The retail industry and Human Resources

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Retail industry is one of the fastest multi-billion pound and growing enterprise of today's world. It is exciting, never boring and offer unlimited opportunities to millions of people. The retail industry is diverse enough for people to work in different areas of interest and still be employed within the retail industry. This trend is not only following in UK, but also in all developed and undeveloped countries.

In this modern era retail industry is providing its best services to their customers. The customers are always right. To manage in the retail industry this is the best principle to fulfill the necessities of the customers. Retail professional realize the importance of its principle.

The recruitment and training programmers are required to be developed in the face of technological sophistication. The leading companies have been found promoting an ongoing training programmed so that the personnel come to know about the use of sophisticated communication technologies.

Tesco is the largest British retailer and the world's third largest grocery retailer. It has outlets across the Europe, USA and Asia. Jack Cohen began this business in 1919, selling groceries from a stall in the East End of London. He bought surplus stocks of tea from a company called T.E. Stockwell Cohen and T.E. Stock well combined their names to brand the tea Tesco tea. The first Tesco store opened in 1929, 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. The primary aim of Tesco is 'to serve the customer'. It is important to make their existing customer happier, as they are more likely to return. To acquire new ones then it is more cost effective.

Tesco now has over 2,200 stores In the UK, ranging from the large Extra hypermarket style stores to small Tesco Express high street outlets and it is the Britain's biggest private employer with nearly 260,000 staff. Tesco's original product is grocery and general merchandise. But over the period of time it has diversified to different services like banking, insurance, electrical goods, telephone equipment and airtime. It has also expanded its customer base through its website which attracts one million of users regularly. All their products are available on the Internet 24 hours a day. Now customer can meet their all-purchasing needs from one place.

Retail market has become very competitive. The consumer has a choice where to shop for their groceries. Their slogan 'every little helps' is used to show their commitment to customers, this has been used to reduce prices and to increase the level of customer service.

Tesco has net profits (before tax) of around £3 billion, taking them setting a new milestone for UK business. The company takes almost one of every three pounds spent in a super market, and more than one of every eight pounds spent on the High Street. This profit Tesco uses to support research and development programs and its aggressive international expansion plans.


Task 1


Human Resources Management:

Human resources management is one of the most important features of many businesses, especially in an economy where there is an increasing shift towards service-based industries. Human resources account for a large proportion of many businesses' costs and it is the people that invariably drive a business. Management of these resources therefore is an integral part of business success.

William R. Tracey, in The Human Resources Glossary defines Human Resources as:

"The people that staff and operate an organization … as contrasted with the financial and material resources of an organization. The organizational function that deals with the people..."

Long a term used sarcastically by individuals in the line organization, because:

It relegates humans to the same category as financial and material resources; human resources will be replaced by more customer-friendly terms in the future.

 The human resource department presented with opportunity to become significant player on the management team occurring because HR function is being transformed into significant management function.Environmental changes are confronting organizations with people issues of great importance and uncertainty.People issues are thus becoming formulated as significant business issues. One result is that line managers are reaching out to take control and ownership over the HR function. This is being facilitated by many HR departments that remain focused on issues involving functional expertise rather than business-relatedness. Examples exist, however, of companies in which the HR departments are seizing the opportunity to become vital members of the management team and working with line managers to tackle the people related business issues. Doing so, however, appears to require virtual repositioning of the HR department.

Human resource development served the needs of organizations to provide employees with updated expertise. Advances in HRD models and processes have kept pace with the increasingly sophisticated information and production technologies that continue to diffuse throughout our nation's most vital industries (1994). During development, the HRD function could be relied upon to support broad range of business initiatives that required a competent workforce. Critical business issues, from new marketing strategies to innovations in production technology, were based on, among other factors, the performance capabilities of those expected to use these new work systems. As a factor integral to business success, employee expertise itself has been expanded through effective programs of employee development. The primary means of sustaining an organization's competitive edge, HRD serves a strategic role by assuring the competence of employees to meet the organization's present performance demands. Along with meeting present organizational needs, HR Serve vital role in shaping strategy and enabling organizations to take full advantage of emergent business strategies. Both the strategy supporting and strategy shaping roles of HRD have distinctive features that are evident in the business practices of successful companies.


The HRD function has long been relied upon to support broad range of business objectives that require competent employees. Business objectives themselves are almost as diverse in nature as the wide range of organizations that articulate them. Business objectives can span long and short-term time frames, and focus on broad business issues and more specific issues. The rationale for using HRD interventions to support business objectives is quite straightforward: Enhancing employee expertise through HRD increases the likelihood that business objectives will be achieved (1995; 1994).  Research will use explorative method and case analysis describing why human resource management decisions are likely to have an important and unique influence on organizational performance research forum will help advance research on the link between HRM and organizational performance. There identify key unresolved questions in need of future study and make several suggestions intended to help researchers studying these questions build cumulative body of knowledge that will have key implications for both theory and practice.

B. The Human Resource Department sets the smart objective to achive the organization objective and goals.

The first objective of human resource department is to set the planning for smart objective to focus on their customers and achieve the organization objectives and goals. These plans involve the global market place and the future.  Human resource department ensure that right number of individual is properly placed at the proper position.

To ensure that the right person is on right job quality of work is the main concept. For quality of work there are some important factors such as managing and supervising style, autonomy and freedom, for making decision on the job, satisfactory of hours, job safety, satisfactory physical surrounding, and objective needs to be achievable and should linked to organizational objectives.

Tesco sets the SMART objective serves as a guide to achieve such a goal. It believes that giving the opportunities to its employee enable them to do the right things at the right time. The real effectiveness of the work can be getting to focus on doing the right tool to the employee to perform the task to achieve the objective.

Human resource department recognizes the strategic role of their HR people. It is their responsibility to develop, implement and ensure that their strategies achieve the business goals and delivers commercial objectives. . The priority of the HR people is to successfully provide a high quality HR service to the business. People-related issues are dealt with in systematic way through the implementing group.




The Tesco one of the main aims is to monitor and evaluate the costs and benefits of its training and development activities for financial and non-financial reasons. For this purpose it needs to know that the investment is on time and producing improvement. It reflects in their behavior with the customer and inspires higher number of customers to come Tesco with confidence.

The three function of the Human resource:

The main function of the human resources is recruitment, selection, training and development of the staff. This means selection of the right people, training and developing them. Through this process they achieve their maximum potential and high levels of morale and motivation. The three main functions of the human resource of Tesco are as under.


Recruitment means appoint the best person to do the job. For this purpose Tesco advertises their jobs in different ways. The process of the job is depending on the job available. First they do internal recruitment. For this purpose they first look weather for their internal talent to fill the vacancy. Through this process their employees look for a move either at the same level or on promotion. If there is no suitable person, then Tesco advertises the post internally on its intranet for two weeks.

For external recruitment, Tesco advertises its vacancies via its Tesco website or through vacancy boards in stores. Their website covers a lot of information about the organization its vision and expectation from their applicants. . The search tool shows all vacancies in the organization available. There they can find the job and apply for the job.

If the applicant thinks he is the right person for the job he or she may click on the apply button and will be ask to register on the site. This is necessary so that Tesco already has information about her education, work history etc. After registering they can send in their application form to the recruitment center, here the forms are collected and compared.

2. Selection:

Selection is a process, which Involves choosing the most suitable people from those that apply for a vacancy, whilst keeping to employment laws and regulations. The very important part of the selection process is screening the candidate. This ensures that those person that are selected for interview have the best fit with the job requirements

In screening there are two stages. In the first stage of screening, Tesco selectors look carefully at each applicant's curriculum vitae (CV). For getting a job CV plays the vital role to introduce the candidate in front of the selectors. It summarizes the candidate's education and job history to date. A well-written and positive CV helps Tesco to assess whether an applicant matches the person specification for the job.


Finally the chosen applicants have an interview followed by attendance at an assessment center for the final stage of the selection process.

3.Training and development:

The Human Resource department at Tesco during the past decade has introduced a high commitment model, which offers training and development to all employees. They have developed their culture through extending their logo every little helps to prove their commitment to employees as well as to customers. This has proved a world class model and very successful for the organisation. The role of HR within the organisation has increased in importance. Through their introduction of strategic HR policies, which has led to an increase in business.

Tainting is the acquisition of knowledge and skills in order for a person to carry out a specific task or job. This has demonstrated they are a first class provider of training to their employees, and has given scope for the organisation to expand into new markets. 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's business image also benefits, as customers are more confident in the competence and knowledge of staff. This in turn helps Tesco grow.

Tesco has a flexible and structured approach to training and development, which adapts to individual employee needs. This allows people identified as having the potential and desire to do a bigger or different role to take part in training to develop.

For the employee, on-the-job training is directly relevant to their work, they get to know the people in their area and feel part of the team faster. 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.



Tesco's profits have soared 20% in the last year, taking them to a record 2 billion and setting a new milestone for UK business. Tesco is the UK biggest private retailer with nearly 260000 employees. From every three pounds, which is spent in super market, goes to Tesco and more than one of eight spent in high streets.

Future concentrates on providing a clear way of defining roles, responsibilities and activities. The system guarantees that all employees are responsible, accountable, consulted and informed. A group of 13 key management techniques is used to improve the core skills of the workforce. The techniques include root cause analysis, problem solving, plan-do-review, situational leadership and coaching for high performance

For the first time, people have been made a core element of strategy. Putting a senior director in charge has recognized the importance of this strand of the project. Quarterly board meetings always review human resource issues. Tesco now tracks human-resource information as closely as financial results

In the future, TESCO wants to continue emphasize on to increase the skills of its workforce. The firm aims to make learning into a truly integrated part of its culture, as an important way of developing organisational flexibility and remaining one step ahead of its rivals


A. Human Resource indicates and monitored the performance

For financial and non-financial reasons the business monitors and evaluates the cost benefits of training and developing trinities. The business needs information of its investment in time and money. Are they producing improvements or not. Employee's confindence and progress if they get positive and structured feed back. This will result in good behavior with customers and will build customer loyalty and confidence. That is what Tesco aims to achieve.

Tesco has tools for monitoring and evaluation of training. Different methods are used for evaluation and development. Mainly scheduled tasks , timetables , check lists and measures are taken under consideration. Employees are assessed by objectives in activity plans, personal development plans and records of learning logs. After training the improvements are measured and performance is recorded. SMART objectives are needed in the activity plans.

Specific - describes exactly what needs doing

Measurable - has a target that can be measured against

Achievable - is possible within the trainee's current role, skills and experience

Realistic - is achievable within the time and resources available

Time-framed - has a clear deadline.


A method known as 360-degree appraisal is also used at Tesco. In which all stakeholders contact with the employee and assess his performance and give feedback.

Taking an example managers give feedback to there own department managers, other department managers and HR department. Which helps in identifying areas, which need further improvement.

At Tesco another approach is used for development by asking the employees to write three things they are good at and three things they can do better. The employee identifies actions to continue and do more and improve areas they could do better.


Virtually all organisations are allotting at least 30% of their total revenue for employee compensation. While compensation expenditures are evaluate to determine their effectiveness, performance that is the basis of compensation should be also assessed. HR performance is not an exemption and also that of Tesco's. Basically, Tesco's is using a market leader strategy when it comes to compensating workers. Such a strategy enables the organisation to attract and retain workers with the required capabilities as well as to acquire the opportunity to increase the productivity of the workers (Mathis and Jackson, 2007, p. 366)

It is a big challenge for the Tesco that they ensure that all their worker well aware from their role they perform, and they understand well that how their action can affect the organization goodwill of the overall business. Tesco has created very nice training program for their employees. The main purpose of training is to achieve the business goals, financial aims, their business value, operation, marketing strategy and its commitment with the customers.

The human-resource strategy at Tesco's revolves around work simplification, challenging unwritten rules, rolling out core skills to all head-office employees and performance management linked to achieving steering-wheel targets. This highlights the way in which Tesco's business measures are closely linked to performance management (Anonymous 2003).

Tesco management always ensures that each and every employee who is working, has the opportunity to understand his or her individual role in contributing to the Tesco core purpose and values. This requires an innovative induction programmed that caters for different cultures, styles of learning and varying commitments to the job. The frontline employees are considered the ultimate reflection of Tesco to its customers, but all employees have a very important role to play in turning core values and customer commitment into reality on a daily basis (Whitelock, N. 2003).


In the last the essential element to sustain a continue growth of Tesco and for the strong foundation of continuing growth, Tesco has structured approach to training and developing its existing and new employees. Efficient and effective training and development is necessary in this increasingly commercial world. Those employees who are committed and flexible in order to aid its expansion of the business, Tesco gives them chance to become their member. For expansion of Tesco it rely on retaining their existing customers and acquiring new ones. To make happy and confident their customer Tesco relies on their committed and flexible employees, who deliver the highest standard of services to meet the organization objective.