation among staffs and managers. In Tesco, an employee representative of employee union is recruited to maintain good communication with HRM to form effective employee relationship between the staffs and HR managers (www.tescoplc.com, 2017). It has led the HRM of Tesco to make decision at work which is easily accepted by the employees without much conflict. This is because the employee representative informs the HR manager at Tesco about the needs and demands of its employees who arrange the work strategies and employee benefits accordingly so that the needs and demands are properly fulfilled. A good employee relation is important to let the HRM understand the reason for absentees and turnover of employees which influences them to make changes in their decision to retain employees (Haider et al. 2015). Thus, good employee relation at Tesco is maintained as it is going to influence its HR department to make right decision to implement policies at work which are favourable for the employees to avoid turnover and motivate retaining of employees.
A good employee relation at the organisation helps its HR department to determine the factors to be resolved among the employees to upgrade their skills and knowledge (Leonard, 2016). This helps the HRM of Tesco to make decisions what factors are to be fulfilled through their Training and Development program so that the employees’ skills and knowledge are successfully upgraded to help them execute work with better efficiency. Thus, Tesco tries to maintain good employee relation so that they can develop successful training and development program for its employees to improve the organisation’s productivity.
The proper implementation of employee legislation by the HRM results Tesco to maintain ethical and system management of employees for accomplishing organisational goals. The Minimum Wage Act 2015 informs that the wages to be provided by any organisation within UK are to follow the set standards mentioned by the UK government according to the market (www.gov.uk, 2015). The implementation of this Act by the HRM of Tesco has led them to properly manage payroll of the employees due which the employees feel their work effort are properly remunerated ensuring a positive work environment within the organisation. This is because lack of proper payroll of employees makes them feel being exploited by the organisation which leads them to develop conflicts and chaos at work creating a negative working environment within the organisation (Kelly and Deklepper, 2016).
The Contract (Applicable Law) Act instructs the guidelines to be followed in framing a proper employee contract (www.legislation.gov.uk, 1990). This Act is abided by Tesco which has helped its HRM to avoid facing legal issues or negative attitude of the employees who are being recruited to work for the organisation. The HRM of Tesco by abiding the Act was able to frame proper employee contract that specifies all the things to be executed by the employee while working under their organisation along with the benefits they are going to access. Thus, it has employees to get properly informed about all the specification related to their work environment and work. The Health and Safety at Work Act 2015 refers that the employers are to make sure the health and safety of the employees are secured while at work (www.legislation.gov.uk, 2015). This Act is also abided and implemented by Tesco which has helped them to assure its employees that they are not at risk while at work and their lives are properly protected. Tesco by following the Act has maintained proper safety equipment and first aid at work to ensure health and safety of the employees.
The Equality Act 2010 informs that no partial or discriminatory treatment of the employees is to be allowed by the employer or employees on the basis of creed, caste, religion and others (www.legislation.gov.uk, 2010). The HRM of Tesco by abiding this Act has been able to create a diversified working environment which is without any form of cultural conflict or discrimination. It has also led equal treatment of each employee within Tesco at work. The Data Protection Act 1998 informs that no information is to be shared without the prior permission of the owner (www.legislation.gov.uk, 1998). The HRM at Tesco abides by the Act which has helped them assure employees that all their information is secured within the organisation and no data is to be used without their permission under any circumstances. This has helped Tesco to help its employees to feel secure that their private information is not to be made public under any condition.
The discussion informs that the HRM of Tesco has the key purpose of maintaining proper employee management to ensure productivity at work. The functions of the HRM of Tesco are arrangement of training and development, workforce planning, ensuring employee benefits and others. Tesco uses both internal and external recruitment process so that potential staffs can be recruited by resolving limitation of one of the processes by the other. The HRM of Tesco also maintains good employee relation which has led them to manage the employees in an effective manner to take potential decision regarding them without experiencing many issues. The HRM of Tesco has already implemented Data protection Act 1998, Health and Safety at Work Act 2015 and others to ensure ethical and legal employee management within the organisation.
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