You are on page 1of 17

1 | Page

Assessor: Mr Mehfuzul Haque

Human Resource Management
Name: Liubov Lavrentiuk
BTEC HND in Business
ID:Submission Date: 23 March 2015

A report on Tesco`s Human Resource Management

Page 1

2 | Page

Table of Contents
Introduction:.......................................................................................................... 3
1.1: Difference between Human resource management and Personnel
Management:......................................................................................................... 3
1.2: Assessing HR function of Tesco:......................................................................3
1.3: Evaluating job role for Tesco Line Managers:..................................................5
1.4: Analysing the impact of regulatory framework:..............................................5
M1: Tesco Line mangers strategies for recruitment:..............................................6
D.1: Evaluating benefits of soft HRM:....................................................................7
2.1 & 2.2: Analysing Human resource planning for Tesco:.....................................7
2.3 & 2.4 Compare and contrasting with ASDA with Tesco`s recruitment and
selection process and its effectiveness:.................................................................9
M2:- Staff performance measurement technique for Tesco:................................10
3.1: Assessing link between reward and motivational theory:.............................10
3.2 Job evaluation process:..................................................................................11
3.3: Assessing the effectiveness of reward system in different job roles:............12
3.4: Assessing the methods used to observe staff performance of Tesco:...........12
M 3: Discussing on what uses of information obtained from staff performance:. 12
D2: Answer.......................................................................................................... 13
4.1 Termination of employment at Tesco:............................................................13
4.2 Termination procedure at Tesco and others:..................................................13
4.3 The impact of UK regulatory framework on termination procedures:............14
D3: UK regulatory framework affect on recruitment procedures:........................14
Conclusion:.......................................................................................................... 15
Reference:........................................................................................................... 15

A report on Tesco`s Human Resource Management

Page 2

3 | Page

This report is about Human resource management of an organisation called Tesco and how
it is operating with different activities. As a senior human resource professional point of view
Tesco operation has been overviewed as critically discussed with relevant theory and
examples. Tesco was founded by Jack Cohen from a market stall in East London in 1919.
The business has operating 12 countries around the world with 530,000 people and serving
10 million customers every week. Recently they have been facing trouble in top
management due to over rated forecasting problem in accounts; however they are still
consistently operating in UK. (Tesco plc, 2015) (The Telegraph, 2015)

1.1: Difference between Human resource management

and Personnel Management:
Personnel management is the older version of human resource management. However
there are significant differences between them as follows:
Bacon et al.,(1996) stated that human resource management is strategy centred and holistic
approach to management of a company where as personnel management involving
administration at employee concerns and managers demands which carried out by support

Decision making are collectively happen in human resource management after considering
employee participation as it decentralise system with competitive environment. However
decision making is happen by top level according to companys rules and regulation in
personnel management.
In addition personnel management has strong reliance on local labour market in terms of
most recruitment and very sophisticated practices for senior employees, where as human
source management has sophisticate recruitment for all staff. To be more precise core
employees have are preferable from internal labour market and greater relying on labour
market externally for non-core staffs. (Cole, 2004)

1.2: Assessing HR function of Tesco:

In order to achieve business goals, Tesco see human as a resource into through models
from recruitment to pension stages. People are not the same in personality and behaviour at
work place. Therefore Tesco able to approached for harmony and equality.

It can be said that a commitment based model plays a great role here which is not forcing
employees to meet frameworks at Tesco. In this model employees are emphasised by
A report on Tesco`s Human Resource Management

Page 3

4 | Page
psychologically which motivates them by taking employees opinions by the top management
of Tesco. Thus ensures employees are satisfied at Tesco healthy work environment, as it is
taken employees suggestion continuously.
One of the most important HR function is recruitment and selection, which Tesco does very
efficiently and effectively. There are diagrams below about the process:-

Exhibit 1.1: Recruitment methods of Tesco Plc (Stredwick, 2005)

Exhibit1.2: Candidate selection process of Tesco (Business case studies, 2015)

A report on Tesco`s Human Resource Management

Page 4

5 | Page
After the recruitment stage, successful candidate are taken two type of training such as on
the job and off the job training. There are key components which are outlined below:
1. Core skill programme:- It is a basic training for handling customer well for employees.
2. Winning in Europe: It is training about that aim to reach outside the UK for employee
working in different countries.
3. Excel programme: It is addresses training from basics to management qualification for
Tesco staff.

1.3: Evaluating job role for Tesco Line Managers:

Line manager or front line managers are lower layers of hierarchy of Tesco management for
instance team leader and supervisor roles. Their duties include monitoring and planning for
operation at work, day to day man management, allocation of work and schedules, dealing
with clients and customer, measuring operation performance with analytical ability. In
addition, it has shifted to recruitment and selection stages of Tesco for line managers.
Furthermore there is a clear objective setting in daily and weekly basis which help towards
the goal of the organisation. Therefore they work on behalf of human resource management
of Tesco and play a significant role. (CIPD, 2015)

1.4: Analysing the impact of regulatory framework:

Tesco follows UK legal framework to ensure that employees are in safe workplace. It makes
a complete awareness of any relevant legislation at work in UK, some are discussed below:
Health and safety: It is the key fact for HRM, which is vital for any organisation environment.
HR always deals with work related stress and prevents injuries and accidents, which is
essential and employees rights.
Data protection Act: Every employee have a right to know that what information is handled in
organisation they work for, and it should be private and confidential. Any discloser may result
in gross misconduct for organisation.
Equal opportunity and Equal pay act: It has great impact on HRM and provides an effective
work environment for employers and employees. The aim of this is that, fair opportunity at
recruitment, selection, supervision, participation and pay scale of an organisation towards all
types of people.

A report on Tesco`s Human Resource Management

Page 5

6 | Page

M1: Tesco Line mangers strategies for recruitment:

Line managers manage directly to employees or teams and responsible for in an
organisation. They report to top management of employees performance and wellbeing from
the recruitment stage. There are three strategies for line managers of Tesco that helps in
recruit new staff:

1. Internal recruitment:
2. External recruitment
3. Operational recruitment services

1. Internal recruitment:
At Tesco line manager could looks at internal in any position before they can go external
recruitment process. line mangers should always review the existing plan that is the
candidate met the current job criteria and update with the specification.

2. External recruitment:

In external recruitment, there is always vacancies advertised in online websites and their
own websites through step by step process and some specialise jobs such as pharmacists
and bakers are advertise through television and radios etc. Here, line managers could give
each candidate a clear understanding of the job role and current market situation with key
reason to join this organisation before taking interview. In addition line manager could map a
consistent hiring process for each new recruit for specific job profile. (Tesco career, 2015)

A report on Tesco`s Human Resource Management

Page 6

7 | Page

3. Operational recruitment services

This strategy suggest Tesco line managers that skill shortage, salary survey for new recruit
for local and international perspective view in terms of recruitment. Ensuring feedback
offered of each candidate after interview in a form. In addition direct hiring could be taken as
considerable subject to suitable candidate.

In addition reviewing all assessment with attraction strategy for recruitment package could
be beneficial for Tesco line managers. Line manager could arrange a focus group meeting
among existing and new employees to get key factor that attract.

Furthermore diversity and equality should be top priority in management positions for Tesco.
Nowadays social media such as Linked in, facebook, Twitter are most attraction to catch a
suitable candidate which helps quickly fill up the right candidates in desirable roles.

D.1: Evaluating benefits of soft HRM:

In Soft HRM approach, employees are treated individually with their needs, which planned
consequently and consider employee as most important resource and competitive
advantage. It focuses employee motivation, job roles and rewards which makes strategic
focus of an organisation as long term workforce planning. There is always consistent and
strong communication between employee and employer in this approach. Employees are
given profit share and share option related with their performance with competitive pay
structure. In addition soft HRM approach, employees encourage to delegation and
responsibility because they are empowered.

In terms of appraisal system, it address employee training and development needs, beside
this soft HRM organisation has flat structure which suit with democratic leadership style.

2.1 & 2.2: Analysing Human resource planning for Tesco:

Human resource planning of an organisation is a key process to move forward. It is about
employment rather than qualitative approaches of planning manpower.

A report on Tesco`s Human Resource Management

Page 7

8 | Page

Exhibit 1.3:

Manpower planning objectives:

Human resource professional must have clear objective and goals for this planning because
once it made, there is no way to resolve any error in short run. There are some significant
steps are discussed below:
Skills inventory:
Tesco current manpower can be adjusted according to demand and it should be assess, so
there will be less problem and uncertainty however managerial and supervisory levels
projection is compound problem. It is because of less availability in short notice. Nonetheless
it will help to meet the needs of certain skills in future.
Demand forecasting:
Reviewing manpower forecasting is a key to get appropriate human resource planning. It
should be attempted by Tesco human resource professional quarterly and yearly. There are
some factors need to be taken account by management as follows:

Productivity of employee
Employee trends
Replacement needs
Employment plans
Work study
Job requirement

A report on Tesco`s Human Resource Management

Page 8

9 | Page

Training and Development Programme:

It is essential to get training on the time frame for all type of employees to improve
performances. The development of managerial personnel could be devised as it has similar
importance called as executive development programme. Tesco cannot get out of best
outcome of talent employees if there is no full systematic training and development in place.
Appraisal of the planning:
An appraisal system must be effective on manpower planning after implemented the training
programme of Tesco. In addition manpower inventory should be updated periodically with
appropriate catalogue so that deficiency could be point out on the programme. As a result
connective action would be necessary to tackle the problem so that it will remove the

2.3 & 2.4 Compare and contrasting with ASDA with

Tesco`s recruitment and selection process and its

(i)Comparing recruitment and selection:

After analysing both companies recruitment process, it is found that Tesco spend more time
on recruitment and selection process than ASDA by using on the job evaluation (OJE)
system for job evaluation. However it is time consuming but very effective, which ensure
right person on right job role. (ASDA, 2015)

There is a great attention for Tesco and Asda on labour turnover percentage as both
company are dedicated to reduce it. As a result they follow a exit procedure for leaving
employees .in addition there is a exit interview in place so that it will find out the reason for
leaving besides staff will also explain i.e another job or grievance. Therefore these staff
criticism (salary, discrimination, promotion or environment) will help to improve and change
their policies over their competitors, otherwise if these staff go to their competitor and use
that knowledge to capitalise it. On the contrary if the performance is high Tesco and Asda
retain the employee
Retention:Tesco always offer transfer or alternative job to employees in store or other superstore
whenever the workforce needed. So in the redundancy situation employees agreement is
top priority for Tesco.

A report on Tesco`s Human Resource Management

Page 9

10 | P a g e
Similarly Asda keep employees in store or head office who performing in the same level,
which boost confidence of all employees. It creates good image of both Asda and Tesco.
Moreover there is always staff discount to motivate employees to retain, thereby good
employees improve productivity. These are retention process, which is used by other leading
organisation in the world as well.

M2:- Staff performance measurement technique for

Some researcher took goal achievement is a performance measurement technique and
others are on different things. Tesco does 360 degree appraisal system as we know however
following three significant techniques are key recommendation in order to improve
(i)Traits:It is more important that evaluating individual personal traits which is one of the significant
task of HRM. It will determine employee commitment and loyalty for the Tesco and line
manager here play a great role (Bratton and Gold, 2007).
(ii)Behaviour:Employee behaviour is a key to determine performance for An organisation like Tesco. For
instant what employee does or does not do. Poor time keeping, absenteeism, resigning from
service are the sign to determine. (Boselie et al., 2005)
This performance measuring technique focuses on employees outcome of during the
workplace for instance how many units has been done in a time frame? Or how many
customers complain in a day or week? etc.

3.1: Assessing link between reward and motivational

There are many connections between reward and motivational theory. There are several
motivational theories have been exist. The significant theories which have strong connection
are critically discussed below:Maslow discussed on his pyramid diagram how motivation link with reward for instance
managers always complement their job to some extent that they can have opportunity for
self-fulfilment. Furthermore mangers do not pay attention to money as a motivator instead

A report on Tesco`s Human Resource Management

Page 10

11 | P a g e
focusing on job enhancement as Herzberg theory suggests. (Hersey et al.,1988)
At Tesco it has been seen that both theory above mentioned works appropriately. For
instance if an employee achieve one level of Maslow pyramid then it encourage to the Next
level of Maslow pyramid. (Maslow, 1943)

Exhibit 1.4:Maslow hierarchy of needs (Ryan and Deci, 2000)

At Tesco motivates employee in many way such as good communication for staff, pay rise
discussion, showing appreciation, monetary reward such as weekly and monthly bonuses
and free lunch etc. In addition Tesco uses positive motivation techniques to persuade staff to
encourage quality job, moreover at Tesco, pension scheme, health insurance, car insurance,
discounts etc.

3.2 Job evaluation process:

It is a systematic process that define the worth or size of job role within an organisation in
order to set up inner relatives. Job evaluation provides the main basis of a job role with fair
scale, pay threshold and grading. (Armstrong and Taylor, 2014)
At the beginning, there should be clear objective from the HR personnel that the reason of
the evaluation and importance of it, cause it is to be orderly otherwise the outcome will be
error. The chosen job will be reviewed by HR committee with all department representatives
who investigate by analytically (factor comparison, propriety brands and points rating) and
non-analytically (job satisfaction and ranking with paired comparisons) in an organisation.

The extra factors which determine pay:

A report on Tesco`s Human Resource Management

Page 11

12 | P a g e
At work pay, is awards for job role which can be influenced by several factors, as it divide the
organisations and job roles. There are some extra factors which determine pay outlined
Profitability of the organisation, the industry sector, staff performance, size of the company,
job seniority, skills and experience of the job etc.

3.3: Assessing the effectiveness of reward system in

different job roles:
The rewards system is a part of every organisation HR strategy, consists of intrinsic and
extrinsic rewards. This reward system boost companies profit because improved
performance of the staff. Intrinsic rewards are creation of intangible satisfaction of the
employees such as feedback, recognition, trust, information and relationship. On the other
hand extrinsic rewards are tangible which employee gets due to performance, pay rise,
bonuses, gifts, promotion, commission, compensation etc. Therefore employee
psychologically motivate by reward. (Spreitzer, 1995)

3.4: Assessing the methods used to observe staff

performance of Tesco:
There are many appraisal system be can use to determine employee performance such as
360, 180 degree feedback, multi source feedback etc. At Tesco use 360 degree feedback,
where stakeholders evaluate each employees performance. For example a duty manager
gets feedback from other department, his or her team and HR department. In addition
performance evaluation is also used to determine actual performance against standard chart
of Tesco. Here employee is interviewed to find out strengths and weaknesses and resolve it
Performance standard has to be maintained by Tesco employee according to job criteria.
The performance has to be measurable, effective and efficient. However employee also
wants their job role objective as SMART (specific, measurable, acceptable cost, relevant and
time bound)
For monitoring purposes sometime Tesco outsource people to monitor employee behaviour
and performance for straightforward feedback so that Tesco can get accurate shape of the
workforce. (Podsakoff, 2003)

A report on Tesco`s Human Resource Management

Page 12

13 | P a g e

M 3: Discussing on what uses of information obtained

from staff performance:

In an organisation, performance assessment ensures regularity in reviewing employees. It

does limit the difficulty and improve staff performance. Here are three uses of information
from staff performance:
Performance standard develop:
The assessment gives clarity of expectation of the job role in place, not only for employee
but also for employer. A business firm can institute a performance policy which will be
develop standard according to demand to satisfactorily evaluation.
Organisation goal aligning with performance:
The company goals and objective could be aligns with performance assessment of
employees. In UK before taking performance assessment, employer should brief to staff
about what employee can do for the company. These outcomes provide a standard for any
Weakest link:
The outcome of performance appraisal can be used to determine weakest link of the
business, so that business can go different routes to resolve the problem such as more
training or redundancy of the staff. (Appelbaum, 2000)

D2: Answer
Appropriate referencing (Harvard British Style) and table of content included. Independent
research has been conducted throughout the assignment on wide range of topics.

4.1 Termination of employment at Tesco:

Cessation of employment may be consequences of number of matters such as redundancy,
retirement and dismissal. At Tesco follows employment acts appropriately. Employee gets
different forms of recognition after long service in retirement. When new starter join and sign
the contract under legislation with related to dismissal at Tesco. A fairly dismissal could be
happen if employee racially and sexually abuse someone or willingly destroy company
property, negligence, bad time keeping and financial discrepancy. (Magotsch and Pascal,

A report on Tesco`s Human Resource Management

Page 13

14 | P a g e

4.2 Termination procedure at Tesco and others:

At Tesco and ASDA employment contract can be terminated by either party at any time. It
could be dismissal, retirement, redundancy or resignation. There are some key points of exit
procedure outlined below:
Both the employer and employee are entitled to get minimum period of notice on
termination. Employee written statement has to provide during the time of resignation.
During the notice period Tesco and ASDA provide regular hours and payment has to be on
going and effective. The contract paper and terms and condition should be enclosed with
letter and the reason for leaving is optional. However Tesco and ASDA take it very sincerely
and tried to get the feedback from leaving employees so that they can improve better.
(ACAS, 2015)

4.3 The impact of UK regulatory framework on

termination procedures:
Cessation arrangement at Tesco requires that no employee is terminated on unfair grounds
which ensure employee are not forced to resign the position. It also ensures that employees
are terminated on fair grounds such as theft; violence and fraud are gross misconduct which
has spot sack. Under UK regulatory framework, before making a dismissal employer are
required investigate the circumstances so that it may be resolved by training or counselling,
if not then employment tribunal procedures.

D3: UK regulatory framework affect on recruitment

In UK every employer has to follow certain guidelines when it comes to recruit an employee.
Equality Act-2010 is the latest law that has to bear in mind by the every recruitment
manager. There are three ways its affect in recruitment of an organisation are critically
discussed below (ACAS, 2010)

A report on Tesco`s Human Resource Management

Page 14

15 | P a g e
(iii)Right to employment:

In UK, employer must not imply a job advert that discriminates against anyone. It includes
disability, age, sex, gender, sexuality and direct and indirect discrimination. For instance
when recruitment manager advert a job, it should not be only in man or women magazine
only otherwise it might cause indirect discrimination. Recruitment manager can use `highly
experienced` or `recent graduate` for only actual job requirements of the job role. However
this may cause discriminate against older or younger people who may not have the
opportunity. (, 2015)

At interview employer or recruitment manager be very mindful about disability, ethnicity, age,
religion, gender resentment related questions. For instance asking to a women are you
planning to have child in future? Would be absolutely inappropriate which is precautious by
UK law.

(iii)Right to employment:
In UK, it is by law that employer must check employee right to work, if it is EEA national then
they have legal right automatically. However non EEA national has to go through verification
check by UK Home office (UKVI). This one of the significant duty for recruitment manager,
beside this if anyone recruited illegal worker there is a civil penalty up to 20000 GBP by
government. On the other hand employee needs to go through criminal check record by
DSA for whoever works in health and education sector in UK.

A well defined framework is very important for an organisation for its Human resource role. It
is very important requirement as a must precondition for goal achievement. Human resource
professional has a vital role in decision making since it is dealing with Human. Tesco HR

A report on Tesco`s Human Resource Management

Page 15

16 | P a g e
department and its components are key to the attributed of their success. Thus, Tesco
creates a key position in the retail market.

ACAS, 23March 2015, 2015-last update, Termination of employment-notice period and
pay [Homepage of ACAS], [Online]. Available:
articleid=1650 [March/23, 2015].
ACAS, 2010. The Equality Act 2010- Guidance for emplyees. 1. UK: ACAS.
APPELBAUM, E., 2000. Manufacturing advantage: Why high-performance work systems pay
off. Cornell University Press.
ARMSTRONG, M. and BARON, A., 2000. Performance management. Human resource
management, , pp. 69-84.
ARMSTRONG, M. and TAYLOR, S., 2014. Armstrong's handbook of human resource management
practice. Kogan Page Publishers.
ASDA, 23/03/2015, 2015-last update, Jobs at ASDA [Homepage of ASDA], [Online].
Available:[March/23, 2015].
BACON, N., ACKERS, P., STOREY, J. and COATES, D., 1996. It's a small world: managing human
resources in small businesses. International journal of human resource management, 7(1), pp. 82100.
BOSELIE, P., DIETZ, G. and BOON, C., 2005. Commonalities and contradictions in HRM and
performance research. Human Resource Management Journal, 15(3), pp. 67-94.
BUSINESS CASE STUDIES, 01 January 2015, 2015-last update, Recruitment and Selection; A
Tesco case study [Homepage of Business Case], [Online].
Available: [March/19, 2015].
CIPD, 18 March, 2015-last update, The Role of Line Managers in HR [Homepage of CIPD],
[Online]. Available: [March/18, 2015].
COLE, G., 2004. Personnel and human resource management. Emerald Group Publishing Limited.
GOV.UK, 22 March 2015, 2015-last update, Employers: preventing discrimination [Homepage of], [Online]. Available: [March /22, 2015].
GREENWOOD, M.R., 2002. Ethics and HRM: A review and conceptual analysis. Journal of Business
Ethics, 36(3), pp. 261-278.

A report on Tesco`s Human Resource Management

Page 16

17 | P a g e
HERSEY, P., BLANCHARD, K.H. and JOHNSON, D.E., 1988. Management of organizational behavior.
KOCH, M.J. and MCGRATH, R.G., 1996. Improving labor productivity: Human resource
management policies do matter. Strategic Management Journal, 17(5), pp. 335-354.
MAGOTSCH, M. and KREMP, P.R., 2010. Termination of Employment. Key Aspects of German
Employment and Labour Law. Springer, pp. 135-155.
MASLOW, A.H., 1943. A theory of human motivation. Psychological review, 50(4), pp. 370.
PODSAKOFF, P.M., MACKENZIE, S.B., LEE, J. and PODSAKOFF, N.P., 2003. Common method biases
in behavioral research: a critical review of the literature and recommended remedies. Journal of
applied psychology, 88(5), pp. 879.
RYAN, R.M. and DECI, E.L., 2000. Self-determination theory and the facilitation of intrinsic
motivation, social development, and well-being. American psychologist, 55(1), pp. 68.
SAINSBURY`S, 20 March 2015, 2015-last update, Discover Sainsbury`s [Homepage of J Sainsbury
Plc], [Online]. Available: [March/18, 2015].
SPREITZER, G.M., 1995. Psychological empowerment in the workplace: Dimensions, measurement,
and validation. Academy of management Journal, 38(5), pp. 1442-1465.
STREDWICK, J., 2005. An Introduction to Human Resource Managment. Oxford: Elsevier
TESCO, 20 March 2015, 2015-last update, Tesco Careers [Homepage of Tesco plc], [Online].
Available: [March/20, 2015].
TESCOPLC, 21 March 2015, 2015-last update, History [Homepage of Tecoplc], [Online].
Available: [March/21, 2015].
THE TELEGRAPH, 23 March 2015, 2015-last update, The Answer to Tesco Problems lies in the past
with Sir Terry Leahy [Homepage of The Telegraph], [Online].
Available: [March 20, 2015].
TORRINGTON, D., HALL, L., TAYLOR, S. and ATKINSON, C., 2011. Human Resource
Management. 8th edn. London: Pearson Education.

A report on Tesco`s Human Resource Management

Page 17