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Training and Development at TESCO

Siddhant Babbar MBA First Year S133F0033

Company Overview Tesco is a British multinational grocery and general merchandise retailer headquartered in Cheshunt. It is the second-largest retailer in the world measured by profits and the third-largest retailer in the world measured by revenues. It has stores in 12 countries across Asia, Europe and North America. The business began in 1919 with one man, Jack Cohen, selling groceries from a stall in the East End of London. Jack bought surplus stocks of tea from a company called T.E. Stockwell. T.E. Stockwell and Cohen combined their names to brand the tea Cohen originally sold TESCO tea. In 1929, the first Tesco store opened in north London. Tesco has expanded since then by a combination of acquisition of new stores, retail services and by adapting to the needs of consumers. Tesco has net profits (before tax) of around 3 billion. Tesco's primary aim is 'to serve the customer'. Keeping existing customers happy is important, as they are more likely to return. This is more cost effective for the business than acquiring new ones. In the UK Tesco now has over 2,200 stores ranging from the large Extra hypermarket style stores to small Tesco Express high street outlets. Tesco's original product range of grocery and general merchandise has diversified to include banking, insurance services, electrical goods as well as telephone equipment and airtime. Vision Tesco strives to achieve the following under its vision: Wanted and needed around the world A growing business, full of opportunities Modern, innovative and full of ideas Winners locally whilst applying our skills globally Inspiring, earning trust and loyalty from customers, our colleagues and communities

In order top achieve its vision TESCO has developed a 7 step strategy plan which is: To grow the UK core To be an outstanding international retailer in stores and online To be as strong in everything we sell as we are in food To grow retail services in all our markets To put our responsibilities to the communities we serve at the heart of what we do To be a creator of highly valued brands To build our team so that we create more value

Employee Roles at TESCO Tesco's employees work in a wide range of roles in both store and non-store functions, such as:

Customer Assistants on the shop floor either directly assisting customers or preparing orders for delivery to customers who have ordered online

Department Managers leading a team of Customer Assistants Warehouse employees who help catalogue and store clothing, food or brown goods in Tesco Distribution Centers or in stores Office-based staff working in a range of functions at Head Office, including Finance, Purchasing, Personnel or Marketing Logistics staff that plan and carry out the distribution of products to stores.

Training and Development at TESCO Tesco recognizes that increasing knowledge, improving skills and job satisfaction of employees are all vital to the continued growth of the company. Tesco's aim to expand and diversify requires the business to have the right people, in the right place, at the right time. Tesco employs people from a wide range of backgrounds and all employees have the opportunity to grow and develop. There are many factors that affect workforce planning at TESCO: The opening of new stores in new locations o Requires adapting to different demand of consumers o Training is provided according to type of demand In-store and non-store based posts may require different technical skills and competencies Identifying Training Needs Tesco regularly evaluates the performance of its employees in order to anticipate any possible skills shortages. This helps managers and employees decide whether they have the correct knowledge, skills, understanding and resources to carry out their job effectively. Before going through any training and development gaps are identified in the knowledge and skills of the employees and these are logged into to the personal development plan. Employees and line managers decide how they will fill these gaps by training or development activities.

Training Training is the acquisition of knowledge and skills in order for a person to carry out a specific task or job. Training benefits employees in several ways:

It increases their sense of ownership in the business. They become more organized, productive and flexible and are better able to meet the needs of internal and external customers. New skills and abilities in areas such as decision-making can empower staff, which makes them more effective.

Tesco offers employees both on-the-job training and off-the-job training. On-the-job training methods at Tesco include:

Shadowing a person already in the job shows the employee how to do it Coaching a manager or designated colleague will help trainees work through problems and inspire them to find solutions Mentoring a more experienced member of staff acts as an adviser Job Rotation or Secondment the trainee has the opportunity of covering their target role, taking full responsibility on a temporary or limited basis.

On-the-job training also has several advantages for the company:

It is cheaper than off-the-job training. Managers see progress and can help when problems arise to resolve them quickly. The employee is still working during training so is more productive. The employee puts learning into practice.

Off-the-Job Training It can be defined as the training that occurs away from the workplace and consists of internal or external programs to develop any of a variety of skills or to foster personal development. This type of training is used in Tesco for such employees who are trained for some specific new skill or for development of individual skills. The main areas covered in off-the-job training are team building, interpersonal communication skills, presentation skills and planning skills. Development Development extends the capabilities of a person to improve the job performance and is about helping a person to grow as well through gradual process. It indicates the gradual and long-term process relevant to the growth of personality and maturity

regarding their potential capabilities. The extension in capabilities, job performance and personal growth with the passage of time are the main objectives of development.

Existing Employees

New Recruits



School Leavers


Store Management Program Distribution Management Program

Commercial Development Program

Apprenticeship in Retail

TWIST Tesco Week In Store Together: A Store Experience Program for mangers. It involves spending five days in a store learning by doing, once a year, every year. TWIST reinforces TESCOs values and aims to improve knowledge sharing and help the office; stores and distribution work better for our customers. It covers all aspects of store operations, from the back door to the shop floor working as a Customer Assistant, including; receiving deliveries, working in the warehouse, filling, working on checkouts and the Customer Service Desk and this year completing a nightshift. OPTIONS It is a training and development programme in for those TESCO identifies with the potential to do a bigger or different job. TESCO aims to have 1 in 10 of their people on Options. It is a flexible programme that is adapted to their personal needs, which can last between 6 months to 2 years. It aims to develop a combination of leadership, general and operating skills through 'on and off' the job experiences and a clear process that is designed to provide transparent feedback and coaching. A schedule for the OPTIONS program Month 1 visit and work in all parts of a store to familiarize themselves. The new manager is allocated a buddy an experienced member of staff who they can go to with problems. Months 2-4, practice their knowledge and skills in real situations and identify any skills gaps Months 5-6 undertake a placement as a Department Manager Months 6-12 take on their first manager role Month 12 review progress with their manager and discuss future development.

Apprenticeships in Retail It starts every September in selected stores and lasts 12 months. It is a chance to gain a nationally recognized qualification awarded by City & Guilds. The apprenticeship is made up of three parts: Key skills - standard qualifications that help develop essential skills for success in education, employment and everyday life. National Vocational Qualification (NVQ) - a NVQ in Retail Level 2 is delivered on the shop floor by Tesco managers, which consolidates the practical skills and knowledge of retail that you will learn as you work for us. Technical Certificate - it's a multiple-choice test that you'll take under exam conditions. It tests the theoretical understanding of the retail business that you will have gained and trained for in the NVQ course. Evaluation of Training and Development Program Tesco provides tools for highly structured monitoring and evaluation of training and development. This includes scheduled tasks, timetables, measures and checklists. Employees assess themselves by setting objectives in Activity Plans, Personal Development Plans and recording outcomes in Learning Logs. These continue to measure their improvement in performance after training. Tesco also uses a more informal approach to development by asking employees to write down three things they believe they are good at and three things they believe they could do better. The employee identifies actions to continue to do more of the good things and improve areas they could do better. Managers and trainees hold a weekly informal review session as well as more formal four-weekly sessions to track progress against their personal development plans. The feedback is recorded and is carefully scored. Trainees are given a colour coded development rating:

Red where progress is not on schedule Amber where some elements need more work Green where all activities are on target Blue where the trainee is ahead of the programme and using skills to add value.

Conclusion It adopts a structured approach to training and development. It offers a variety of development programs for existing employees to ensure continued growth. It involves both the employees and the managers in the process. There is a focus on individual attention using the Personal Development Plan.