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Strategic human resource Management at TESCO
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Preface
This report indicates the HR plan of the Tesco Company which critically evaluate how
HR can contribute and effect on the strategic plan and evaluates the strategic
significance of current, future and anticipated HR requirements and evaluates how
organizational culture impacts retention and recruitment of the staff. At last, the process
for recruitment and selection of the new staff is mentioned which complies with existing
organizational requirements and legislation. Tesco perfected the suggestion of the
efficient strategy of the HR in increasing its competitive advantage. The development of
the HR and entire improvement of workers comprised throughout the Company works
as the strength of the Company. It is very clear that HRM assists the Tesco organization
in accomplishing the organization goals by maintaining and hiring efficient workers. It is
viewed that workforce planning helps the Tesco Company in evaluation of organization
future requirements for the individuals in terms of the skills, locations and numbers. The
Tesco Company advertises available vacancies for the new staff through the website
(www.tesco.careers .com) and through boards of vacancy in the stores. Tesco applies
the process of the selection in the proper way which comprises choosing the suitable
individuals from those which apply for the vacancy, while maintaining to employment
regulations and laws.
Acknowledgement
Understand Strategic HR is essential for every organization to execute it decision upto
the mark and sustain competitive environment. We as a part of Human Resource
Development subject got chance to study and analyse how Strategic Human resource
management is applied in Tesco company.
As a part of our project we have selected Tesco Company where they have applied and
practiced Strategic Human Resource development to fulfil their demands and for overall
growth and development of the company. We have tried to analyse how their
departments are using Strategic Human resource Management techniques in their
organization.
We thank Dr. Nikil Zaveri for giving us opportunity. We are also thankful to Mr. Ajayraj
Vyas for guiding us in selecting company, and helping us to analyse strategic Human
resource management in company.
Last and not the least we are also thankful to all person who have guided us in
preparing this project
Index
General Information of Compnay.
Tesco considered as the largest employer of the private sector in the region of UK. It is
viewed that the Tesco Company has approximately 360000 workers globally. In UK,
stores of the UK vary from small domestic sites of the Tesco Express to the large Tesco
superstores and Extras. It is viewed that Tesco operates in almost 12 countries apart
from UK, comprising Japan, China and Turkey. The Tesco Company has currently
opened the stores in the US. This global expansion is considered as the part of the
Tesco strategy to grow and diversify the business. It is viewed that in its non –
operations Tesco maintains on strengths and formed as the leader of the market in
supermarket sector of the UK.
The ultimate objective of the strategic plan is the exploitation and identification of
opportunities with risks minimization, by coordinating the initiatives and goals of the
Company and by distributing the appropriate and necessary resources to produce the
desired outcomes of the stakeholders.
Role of the HR
The function of the HR can and must be involved at each and every level of process.
Successful implementation of the guiding principles across each level of the planning
maintains the value perception of HR function and HR professional. Moreover, the
position of the HR professional is reinforced by offering fact related value to the
stakeholders to make their policies by shaping functional policies, procedures and plans
of the HR to manage resources for enabling the sufficient activities and initiatives by
coordinating the management systems of the performance to strategic plan. Tesco
perfected the suggestion of the efficient strategy of the HR in increasing its competitive
advantage. The development of the HR and entire improvement of workers comprised
throughout the Company works as the strength of the Company. It is viewed that the
organizational functioning of the Tesco Company is thriving and in the positive
progression.
It is very clear that HRM assists the organization in accomplishing the organization
goals by maintaining and hiring efficient workers. In general, the following are few of the
accountabilities of the HR in the Tesco Company.It is viewed that HR train the
employees to sustain the organization competitiveness which ultimately helps the
organization in managing its strategic plan.
Formulate and communicate procedures and policies of the industry in relation with the
legislation. HR of the Company led the negotiations for managing the strategic plan of
the Company.
The HR of the Company evaluates and manages the climate of the organization and
maintains the relationship with the employees.
The HR of the Tesco Company forms strategies of the compensation in relation with the
legislation and the business strategy of the organization.
The HR of the Company attaches relevant financial values to the post in organization
making sure that compensation of the organization is in relation with the forces of the
market. In fact, he develops sufficient systems of the compensation for organization.
The HR of the Tesco Company offers relevant information concerning employees to be
implemented in the process of decision making and evaluation of the contribution of the
HRM to the Company. It is very clear that competitive environment is developing more
and due to that HR department becomes liable for attracting the new employees. It can
be said that the HR department of the Tesco Company is successful in attracting new
employees for maintenance of the strategic plan (Kidder, 2003).
The clear efficient execution of the functions of the HR by HR executive of the Tesco is
the foundation itself to show that the strategy of the HR is the tool for the competitive
edge. Being regulated by the CEO, the Tesco Company offered complete
implementation of the function of the HR with concern to the welfare of the employees.
Tesco HR Departments
It is viewed that within the Tesco, the departments of the HR are with all of its stores in
the head and regional offices. By having the department of the HR in each and every
store it permits the team of the HR to view how store is performing and view apparently
where the organization requires the new staff. The department of the HR assists the
Company by
Devising of the techniques to compute and minimize the labor turnover
Planning in advance to ensure that each and every department has adequate staff
In fact planners of the HR conduct the flexible workforce that has financial, functional
and numerical flexibility.
Give training to the new employees so they are able to deal with their assigned
department safely and correctly.
The Tesco structure has huge workforce under its control. It has used the resources for
deliverance of the Tesco is as follows: The Tesco Company has searched more
effective paths of executing the business activity or the task. The technology
advancement has permitted the Company to take few of the demanding duties away
from the workers to reduce the human error. The Company gives more responsibility to
the general staff throughout stores and permitting them to implement their initiative
when assisting or serving the customer. The managers of the each store have been
offered the wider span of the power with its workforce.
Assessment of Current and Future Needs of the Tesco
It is viewed that strategic objectives of the Tesco Company is to maximize the sales and
to offer goods and services which is affordable to public or the consumers.
It is viewed that Tesco with its management, performance of the organization is
achieving the success with the clear outcomes of efficient strategies of the HR which
goes with the robust strategies of the marketing which are placed into the operations. In
current time, Tesco works internationally, the requirement to concentrate on the
strategic planning and international of the HRM is mandatory (Ferner, 2003). Managing
the labor force members and the target market needs further company involvement to
the future market probing and feasibility studies. It is viewed that current resources of
the Tesco and its operations shall continue to thrive as it verifies the notion that the
effective strategies of the HR and practices work as the competitive edge between other
business both local and globally in the operations (Goleman, 2004).
The competitive edge of the Tesco is positioned to the comfortable strategic plan of its
management comprising its HR. In fact, effective strategy of the HR shall result in the
competitive advantage. In addition, strategies of the HR in general referred as the
different approach to the management of the employee that views to accomplish the
competitive benefit with the help of strategic deployment of the greatly capable and
committed workforce, implementing the coordinated array of structural, cultural and
personnel procedures. It is all about researching, revising, applying all activities of the
human resource in their external and internal contexts as they effect the procedure of
integrating human resource in the enterprises across the international environment to
increase the multiple stakeholders experience, comprising customers, investors,
partners, society and the environment.
In general, workforce planning referred as the process of evaluating the organizations
future requirements for the individuals in terms of the skills, locations and numbers. It
permits the Company to decide how those requirements can be fulfilled with the help of
training and recruitment. It is significant for the Company like Tesco to go ahead. Tesco
is required to hire on the regular basis for both food & non-food portions of business.
Positions become accessible because jobs are made as the organization begins new
store in UK and diversifies globally, Vacancies prevail as the workers leave the
organization when they resign, retire or get the promotion to other position throughout
Tesco. In general, new kinds of jobs may be made as the organization alters its
technology and process. Tesco implements the table of workforce planning for
establishing the need for the new staff. This refers both non-managerial and managerial
position. In year 2008-09 for e.g. Tesco computes that to hold its growth of the business
there shall be the need for approximately 4000 managers.
The planning process
This process of the planning operates each and every year. There are various quarterly
reviews in the May, Aug and the Nov, so Tesco Company may alter levels of the staffing
and hire where necessary (George & Jones, 2008). This permits Tesco adequate
flexibility and time to fulfill its needs for the staff and permits the organization to fulfill its
strategic purposes for e.g. to begin new store and maintain standards of the customer
service. Tesco views to fill various vacancies from throughout the Company. It
understands the significance of encouraging its staff to develop their careers throughout
the Company. The practices at the Tesco called as the talent planning. This motivates
the individuals to operate their path within the organization. Through the scheme of the
annual appraisal, people may apply for the higher jobs. Employees search roles in that
they could like to form their career with the Tesco. Their manager makes out the
competencies, behaviors and technical skills essential for these functions, what kind of
training shall need and how lengthy it shall take the individual to be prepared for
accomplishing the job. This assists Tesco to accomplish its objectives of the business
and workers to accomplish their career and personal objectives.
The significant component in the workforce planning is to get apparent descriptions of
the job and specifications of the individual. The job description gives the description
about
The job title
To whom holder of the job is accountable
The simple explanation of responsibilities and roles
The specification of the individual makes out the characteristics, attributes and skills that
the individual requires to accomplish the specific job. Both description of the job and
specifications of the individual offer the foundation for advertisements of the job. They
assist post holders and job applicants to recognize what is anticipated out of them. As
they are sending to anyone applying for the jobs they must:
Comprise adequate information for fascinating the suitable individuals
Act as the checking tool to ensure that individuals with the accurate skills and
knowledge are chosen for the interview.
Make the standards and targets for the performance of the job.
In general descriptions of the job and specifications of the individual reflect how the job
holders fit in the business of the Tesco. They help the Organization to hire the right
people. They also offer the benchmark for each type of job in conditions of skills and
responsibilities. These assist managers to analyze that the staff are carrying out the
jobs according to the appropriate standards or not.
Organizational Culture at the Tesco
Organizational culture comprise of shared values and beliefs formed by the leaders of
the organization and then reinforced through several methods, finally shaping employee
behaviors, perceptions and understanding. It is viewed that the Tesco has greatest
workforce in the region of the UK that is greatly diversified (Griffin & Moorhead, 2007).
The process of the continuous learning has effect from the organization culture. The
persuasion of the organizational culture in development and growth of the Company is
very much viewed in organization. Organizational culture is maintained, transformed
and created by the people. In general, culture of the organization is formed and
sustained by the leadership of the organization. The design and structure of the
Company may be looked as its culture and body as its essence (Chuang, Church &
Zikic, 2004). Various leaders try to implement innovative strategic plan and strategies
guiding to the new vision and shall determine that their strategies shall fail if they are not
consistent with culture of the organization (Boxall, 2000). Because situations and
industries change considerably, it could be risky and complex to suggest that there is
one size which suits all culture templates which fulfills the requirements of the
organization. If the culture of the organization is to enhance its entire effectiveness and
performance, its organizational culture should be robust and offer the strategic
competitive benefit and its values and beliefs should be broadly firmly and shared
upheld. It is viewed that the organization that maintains and develops the robust
organization culture may realize various benefits like increased cooperation and mutual
trust, facilitation of the open communication and helping employees in creating sense of
its behavior by offering justification for the behavior. Organization Culture defined as
the outcome of the maintained interaction between individuals in organizations and
prevails commonly in feelings, behavior and thoughts of individual’s.
There are 3 main steps comprised in changing of the culture of the organization. Before
the Organization may alter its culture, it should first recognize about the existing culture
and the things they are performing. After the understanding of the organizational
culture, it is important for the organization to decide about what culture of the
organization must give to the success of the support. Lastly, the people in the Company
should decide to alter their nature to make the desired culture of the organization.
Tesco’s objective is to help its customers. The Company organizational structure has
consumer at top level. Tesco requires individuals with accurate skills at each and every
level of the structure. In general, there are 6 stages throughout the Organization. This
offers the apparent structure for controlling and managing the Organization. Each stage
needs specific behaviors and skills. It can be said that these 6 stages help the Tesco
Company in maintaining the relationship with its customers and which ultimately leads
to the retention of the staff because of increasing the value of the Company (Kidder,
2003).
Work Level1: Frontline jobs dealing directly with the customers. Several in-store tasks
like filling shelves with the stock. It needs the capability to operate rightly and with the
enthusiasm and to coordinate well with the others.
Work level 2 – This level leading the employee’s team who transact directly with the
customers. In general, this level needs the capability to manage the resources, to make
targets and to motivate others.
Work level 3 – This level needs skills of the management comprising target setting,
reporting and planning.
Work level 4 – This level supports operating units and suggesting strategic change. It
needs good understanding of business and the skills to evaluate the information and
create actions and the capability to guide others (Marchington & Wilkinson, 2002).
Work level 5 – This level is accountable for the Tesco performance as the whole. It
needs the capability to direct and lead others and make main actions.
Work level 6 – This level needs the excellent retailing overview and the capability to
maintain the vision for the upcoming time and guide the entire organization.
It is viewed that Tesco has 7 part framework which explains basic behaviors and skills
at every level of the Organization. This assists managers at the top level to recognize
whether employees have right skills and knowledge to perform their roles.
It is very clear that Tesco organizational culture is rich and multicultural but
management of the Tesco must arrange the proper path to concentrate on employees
group by their departments so that belief and value statements are formed. This shall
assist in the values conversion into the words which have the consequence on each job
of the employee.
HR Planning
It is viewed that HR planning of the Tesco Company comprises workforce planning
which referred as the process of evaluating the organizations future requirements for
the individuals in terms of the skills, locations and numbers (Bratton & Gold, 2003). It
permits the Company to decide how those requirements can be fulfilled with the help of
training and recruitment. It is significant for the Company like Tesco to go ahead. It can
be said that workforce planning helps the Tesco Company in maintaining its strategic
plan through evaluation of organizations future requirements for the individuals in terms
of numbers, locations and skills.
Recruitment and Selection of the Tesco In general, recruitment comprises
fascinating the accurate standard of the applicants for available vacancies. Tesco
promotes jobs in various ways. The process is changing depending upon the available
job. Tesco first views at its inner plan of the talent to fill the vacancy. This is referred as
the process which lists existing workers viewing for the move, might be at the similar
level or promotion. If there is no relevant individual in this plan of the talent or forming
on inner management programme, then the Company advertises the post on the
intranet for 2 weeks. It is viewed that Tesco purpose is to ensure that all employees
work together for driving of the business objectives. The Company is required to make
sure that it has accurate and sufficient number of people in accurate jobs at accurate
time. The Tesco Company has structured procedure for the selection and recruitment
for attracting the individuals for both operational and managerial roles.
External recruitment
It is viewed that for the external recruitment, the Company advertises available
vacancies for the new staff through the website (www.tesco.careers .com) and through
boards of vacancy in the stores (Tesco, 2010). Applications are created online for the
managerial positions. The chosen applicant will have the interview followed by the
attendance at the centre of the assessment for the last level of the process of the
selection (Amit & Schoemaker, 1993). Individuals interested in the store related jobs
with the Company Tesco may approach stores with their resumes or register through
Job Centre. The store makes the waiting record of the individuals applying in this path
and gives them a call as vacancies become available. It is harder for the Company to fill
the specialist jobs like pharmacists and bakers for that Tesco promotes externally:
Through offline media and website of the Company
Through radio and television
By putting advertisements on the Google and in magazines like The Appointment
Journal
It is viewed that Tesco will view the cost-efficient path of fascinating the accurate
applicants. It is costly to promote on radio, television and in few magazines but few
times this is essential to make sure the accurate kind of individuals acquire to know
about the vacancy. Tesco creates it simple for the applicants to search about the
available opportunities and has simple process of the application (Boselie, Paauwe &
Jansen, 2001). Through accessing the website of Tesco, the applicant may search out
about the domestic jobs, posts of the management and positions for the head office.
The Company Website has online form for the individuals to submit straightly. At last, it
can be said that the Tesco Company recruits the new staff with the help of offline
media, website of the Company, Radio, television and by putting advertisements on the
Google and in magazines like the Appointment journal.
Selection
Selection comprises choosing the suitable individuals from those which apply for the
vacancy, while maintaining to employment regulations and laws. Screening of the
candidate considered as significant portion of the process of the selection (Sisson,
2001). This makes sure that individuals shortlisted for the interview have the excellent
skills and fit with the requirements of the job. In the initial levels of the screening,
selectors of the Tesco shall view cautiously at each and every resume of the applicant
(Tesco, 2010). The resume summarizes the job history and education of the candidate
up to the date. The positive and well written resume helps Tesco Company to analyze
whether the individual matches the job specification or not. The Tesco Company also
offers a tool of job match on its career web page. In general, individuals are interested
in working for the Tesco may view where they fit before sending the application to the
Company.
This diagram indicates the process of the Tesco which shows how the external
management candidates have gone through the various stages.
It is viewed that at Tesco the candidate who passes the screening then after that he
attends the centre of the assessment. The centers of the assessment take place in the
store and are operated by the managers (Karash, 2002). They assist to offer stability in
the process of the selection. Applicants are offered with several exercises, comprising
activities of team working or exercises of problem solving. These comprise instances of
obstacles applicants may have to transact with at the work. Individuals are approved by
the centers of the internal assessment then have the interview. It is viewed that line
manager for job on the offer may take initiative in interview to ensure that the individual
fits the requirements of the job.
Conclusion It is very clear that workforce planning is crucial if the business is to
fulfill its upcoming needs for the staff. It permits the business time to educate the current
staff to take on the new accountabilities and to hire new staff to fill the vacancy or to
fulfill shortages in the skill. It is very clear that Tesco is the major global Company with
several job opportunities comprising graduate, apprentice posts, management and
school leaver. Tesco is required to have individuals with right behaviors and skills to
maintain its development and growth. Tesco has apparent organizational structures,
detailed descriptions of the job and specifications of the individuals. It offers user-
friendly paths of applying for the jobs and the consistent procedure for the selection and
recruitment. This shows that Tesco can manage its altering need for the staff. It can be
said that the Tesco Company recruits the new staff with the help of offline media,
website of the Company, through television and radio and by putting the advertisements
on the Google and in the magazines like Appointment Journal with proper
organizational requirements. At last, it can be said that the HR of the Tesco helps the
Company in achieving its strategic objectives through efficient HR strategies.