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Tesco was started in 1919 by Jack Cohen as a grocery Store. Like every business, Tesco has seen downturn as well and there was a time in early 1990s that it was about to wind up its business.
It initially caters in food and later expanded its area of business like clothing, electronics, financial services and telecom. So the Tesco's has set up the store namely Tesco extra, Tesco metro and Tesco express in order to meet the customer's needs.
Since Tesco is considered a one stop retail outlet that has covered every segment of market in the country and it shows Tesco has a great number of manpower. Tesco proudly has around 400,000 employees in all 14 countries that it operates and boasts of a retention % which is lower than the Industry's average of 35%. (personneltoday.com)
Tesco is the biggest super market in UK. It has been dominating in British retail sector with domestic market share and global sales.
HR planning and its Strategic Objectives
Strategic capability is the ability to perform at the level required to survive and prosper. It is underpinned by the resource and competences of the organization.
Tesco focus on human resource based strategy which revolves around work simplification challenging unwritten rules, core skills and employees performances. It focuses on performance management. It can develop strategic capability in following ways:
Resource based strategy:
Tesco operates its business under four banners Extra, Super store, metro and express. Tesco Express is the smallest store in terms of area. It occupies 735 stores in all over the UK. Coming to Tesco Metro they are 7.3% of the land area of the UK. The famous store is Tesco Super store which occupies 53.7% of the land area of the UK. Finally the Tesco Extra is the largest in terms of area which covers over sixty-thousands square per feet. Thus the Tesco's stores are spread strategically all over the UK.
Through the decades Tesco has been earning profit. According to the annual report of the 2005, it has accumulated over two million pounds profit. Also in 2010, it has able to make profit. This annual reports indicate that the Tesco is more than financially capable funding strategic plans and policies.
Tesco has introduced loyalty system with their core costumer. Introduction of club card system has really help to establish the loyally among the costumers. This is the system of showing gratitude to its loyal customers.
Tesco always look after its employees. With tanning and carrier opportunities it has been able to maintain of 84% of retention. This shows employees are loyal to the companies and vice versa.
Tesco is strategic capable achieving this two factors i.e accruing loyalty and brand (Tesco) became synonymous with the concept of super store and groceries in the UK. Tesco has to develop long and consistent strategy for its growth. Main purpose of strategy is to Borden scope of the business for long term growth by following the customers into large expanded market like financial services, non-food and telecom and other new markets in, like Asia and other parts of the world.
Therefore, human-resource business strategy has really helped Tesco plc to take over and lead its rivalry like Sainsbury, ASDA, and other supermarket sector. Tesco's strategic policy aim was to free up stores employees so as they could improve customer service.
Legal and organisational frameworks for the employment of staff
Recruitment is the process of new employment which is consists of important steps. Some of the important steps involved in recruitment are call for application, criteria allocation, short listing, interview, salary negotiation and offer of employment. It's all about acquiring more human resource as per requirement which can be met in different ways like open day recruitment, application through own website, from agencies on contractual basis, interview from campus and finally internal job posting (IJP). Every job offer should be incompliance with the rules and regulations. Some of the important rules and regulations are:
Equal Pay Act (1970).
Sex Discrimination Act (1975),
Race Relations Act (1976),
Disability Discrimination Act (1995),
Employment Protection Act (1978).
Tesco plc is one of the organizations in the UK that follows very strict procedure of recruitment with aware of various acts. Every different position has its own unique procedure. Most of the selection is done through online system like customer support agent and its immediate higher level appointments and so on. Before any direct interview the candidate is short listed by an online procedure by general aptitude test. Then those who pass the test are called for interview thereby saving time and energy from both sides. Direct application is also available in store which helps in the same way. For higher management positions, there are a few ways like appointing external agencies and direct reputed institutions and also through internal job posting.
Tesco's approach to its recruitment and selection activity is definitely different from the standard approach that expresses recruiting young people and limits the age group to 45 or 50. However, for instance, it has recruited one blind employee, through an initiative by Therese Procter, the HR Director. Also, the employee age group extends up to employing 70 years old.
Tesco's approach for Recruitment and Selection
Tesco has 2 training schemes for Store and Office based roles, through which every year 80 to 150 graduates are recruited.
As Catherine Glickman rightly puts it in one of the interviews that there is no trial period for new recruits. If someone is a right candidate, they are recruited with a long term commitment.
However people have a 'job sample' option, where they can work with Tesco for a short period to see if they like the working culture.
Tesco uses common recruitment methods like conducting events n local regions, adverts in the stores, employee referral scheme.
Tesco also initiated a health awareness programme in 2008 for new recruits as part of induction, where they started distributing workbooks and DVDs to stay healthy at work.
Effects of the Organizational Environment on Staff
Well, Tesco believe that costumer should not shop at its store. They fell that they should make costumer to come back with best possible experience.
Tesco always work after its people, respect and treat the colleagues equally. This type of act really helps in achieving the company goal. If company trust its employee with respect then they will also look after costumer.
Tesco believes that, everyone's job is to help costumer first. For instance we can see during busy time like Christmas and Easter all staff are working really hard to help costumer in all the stores.
Changing work practice
There are various ways of working practices. White collar-workers are the people who only work from 9 to 5 in a day. A numbers of various options have come up to take account of changes in the labour market. Like shift patterns (blue-collar job), increased in part-time working, flexitime, annual hours, zero hours, home working and teleporting. Some of these work practices are positive and workers have more choice in their work and they can have better work-life balance. There are some problems with flexible working practices, such as employ resistance, employee lack of interest, technological constraints, financial constraints, lack of senior level support, operational pressures, line management attitudes, existing organizational culture etc.
Line manager reported a problem between different employees was demonstrating fairness when offering flexible working. There are three factors in its decision making. They are individual like their working skills, style and preferences. Next is nature of their role like time spent out of the office. Last one is needs of their teams. Another way of resolving issues is self-roistering; where employee agrees their own roster rather than having it imposed by manager. After implementing flexible working in the organization, it has numbers of impacts on both employees and employers. Some of the positive effects of flexible working practices are recruitment, productivity, customer service, knowledge- sharing, team working, absence, psychological contract and motivation.
Work life balance
According to the CMI, work life balance is the equilibrium between the amount of time and effort a person gives to work and that given to other aspects of life.As we know that, work life balance is very important in order to produce productivity and creating of their employee. If there more favourable working life in company we can much lower intent to leave the organization. Employers can be offered of different programmes and initiatives, such as flexible working arrangement part time, casual and telecommuting work.
In the business case, there are
Grievance, Discipline and Dismissal Process
Disciplinary and grievance:
Every company has to face difficult situation either the employer or employer's perspective. So the firm has establish disciplinary and grievance procedure. It provides clear and transparent frame work to deal with different problem that arise. It is necessary to ensure that everybody is treated in the same.
Following process to be followed:
Company needs to identify the obstacles and then provide traning, clarify the job requirement.
There should be point of contact and time scale in order to resolve the issues within the firm.
Company needs to resolves the problems without going to employment tribunal.
Appropriate sources of complaint to be supported.
Discipline issue result in dismissal:
Discipline is very important in any organization for smooth running. There are two main areas where firm in disciplinary system may be used. They are like performance and conduct.
Capability and performance may arise as result of an employee does not have enough training or unable to work to satisfactory standards which will result in dismissal. The others would like unacceptable levels of absence will result in dismissal.
Issues like lateness, failure to follow management instruction bullying behaviour or creating hostile work environment and other criminal and unethical offences would result in dismissal.
Following stage need to be followed for disciplinary actions.
Role of ACAS code and employment tribunals:
Employers need to be followed ACAS code and employment tribunals prior to any dismissal. These statutory procedures for handling issues grievances and discipline is very crucial which was introduced in October 2004 and was criticised in beginning later it was repealed entirely with effect from 6th April, 2009.
So it crucially important for the employers issues relating to grievances and discipline in the firm. The employers need to keep in mind these ACAS code coming to dismissal of employees. So employment tribunals consider whether the ACAS cod has been followed or not, if not then tribunal may adjust up to 25%. Therefore, these statutory bodies have played crucial role related issues grievance, discipline and dismissal process.
The role of human resources in any organization is very crucial in order to achieve organizational goal. The study of Tesco's HR policies has focused on level of training provided to all employees i.e. an effect in the bottom line which leads to more commitment among the employees. The study carried out on the different activities of a general HR department and that of Tesco's explain that Tesco has been highly successful in implementing the suitable plan and programme. So this helped Tesco's to increase their market share and retail units over the years which have been achieved partly through effective HR department although it is not sole factor in their path to success but it has certainly been a major factor of Tesco plc.