HRM Policy and Process at Tesco
In this essay, Tesco Plc is selected to assess the HRM policy and process. Tesco is a multinational chain of grocery as well as general merchandise. This essay discusses the HRM policy and process that can help Tesco organizations to deliver strategic effect and contributing to competitive advantage in the last 15 years. Tesco was established in the year of 1919 and this is now global corporation. It was developed as a set of the marketplace that stands to support the consumers with their requirements at one place. In current times, it spread across the globe with its stores dealing in 14 nations across North America, Asia and Europe (Tesco, 2018). In the grocery market, it has 30% of market share in UK that deals in more than 60,000 stores at international level. The key product of the company is cash and warehouse club, superstore, hypermarkets, supermarkets and department store for selling different products associated with general and grocery use. Human resource is an essential resource for Tesco. There are over 500,000 employees in across all stores which creating revenue of about 64 billion Euros. It is assessed that all resources are effectively managed by Tesco and have allocated over time to become the leader in its targeted market (Tesco, 2018).
HRM policies and processes that have contributed to organization success over the last 15 years
There are different HRM policies and processes that have contributed to the success of the organization. Human resource planning is an essential elements of the human resource management system. Through the planning phase, Tesco is competent to collect adequate information over the existing HR of the company. This involves all the provisions, required human resources and competencies to attain the desired future perspectives as well as goals. This activity is required for Tesco to communicate the mutual goals regarding business strategy during the wider HR of the company (Banfield, and Kay, 2012).
Tesco is an employee-centric company because of direct interaction of customers with its workforces to attain needs of customers. As a retail organization, Tesco is extremely relied on its workforces for attaining goals as well as objectives. Tesco makes sure that the workforces are organised in a way that they act successfully in order to accomplish the goals of company when attaining the individual goals (Brewster Sparrow, Vernon, and Houldsworth, 2011).
Employee motivation is another HRM process used by Tesco. It is used to encourage employees to accomplish the goal of the company. In this way, Tesco uses certain motivational theories as well as strategies like reward theory, Maslow hierarchy of need theory and performance evaluation. Maslow proposed that motivation is the outcome of attempts of an individual in attaining five basic needs such as physiological, safety, social, esteem as well as self-actualization. As per the Maslow, these needs can generate internal pressure that can affect the behavior of an individual (Carberry, and Cross, 2015).
Physiological needs are those needs that are essential for the survival of an individual like water, air, food, sleep, clothing, and shelter. Manager of Tesco can meet the physiological requirement of workforces by offering a comfortable working situation, necessary breaks for using the bathrooms, as well as eat and dirks, and reasonable working hours. Safety requirements involve all those needs that offer an individual with a sense of security as well as well-being (Deal, and Kennedy, 1982). Safety needs entail financial security, personal security, and protection from accidents, financial security, and harms. Managers can meet the safety requirement of workforces by offering secure compensation, job security and a safe working environment that is particularly significant in UK (Gilmore, and Williams, 2013).
Employee Motivation and Training and Development
Social needs are also known as love and belonging that is defined as the need to feel a sense of acceptance as well as belonging. Social needs are significant to individuals hence they do not feel depressed alone as well as inaccessible. It is assessed that family, friendship, and intimacy all activities are used to meeting the social requirements. Managers can identify the social needs of employees by ensuring each of their workforces knows one another, being an accessible and kind supervisor, motivating cooperative teamwork as well as endorsing the good working life balance (Mankin, 2009).
Along with this, esteem need is defined as the needs for self-esteem as well as respect being slightly more significant as compared to the increasing respect as well as admiration from others. Managers can attain the esteem needs of workforces by providing recognition and praises in which the workforce does well and providing the additional accountabilities as well as promotions for reflecting the opinion that they are appreciated workforces (Mello, 2015).
Self-actualization needs illustrate the need of an individual to arrive at their full potential. The requirement is to assess the individual who is competent to do somethings that is extremely personal. When an individual has requirements to become a good parent then he might have the requirement to keep the managerial level position at the workplace. Since, this requirement is adapted hence manager can identify the requirement by offering the inspiring performance, attractive the workforces for participating in the decision making and offering them flexibility as well as self-sufficiency in their jobs (Northouse, 2015).
Training and development is key emphasize of Tesco HRM department. By using this methodical strategy, Tesco has been involving the training in order to make ongoing development of skills of employees. Along with this, observing the efficiency of training is performed by the line manager of Tesco (Reees, and Smith, 2014).
The legal and regulatory framework in the context of HRM
The performance relies on fair treatment of workforces at workplace. This regulation focuses on fair deals in certain activities of HRM like selection, recruitment, allotment and job role. In addition to this, fair treatment should be used within every activity of HRM such as nationality, race, and gender in the system of payment (Schein, 2004).
By using this regulation, discrimination over entities is restricted at the workplace. There are certain elements of legislation that covers the activities of discrimination. These discrimination acts are related to sex, race, and disability. In addition, sex discrimination act 1975 emphasizes on discrimination about the gender. Race discrimination act 1976 prohibited the practices of discrimination on considering race (Advisory, Conciliation and Arbitration Service, 2018). Disability discrimination act 1995 is monitored and performs regarding the disability of the workforces.
As per this law, Tesco will provide the right of having less amount of holiday for each year. Moreover, the grievances related to excessive working hours is becoming a key concern that may create the illness, depression, and stress within the workforces. This act could be forced with the intention to keep the health and safety of workforces (Chartered Institute of Personnel and Development, 2018).
Legal and Regulatory Framework of HRM
By using the act, workforces have the right to access the data in Tesco. This act can impose the organization to keep the individual data safe.
Tesco assesses the performance of its workforces by the support of feedback from the line manager for the store employees. For the line managers, higher employees provide feedback regarding their conduct within an organization. The feasible technique to evaluate the performance of workforces is the appraisal of the workforce’s usefulness as well as efficiency within four months. Another technique that is applicable to monitoring the performance of workforces is an online portal mechanism, continuous assessment, target-based mechanism, and direct monitoring of all practices (Gov.uk. 2018).
An effective reward system supports the workforces to get encouraged for acting in an efficient and effective way. In addition, the reward system of Tesco illustrates the kinds of advantageous and workforces may perform their job in a specified way. Tesco offers different rewards to its workforces for attaining their task in a targeted way. These rewards factor can be compensation, progression, business trips, promotions, and relocating as per desire of workforces. Moreover, Tesco has a significant reward system that motivates workforces to work for the company in the best possible manner (CIPD, 2018). The success of Tesco highly relies on the effectiveness of reward systems, which is applicable to the workplace.
As Tesco grows, the company might have additional operational and administrative requirements that cannot be attained by existing employees. Instead of hiring the contractors and additional workforces, the company should consider providing employees with training. It can add development of employees, and human resources planning such as on-site training, sending employees, education repayment and sending employees to workshops and seminars (Chartered Institute of Personnel and Development, 2018).
Tesco can develop the most favorable workplace to influence most of the employees. It should provide clear job descriptions and annual reviews, morals developing practices, wellness initiatives like contests or outings, frequent communications regarding departments, individual and successes of the company (Reees, and Smith, 2014).
In Tesco, the HR manager should work with the Insurance Corporation, security professional, local fire department and employment expert in order to ensure the legal requirement as they apply to employees. It also involves the federal labor regulations, generating an innocents and secures office space, plant, instituting, warehouse and applying company strategies as well as processes and paying all required insurance and taxes (Brewster, Chung, and Sparrow, 2016).
Job evaluation is a significant part of human resource management due to using several compensation laws. Another elements that plays a significant role in choosing the pay for workforces of a company could be outside to workforces and society. These elements involve business situation at a specific time, economic atmosphere of the nation, the scenario of rivalry in the industry, and financial health of the company. Tesco decides to pay for its workforces by including all these factors (Armstrong and Taylor, 2014).
Tesco uses recruitment factors on a continuous basis with the support of internal, external as well as some different manners. These procedures make sure that corporation receives applications from all the matched applicants. It initially checks for the internal resources in order to meet any profile available within an organization and then seek out external resources by shortlisting the CVs of the applicants as per the profile. Along with this, referral procedure is also included at the workplace (Bratton, and Gold, 2017).
Equal Opportunities and Discrimination Act
Workforces could be terminated at the workplace because of different causes such as the elimination of organizational regulations with rules by the workforces for their personal benefits. It may adverse effects at the workplaces. Moreover, unlinked personal and organizational goals are generating the conflict in the work for the workforces and declined performance by the workforces. Furthermore, non-performance of workforces as per the standard may diminish the efficacy as well as competences of the company (Bailey, et. al., 2018). In addition, negative business atmosphere for a corporation such as recession may decline the sales from the company. The unacceptable attitude of workforces may obstruct the organizational image. Legislative orders are used to terminate the specific workforces by the court of law. In addition, personal reasons for workforces such as location change, job switch and marriage (Brewster, Chung, and Sparrow, 2016).
Internal (Organisational) or External Environment factors have affected the delivery of HRM policy and practice within the United Kingdom in the last 25 years
There are different internal and external factors that have affected the delivery of HRM policy and practice within the UK in the last 25 years.
The amount of compensation a business provides workforces to the company and keeps them away. HR continually assesses the compensation structure by conducting a survey related to location and industry-specific salary. It would ensure that salaries remain viable in order to retain and attract the employees but there is low enough that Tesco remains economically reasonable. HR makes sure that the structure of internal payment is fair. For instance, experienced employees with proficient qualification can perform well as compared to recent college graduates performing the same projects (Reiche, et. al., 2016).
Human resource practices consider different factors such as training their employees before endorsing them while their recruitment strategies rely on internal promotion. They can monitor retiring workforces so that replacement provisions are made in time. For instance, when Tesco is engaged to endorse from within an organization, HR should make sure that workforces receive feasible training and development to be ready to endorse while the time comes (Brewster, Mayrhofer, and Morley, 2016). In addition, HR can assess the number of workforces qualified for retirement and makes sure the potential replacement and other employees are skilled to eliminate a rapid removal of business.
Organizational structure is an outline of the association between a position in the company and also members. The requirement for organizational structure review should always be leading things at the workplace. It can make sure the growth and development between workforces. When a company does not review the organizational structure lately and never generated comprehensive organizational charts, it should focus on performing so. The key is to take full advantage of the human resources functions is to identify the needs of staffing (Albrecht, et. al., 2015). The company can generate an organizational chart, ranking each position as well as clearly outlining who performs for whom. It can write a job description for each position in order to complete the tasks. HR manager does not afraid to involve the position for which they do not have employees or to leave out employees who do not fit into the optimal organizational chart. Once an HR manager identifies these holes and redundancies then, they can better plan regarding how to address them (Brewster, et. al., 2016).
European Working Time Directive
The uncertainty caused by the decision of UK related to leaving the EU is being felt on the ground by talent and recruitment professionals. It is addressed that there is increased cautiousness in potential applicants and about the same percentage is identified related to increased cautiousness in the recruitment of the company (Wilton, 2016). Along with this, organizations anticipate that as consequences of Brexit vote, HR managers may face complexity in recruiting senior and skilled/technical workforces together with they may also face complexity in recruiting operational employees. While it comes to employing migrants, then despite the Brexit decision, the high amount of consumers prospecting that they will recruit the EU migrants in the year of 2017. It is similar to the proportion performing so in 2016, across all fields (Albrecht, et. al., 2015).
How prevalent are hard-to-fill vacancies
The labor market is presently competent to attain the requirement of some employers with respect to labor demand. There is a high unemployment rate and it has affected different individuals in the UK. In this nation, Tesco is struggling to fill their vacancies and it is assessed that there is a lack of qualifications, skills as well as an experience between applicants. This is the main cause of recruitment complexities. The experience of skills shortage vacancies differs greatly by sector (Reiche, et. al., 2016).
Technology is a key factor that affected food retailers. There is over 70% of UK population exercises internet and it has observed that there is 50% growth in the subscription. Furthermore, online shopping for grocery products has developed a stable growth throughout the years.
The loyalty program practiced by Tesco such as Tesco club card supports in retaining the consumers. It also provides promotional offers thereby discouraging customers from switching to their rivalries (Bratton, and Gold, 2017).
Tesco mobile application is available, particularly for the 4G phones like iPhone that instructs the users regarding nearby Tesco shop in their surrounding areas. Online shopping provides different benefits because of wider reputation of internet practice between the residents of UK. It is evaluated that more than 70% of UK population uses internet broadband (Armstrong, and Taylor, 2014).
Economic factor has directly affected consumer buying behavior. Therefore, it is a key factor for Tesco. The UK was formally comes in recession category since year of 2008; however, the discount in rates of interest by government helps in reducing the rate of unemployment.This has made the confident among consumers regarding the financial position and thus lead to increase in the power of customer’s spending (Brewster, Chung, and Sparrow, 2016). But, the crisis is not fully finished and interest of customers is increasing to spend on premium products. A favorable concept of recession that is less spend by customers on eating out and rather than eating more at home and hence revenues for grocery market like Tesco is increasing. In addition, the customers reduce expenditure on food and spending proportion on food has gained over the period (Albrecht, et. al., 2015).
Conclusion
From the above discussion, it can be summarised that there are different HRM policies and processes that have contributed to organizational success over the last 15 years. These policies are processes are employee-centric, employee’s motivation, training, and development, legal and regulatory framework, employee performance monitoring, the effectiveness of the reward system, job evaluation, recruitment and selection procedures. Moreover, there are different internal and external environmental factors that have affected the delivery of HRM policy and practices within the United Kingdom in the last 25 years. These internal factors are compensation, employee’s relation, and organizational structure. Along with this, external factors are political factors, technology factors, and economic factors.
Reference
Advisory, Conciliation and Arbitration Service. 2018. What we do. [Online]. Available at: https://www.acas.org.uk/index.aspx?articleid=1461 (Accessed: 07 December 2018).
Albrecht, S.L., Bakker, A.B., Gruman, J.A., Macey, W.H. and Saks, A.M., 2015. Employee engagement, human resource management practices and competitive advantage: An integrated approach. Journal of Organizational Effectiveness: People and Performance, 2(1), pp.7-35.
Armstrong, M. and Taylor, S., 2014. Armstrong’s handbook of human resource management practice. Kogan Page Publishers.
Bailey, C., Mankin, D., Kelliher, C. and Garavan, T., 2018. Strategic human resource management. USA: Oxford University Press.
Banfield, P, and Kay, R. 2012. Introduction to Human Resource Management. 2nd Ed. USA: Oxford University Press.
Bratton, J. and Gold, J., 2017. Human resource management: theory and practice. Palgrave.
Brewster C, Sparrow P, Vernon G and Houldsworth E. 2011. International Human Resource Management. 3rd Edn. London; CIPD.
Brewster, C., Chung, C. and Sparrow, P., 2016. Globalizing human resource management. Routledge.
Brewster, C., Houldsworth, E., Sparrow, P. and Vernon, G., 2016. International human resource management. USA: Kogan Page Publishers.
Brewster, C., Mayrhofer, W. and Morley, M. eds., 2016. New challenges for European resource management. USA: Springer.
Carberry, C and Cross, C. 2015. Human Resource Development: A Concise Introduction. London; Palgrave.
Chartered Institute of Personnel and Development.2018. The professional body for HR and people development. [Online]. Available at: https://www.cipd.co.uk/ (Accessed: 07 December 2018).
CIPD. 2018. Brexit impact on workforce trends. [Online]. Available at: https://www.cipd.co.uk/news-views/brexit-hub/workforce-trends (Accessed: 07 December 2018).
Gilmore, S and Williams, S. 2013. Human Resource Management. 2nd Edn. USA: Oxford University Press.
Gov.uk. 2018. The UK Government Portal that carries details on all legislation, policies, etc. [Online]. Available at: https://www.gov.uk/ (Accessed: 07 December 2018).
Mankin D. 2009. Human Resource Development. USA: Oxford University Press.
Mello J A. 2015. Strategic Human Resource Management. 4th Edn. USA: Cengage.
Northouse, PG. 2015. Leadership: Theory and Practice. 7th Edn. London; Sage Publications Ltd.
Reees, G and Smith PE. 2014. Strategic Human Resource Management: An International Perspective. London; Sage.
Reiche, B.S., Stahl, G.K., Mendenhall, M.E. and Oddou, G.R. eds., 2016. Readings and cases in international human resource management. USA: Taylor & Francis.
Schein, EH. 2004. Organizational Culture and Leadership. 3rd edn. San Francisco; Jossey-Bass.
Tesco. 2018. About us. [Online]. Available at: https://www.tescoplc.com/about-us/ (Accessed: 07 December 2018).
The deal, T.E., and Kennedy, AA. 1982. Corporate cultures: the rites and rituals of corporate life, USA: Harmondsworth, Penguin.
Wilton, N., 2016. An introduction to human resource management. USA: Sage.
Order an Essay Now & Get These Features For Free:
Turnitin Report
Formatting
Title Page
Citation
Outline
