Delivery in day(s): 5
Diploma in Business
Unit Number and Title
Unit 1 Business Environment – Tesco Plc
The organisation that is selected for this report is Tesco. It is a global supermarket chain having its presence over 13 countries with 4, 70, 000 workforce. The headquarter is located at England in UK. It is a public organisation which used to sell their shares in the London stock exchange and currently the value of the share is 166.40p.The unit 1 business environment assignment solution – Tesco Plc explains about various roles and responsibilities of Tesco Plc regarding satisfying the needs and requirements of different stakeholders (Palmer & Hartley, 2008). The assignment also shed light over the role of national environment and the impact of the fiscal policy. In UK Tesco is having the highest market share nearly around 28% as per Kantar market research. The convenience as well as standard quality is the key potential of Tesco towards the customers. It is the human resource department who plays a major role for utilising the resources effectively in order to attain the goals of the business. The employees are the crucial part in their business and for that the management provides support to their employees by inviting them to the decision making process. For example, the employees of the closed stores in UK are transferred to other stores, providing 12 weeks off schemes, apprenticeships schemes declares the organisation to consider the human relation approach.
The organisation that is selected for the case study is Tesco which is an UK based retail supermarket chain. The mission of Tesco is to serve the customers effectively in the terms of quality and easy living by their products and enhanced services. Thus the slogan for Tesco is “Serving Britain’s shoppers a little better everyday”. The business environment is the external and the internal factors which influence the decision making process of the business. Thus it is necessary to identify the factors in order to assess the business enterprise. External environment can be identified by conducting the PEST analysis in the following way:
From the PESTLE analysis it is observed that there are different factors which influence the management of Tesco. Under the political factors, the legislations like Health and Safety Act indicates the secured environment in the workplace and for that the management have to conduct the risk assessment practices which include certain cost and time. But at the end of the day the motivation of the employees will increase which will boost the productivity level. Secondly the Equality Act 2010 prohibits the discrimination on the areas like selection, training, promotion etc. it is very much possible that there is a negative relationship among some employees which will violate the legislations and for that the organisation like Tesco have to pay the penalties as per the judgement of the employment tribunal. Improvement in the economical situation of the country will definitely bring some positive inputs in the organisation but on the other hand globalisation may increase the level of competition which is creating huge pressures for the employees in order to achieve the target. Social factors are mainly the trends and developments observed in the society. On this perspective the scenarios of flexible working practices hampers the group formation process which is reducing the bond between the employees. Technology brings smoothness on the process but the network issues, absence of face to face communication can reduce the level of efficiency among the employees at Tesco. Sometimes correct analysis is missing due to the online system of gathering the responses. Internal environment can be identified and analysed from the Porter’s five forces in the following way:
Tesco is the retail supermarket chain where the human resource plays a significant role in the terms of strategy implementation. Approaching the customers efficiently, responding the customers in an appropriate way, timely delivery of the services, attaining the customer’s queries, maintaining the inventory as well as sales, preparing the budget, leading and motivating the team are fall under the responsibilities of the employees or the human resources in the organisation. All these responsibility needs to be done correctly in order to maximise the level of productivity. The management of the organisation devise a strategy in order to utilise and retain the best resources for creating and delivering a unique value to the customers and also to achieve the competitive advantage. The human resource policies and the procedures of Tesco considers the employees in a central part of the decision making process in order to implement the strategy successfully.
These are the basic HR policies and the procedures followed by the management of Tesco for developing the human resources effectively in order to meet the demand of the market. The models which can improve the efficiency level of the employees as well as bring effectiveness are Dave Ulrich model and Human Resource Planning model. Firstly is the Dave Ulrich model which integrates the employees or the people, process, strategies and operational focus for increasing the efficiency of the organisation. The model gives four aspects which is necessary for the HRM department of Tesco to adopt it in the strategic planning process. The positive side of this model is the integration of all the areas which are necessary to frame the HR policies and procedures supportive for the employees as well as for the organisation’s success.
The four dimensions are as follows:
Another model that is Human Resource planning model can be used as a strategic human resource tool for increasing the level of operational efficiency in the organisation like Tesco. Human resource planning is an integrated approach to identify the skills gaps by aligning the organisational goal and current status of the organisation in order to implement the sound techniques (Boselie, 2010). Forecasting the demand of the human resources by matching the supply is the important feature of this model. Apart from that controlling and measuring the level of efficiency can also be done which are the positive side of this model.
At very first stage, the management needs to identify the current state that is the level of competencies in the terms of target achievement. The target achievement should be measured with the business objectives of Tesco for analysing the gaps. The gaps will address the requirements that are needed to achieve the targets. Then at the second stage demand forecasting is needed to be conducted with the help of the techniques like Delphi method, trend analysis etc. Delphi method is the opinions drawn from the relevant groups who can give an idea about the demand of the human resources (Boselie, 2010). The considerations will be the financial resources, technology etc. After that determination of the supply is needed to be done by assessing the unemployment percentage, Government initiatives like the trainings, education. Succession planning or the replacement charts are the techniques that are followed to assess the supply. After balancing the demand and supply, shortages or surplus figures will be arrived that will involved the measures like recruitment or terminations, layoffs etc.
The positive side of the existing HR policies and practices is based on the human relation approach where the employees are given focus in the terms of welfare and benefits for increasing their productivity. The integrated approach to increase the productivity of Tesco is not observed from the existing HR policies and procedures. The policies should align the organisational goal with efficiency level of the human resources which was missing from the overall policies of Tesco. Addressing the skill gaps and devising a strategy is also not mention in the existing HR policies and procedures.Thus from the two models of the Strategic HRM as discussed align the business objective with the current state of the organisation for establishing a plan which will smoothen the operational process as well as bring efficiency in the organisation like Tesco. Thus it is recommended to follow certain models related to the strategic human resource management which can integrate all the functions by aligning the business objectives for enhancing the organisation to achieve the competitive advantage as well as efficiency in the workplace.
Talent management is the process which anticipates the requirement of the human resources and accordingly a structured plan is being designed to fulfil the requirements. It is a systematic process that saves time as well as cost for the organisation. Tesco is the market leader in the super market chain of UK having around 28.1% of the market share (Kantar World Panel, 2016). In this perspective it is the duty of the management to retain the first position by attracting and retaining the best talent or resources of the organisation. The concept of attracting the people has been changed as per the market research reports. It is not only the role profiling and organisational fit rather it is the expectation of the employees form the employers which is needed to be identified in perspective of talent attraction. The new strategies for attracting the talent can be done in a following way:
It is also necessary to retain the talents in the organisation which can reduce the cost of hiring and also enhance the level of familiarity. The new strategies can be:
Apart from that there are different barriers which are needed to be focused while implementing successful talent management in the organisation. The challenges are as follows:
Thus it is needed for the organisation Tesco to attract and recruit the best talents in order to develop a unique value proposition for the customers as well as employees to increase the profitability and productivity respectively.
From the report it has been clear that Human resource management plays a vital role in the areas like decision making process, engaging the resources, attracting and retaining the talents, addressing the shortages and excess of the workforce in the organisation, measuring the efficiency level by addressing the skill gaps etc. Thus it is necessary for the management to devise a strategy which must involve the human resource management for increasing the efficiency as well as productivity.
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