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Company chosen for this assignment is Tesco which is a UK listed multinational company. Tesco is into grocery and daily usage products retailing through supermarket format of business. This Unit 18 Human Resources Management Assignment Tesco is focuses on the analysis of the organization and the human resources management and policies of the company. It has annual revenue of 66 billion GBP and it employs more than 500,000 employees. With such a huge employee count it is very important for company to keep right HR strategies and solutions for the occasional issues related to HR, performance management, career growth and other organizational behaviour issues.
According to my personal experience HR management is a broader function which has personnel management as a part of it. HR management includes other activities like performance management of employees, their career path development, managing retention, job satisfaction level etc which enhance the scope and impact of a HR management function. Human resource problems and their impact can be that strong for an organization that its survival and sustainability both can be jeopardized if human resources is not properly managed and aligned. Any two equivalent organizations with similar financial power, market values, brand image, technological expertise would eventually catch up with each other in market penetration, product design, advertisement, promotion etc and the only differentiating factor would be the human resources and their capabilities which can bring long term competitive advantage to a company (Drucker, 2009).
Human resource function of Tesco completely revolves around the policy of work simplification, unwritten norms and rules and performance management linked directly with the career growth and promotions. Primary contribution of HR management in Tesco can be defined by the fact that Tesco is working with a large pool of employee and they are working in different work cultures, time zones and environment it is very difficult for them to maintain a uniform human resource strategy and they also faces different challenges in HR sector on a regular basis. Tesco has defined its core purpose and values for it employees and they expect each employee to work towards attainment of these values and purposes. In order to do that, each employee is given orientation and training and they are trained to be efficient effective and highly productive for the organization. Majority of the Employees are also started with the shop floor level job they are expected to work their way towards career growth and development.
A line manager is backbone in Tesco and it is their responsibility to oversee and ensure that day to day operations of company are executed smoothly. It is very important for the line mangers to identify the interest areas of his team members and assign them work accordingly. Line managers are also actively involved in solving day to day problems of junior employees and hiring of part time employees to meet the additional rush on weekends. Along with long working hours and uncertainty over job security there are many other aspects which creates and increase stress levels which line managers handles for their teams (Rowley, 2005).
First legal and regulatory requirement which impacts the HRM of companies like Tesco is to ensure that work place is safe for all employees. They should be provided with pay, promotion, rewards, bonuses, health benefits, paid holidays, etc. to be encouraged to continue with the company. The social needs of employees as well as their family members may be fulfilled like their needs of getting accepted by their colleagues and seniors and thus, would largely motivate them. Better and strict enforcement of occupational health and safety measures, regular medical checkups of the employees, giving them stock options, providing medical treatment assistance, post retirement benefits, family pension schemes etc are employed by the organization to ensure that they become one of the preferred destination of employment for talented people and also enhances the productivity of the organization. Another legal requirement in terms of HR for companies like Tesco is to conduct third party HR audit. Human resource auditing will conduct an objective analysis of human resource strategies and policies of company at each market. This audit would help in identifying the gaps which are existing in the company causing high attrition rate. This third party audit will provide areas of improvement like increase in monetary compensation, organizing social recognition and reward system, empowering employees etc and they would also be highlighting the difference in external environment and internal environment of the company in terms of culture and human resources (Collings & Wood, 2009).
HR planning is very important for employee retention, increasing job satisfaction level among employees and providing them with right leadership and empowerment to increase the productivity and efficiency. Entire corporate culture of companies like Tesco turns into a categorical race to meet the targets and for the short term it might be beneficial for the company as well but in the longer run none of the employee would be working keeping mission and vision of the company in consideration. This is a natural development in a company which is measuring strictly on productivity parameters because each employee would be aligning their personal benefits with the company targets (Browaeys & Prince, 2011). With proper HR planning Employees would be provided with a clear growth pathway describing individual targets to be achieved within certain timeline and rewards following the task accomplishments. They should be encouraged to work efficiently to achieve the expected outcome by giving them increments, promotion and other benefits. Moreover, employees long to get the empowerment in the company they are serving for as it departs a feeling of belongingness and pride in them. At several times, they wish to get actively involved in the major decision making processes of the organisation. Through proper HR planning they would be provided with the power as the motivational strategy.
There are 6 major steps of HR planning which can be considered as stages of HR planning for companies like Tesco. These steps are provided below in a diagrammatic fashion.
For a business to continuously grow and achieve its aspired positions in the current era of fierce competitive market, it is extremely essential to keep the human resource motivated and aligned towards the company’s goals and objectives. Several studies have been done over it and thus, there are various employee motivation theories available in the literature. Once objectives of the companies are properly analysed then the next step comes of forecasting the demand and assessing the gap which exists between demand and current HR associated with company. Next stage would be to formulate the HR plan which will include hiring and retaining the employees and keeping a control over their performance management. Hiring and recruitment can be done directly or through a hiring agency which will help in identifying the right skill set among employees. Last part would be to develop a strong and responsive feedback system. This feedback system would act as a round the clock monitoring for the efforts made by the company for improvement of HR strategies and policies. In this feedback mechanism employees can provide their feedback for the HR strategies, they can also rate the efforts and changes made by the company and also submit any knowledge or information they gained over the period of time working with Tesco. Through this mechanism company can keep a check on going in the wrong direction and also there would be an enhancement in communication between upper management and lower level employees.
Recruitment and selection is the process of selecting the right candidate according to requirement of the organization. Current recruitment and selection process of the company is very platonic in nature. Current attrition rate of Tesco is 16 percent annually which is considered as a high attrition rate for an industry but in terms of retail chain sector 10 percent and above attrition rate is considered as a norm. If we compare recruitment of other companies like Facebook or google then there would be a stark contrast between them and Tesco plc. Their recruitment process is very innovative and they believe in providing the right job profile to the right candidate and develop their leadership skills as well. A job profile that allows a person to learn various things and carve his current abilities would always attract him and increase his job satisfaction level. Regular training and developing sessions along with the optimum freedom to use his wit and capabilities to perform a task would definitely encourage him to work harder and give better performance. Employees should not always be asked to take up repetitive job that does not require any skills and abilities as that would decrease their motivation level and may even cause them to leave the job. These aspects are more common in recruitment and selection of companies like Google while Tesco is still struggling with a huge employee base and their routine HR issues (Sparrow, et al 2009).
Effectiveness of recruitment and selection can be observed in organisation’s attrition rate, performance and effectiveness easily. Google believes in empowering its employee’s right from the beginning. It has been reported that empowerment increases the work efficiency of employees manifold by increasing their focus and dedication towards their job, and therefore it leads to both, personal as well as organisational progress. The company’s benefits and goals get aligned with that of employees, and they become even more responsible towards their job (Brewster, Sparrow & Vernon, 2007). Moreover, along with the monetary rewards or promotion, employees must also be provided with public recognition. It acts as one of the cheapest but very effective means of motivating employees. Another rule that works best in the rewarding strategy is that the good performance must be rewarded as early as possible since less the time between employee’s performance and management’s recognition, more clearly is the message is sent to the workforce that action is highly preferred in the organisation (Rieple, 2008). This aspect is lacking in Tesco where as employees of companies like Google are proud to say in society that they are working with “Google” and it gives them a special recognition.
Employing right HR strategies and approaches, increasing motivation levels and aligning activities with the goals and objectives of the company would help in resolving the current challenges (Tesco, 2014). Here are few approaches that may be utilised by the company’s management to keep the motivational level of its employees high and encourage them to give their best performance. Although the performance of an employee is affected by various factors viz. their performance appraisals, job satisfaction level, motivation level, job security, opportunity to grow and develop, organisational structure, etc, however, the report focuses on employee motivation and it is the policy which may be adopted by mangers to persuade their HR for working efficiently even in the most strenuous conditions for the company’s benefit. Employee motivation level may also be increased by appraising their hard work and good performance. No matter, how experienced or qualified an employee is, he always wishes to get work appraisal and rewards, so, they must be encouraged to perform better in future through recognition and rewards. Thus, it may be said that various motivational approaches may be used by a company and its management to retain its employees and encourage them to work efficiently. HR is the resource which if managed in a way to keep them motivated and take efforts to give best possible results would definitely make an organization to rise to achieve leading positions in the market (Sparrow, et al 2010).
Another problem with a inorganic structure and a mechanised corporate culture that parameters or indicators which are measuring performance of an employee are productivity per working hour, earning from each employee, number of hours worked etc which are quantitative parameters of work performance measurement. These are still forming a major component in Tesco when it comes to determining salaries for the employees. There is a need for change in these approaches because all aspects of performance of an employee are not numerically measurable. This type of approach is not able to measure the performance parameters which are non numerical in nature like general behaviour of a employee, their efforts to go out of the way for customer satisfaction, their ability to follow up on a customer and facilitating a sale etc. Thus only those employees would get rewarded who are performing to meet the targets. By taking care of the Employees the organizations can also gain more important inputs that are required for carrying out reforms in their business operations. Rewards and benefits are the essential way of encouraging and motivating the workforce so that they are able to increase their productivity. Organizations should have a policy to reward their hardworking and performing Employees like a 360 degree performance appraisal systems. The rewards can be in form of monetary incentives, out of the turn promotions or paid holidays.
It is assessed from the evaluation that for most of the field level employees a job in Tesco is a mechanical in between job which is used to meet their daily requirements, earn barely something above minimal wages and get by. Problems which are identified after critical evaluation of Tesco and its human resource policies can be broadly classified as high attrition rate. Less job satisfaction, lack of holistic performance measurement indicator and leadership approaches which is not able to promote autonomy, innovation and high level of work motivation among employees. Jobs which are done at shop floor by most of the employees are either salesperson, packers, loaders, billing counter people etc and these jobs eventually turns into redundant jobs because of their repetitive nature, nothing challenging in the job and very little scope of innovation and growth. Tesco is also considered to be a preferred employer for people who are interested in part time employment, students working on weekends etc. for such employee’s commitment towards organization and long term association and working for their goals and objectives is not a consideration (Fleetwood & Hesketh, 2009).
Tesco has recently developed a 360 degree performance appraisal system which will have both tangible and intangible performance measurement attributes in it. A holistic performance appraisal system would ensure that every employee would get credit for the real performance they made rather than just sales target. A 360 degree performance appraisal would also include aspects like loyalty towards organization, efforts made by the employee to reduce lose of the company and it would also include behaviour with other employees, seniors, juniors and number of complaints received by the customers etc. there are many projects in a company which are not taken up by the employees willingly because of high probability of failure and in the end these employee would bear the brunt of non performance as per conventional parameters.
According to the exit interviews conducted by Tesco from their leaving employees identified that human resource management problem they are facing is redundancy and boredom among employees leading towards higher attrition rate. A higher attrition rate increases cost of hiring for the company, increases the time and resources spent on training of the employees and also creates a general environment of too many changes, lack of coordination and transfer of responsibility soon thus dragging the productivity levels. Problem with the current situation of Tesco is that they need a large number of shop floor employees and very less employees in middle and top management position thus making the growth of employees sluggish which is also one of the major reasons why employees cease to work with companies like Tesco for a long period of time. Many employees use jobs in Tesco as a in between job for themselves or a job which they can quit the moment they have a better and stronger alternative. Problems associated with human resource management needs to be rectified through changes in HR policies, adapting motivational approaches and developing strategies which can act as an intervention for organization and lead it towards right objectives and aims.
Since exit is a common occurrence in companies like Tesco and their high attrition rate, exit has been a simplified process in Tesco. Current notice period for a full time employee is 1 month and for a part time or temporary employee it is a 1 week notice period. Exit interview is done in form of a questionnaire for part time employees and it appears that it does not have a major impact on the HR policies of the company. Corporate culture of Tesco is highly efficient and inorganic in nature which is required in such organizations where a large number of employees work and efficiency in operations is of paramount importance. In such a work culture it is very difficult for an organization to develop HR policies which are tailor made for the requirements of an employee. Most of the HR policies would be created in such a way that they are suitable for the majority of the employees.
Legal and regulatory frame of UK requires that employees should be protected and provided with a fair opportunity and freedom when it comes to leaving a job or an organization. A proper time period as a notice for both employers and employees are mandatory according to fair work act, 2009 for all full times and on roll employees. For part time employees or on contract employees termination or exit is easier and once the contract is over then legal requirement of both parties are limited. Company are also subject to various audits by labour department and they will have provided detailed information of their labour related activities to the government on a periodic basis (Brown, 2001). There should be enough scope in the workplace for an employee so that he can tell his grievances directly to the management or the relevant authorities while exiting or before exiting without any fear of repercussions. Employment Rights Act, 1966 and Equality Act 2010 Company are the primary laws of UK which can impose severe penalties, reinstatement of the employment etc on companies like Tesco if fair exit policies are not in place.
In conclusion it can be said that this entire approach of hiring, employment and firing needs to be overhauled and a long term sustainable HR policies and strategies are required for the company. They can develop a few base line principles which will determine the standards of the company like Zero discrimination police while hiring, no to child labour in all cases, zero tolerance against harassment, safe work environment. 360 degree performance appraisals etc are a few attributes which can be kept as universal in all subsidiaries, countries and markets. However number of working hours which are maximum for a employee, work hour flexibility, additional facilities provided to female employees, financial and non financial compensation, holidays and other break related norms, reward and recognition system etc can be designed to meet the social needs of the external environment (Barbara, 2009).
Fleetwood, S. & Hesketh, A. (2009) Understanding the Performance of Human Resources, Cambridge: Cambridge University Press. 270pp.
Brewster, C,, Sparrow, P.R. & Vernon, G. (2007) International human resource management. 2nd Edition. London: Chartered Institute of Personnel and Development. ISBN 978 1 84398 159 6. 323pp
Barbara F. (2009), “Retail Industry Information: Overview of Facts, Research, Data, and Trivia,” About.com,http://retailindustry.about.com/od/statisticsresearch/p/retailindustry.htm Last accessed 17 Jul 2016.
Rieple, A., 2008. Strategic Management: Theory and Application. In: s.l.:Oxford University Press, pp. 130-137.
Collings, D. G., & Wood, G. (2009). Human resource management: A critical approach. London: Routledge.
Rowley, J. (2005), Building brand webs: Customer relationship management through the Tesco Clubcard loyalty scheme, International Journal of Retail & Distribution Management, Vol. 33 Iss: 3, pp.194 – 206
Brown, D (2001) Reward Strategies, from Intent to Impact, Chartered Instituteof Personnel and Development, London
This Unit 18 Human Resources Management Assignment Tesco is focuses on the analysis of the internal and the external environment for the organization and the human resources management and policies of the company, Locus Assignment Help in UK posting units solutions so scholars can explore assignment help and get review the quality of our work.