HR Aspects in TESCO Pvt. Ltd.
-
Upload
ali-raza-sahni -
Category
Documents
-
view
973 -
download
1
Transcript of HR Aspects in TESCO Pvt. Ltd.
An Approach by Ali Raza Sahni 1
TESCO Public Limited Company
Analytical Approach for Human Resource Strategy
Type: Public limited company
Traded As: LSE: TSCO
Industry: Retailing Stores Network
Founded In: 1919 (In East London)
Founder: Jack Cohen
Headquarters: Cheshunt, Broxbourne, Hertfordshire, United Kingdom
Locations: 5,380 Stores
Key People: David Reid (Chairman)
Philip Clarke (Chief Executive)
Products: Groceries, Consumer Goods, Financial Services, Telecoms
Revenue: More than £ 60.93 Billion
Op. Income: More than £ 3.81 Billion
Net Income: More than £ 2.67 Billion
Employees: 472,000+
The third largest retailer of the world is not other than the TESCO PLC, the first one is Wal –
Mart and second one is Carrefour on the basis of net revenues. According to profitability point of
view TESCO is the second largest retailer of the world. The total numbers of stores are 5,381 in
all over the world but 2,666 stores are present in the Great Britain. TESCO have 30% market
share in UK retailing network as leader of the market. Cheshunt is the head office of the TESCO
which deals to all the world franchises. More than 14 countries like, US, Ireland, Malaysia,
Europe, China, Turkey, Poland have various stores of TESCO.
An Approach by Ali Raza Sahni 2
Human Resource Management (HRM)
Human Resource Management (HRM) consists of activities involved in the recruiting, hiring,
training, development and compensation of all types of the personnel (Ulrich, 1998). It supports
both individual primary and support activities (e.g. hiring of engineers and scientists) and the
entire workforce.
This report describes the Human Resource (HR) Policies and various practices of TESCO. This
organization has introduced commitment model for all employees to their training and
development sessions. This world class model has developed the cultural values of the TESCO
plc through extending their logo which is the evidence of the commitment of organization
towards the customers.
HR Operations of TESCO
We know that, TESCO’s founders wrote the value statement before to write the business plan; it
is very interesting regarding business point of view. That is why they always focus of people and
their need then they focus on the product and their specifications (Annual Report, 2010). In
terms of broad analysis, following are operational goals of the TESCO as:
To raise the value of the firm
To increase the market share
Establish extra – ordinary environment in the firm
TESCO HR Strategy
Human Resource (HR) Strategy is relatively concerns with the employment and development of
the people in the company in log run time period. These HR decisions also effect to the
relationships between management and its staff. HR strategy expresses the view of the human
resources and their management which are present in the organization. These strategies provide
helps to the management in plans developments and other decision making procedures. The
business strategy is supported by the HR strategy.
An Approach by Ali Raza Sahni 3
According to the Michael Porter (1998), the competitive advantage is based on the deployment
of resources on the basis of skills and motivations of the employees in the organization. The HR
strategy should be proactive by nature which explains the behavior of maximize value addition
achieved by the human resources. And the decisions implementation should be reactive by nature
which means business strategy assessment may be under the some strict directions.
The highlights of TESCO are very close to performance management because TESCO always
ready to face challenging goals by their unwritten rules and work simplification. All the
employees from head office to branch level are strongly committed to rolling out their core skills
to achieve the steering – wheel targets (Anonymous, 2003).
The performance management systems are an integral part of most of the organizations. Properly
developed and implemented performance management processes can help an organization to
achieve its goals by developing productive employees. There are two factors which explain the
behavior of the term performance management as:
The performance appraised must be conducted according to some established intervals
The appraisers must be trained in the process
It is ensured by the TESCO that everybody have equal opportunities in the organization to
understand the core values and objectives of the business. There are many innovation inductive
programs are also conducted by TESCO to specify the different cultural styles of learning and
varying commitment phenomena towards the organization. The firm belief of the TESCO is that
all the employees are very essentials to turning the core values and customer commitment. But
the frontline employees of TESCO are the ultimate reflection towards the customers (Whitlock,
2003).
HR – Led – Business Strategy
According to Michael Porter (1998), the business strategy is depending on the HR Strategy. So,
we know the TESCO have HR strategy according to the performance management in the
organization and also on the basis of culture in the superstores. The, HR – Led – Business
Strategy is the other name for the development of human resources on least economic level with
all possible developments in the organization.
An Approach by Ali Raza Sahni 4
According to the HR – Led – Business Strategy, the excessive amount of customer services
counters should be present on the superstores to under the customer’s view regarding the
organization. These kind os customer service programs will also be helpful in calculating the
supply and demand of the customer’s needs and their trends. This strategy will be very helpful
for TESCO’s superstores in the extensive competitive environment of the UK Retailing Market
(Anonymous, 2003).
The major challenge for TESCO is the job descriptions to their employees. It should be ensure to
all the employees that when they are during the work hours they should be aware from their role
and skills regarding their job specification. For this purpose, training is most important to
understand the core values, purpose, business goals, financial aims, operations and all other
strategies to obtain the customers commitment towards the TESCO. The training sessions should
be more than before (Whitelock, 2003).
A group of 17 key management techniques should be used to improve the core skills and values
in the more than 260,000 employees. All of these techniques will indicates the betterment in the
root causes analysis, problem solving statements, reviews to plans and performance standards.
This group will give us guarantee that all the employees have well – defined cleared roles,
responsibilities and activities for their jobs. All the employees will be responsible, accountable,
consulted and well – informed by this system (Anonymous, 2003).
The financial results of TESCO are so good for top management but the HR results may not be.
For this approach, the senior directors should be incharge with this management group who
implement the HR strategy. The board meetings on monthly basis also review all the results of
the policy implantation. Now, TESCO tracks more human resource information as closely to
financial results (Anonymous, 2003).
If TESCO want to improve the skills of their workforce for the betterment of organization then
Human Resource – Led – Business Strategy is so essential. The developing organizational
flexibility firms aims should be truly integrated part of the culture as one step ahead to its rivals
(Anonymous, 2003).
An Approach by Ali Raza Sahni 5
Vision Statement
“Our vision is for Tesco to be most highly valued by the customers we serve, the
communities in which we operate, our loyal and committed staff and our shareholders; to be a
growth company; a modern and innovative company and winning locally, applying our skills
globally”
Long – Term Business Objectives
TESCO is one of the leading corporations in UK in retailing network. The objectives of the
TESCO are visible in their strategies. TESCO is committed to following objectives as:
To offer best value product at competitive prices
To understand and meet the customer’s needs according to the market trend
To enhance the store facilities and other services for the attraction of more customers
To provide maximum return to their shareholders by improving profitability
To adopt new technology and productive improvements to generate more profits
To develop the skills in the employees by sound management techniques and training
sessions
To provide equal opportunities to employees in the organization
To build long term relationships with suppliers on quality and price criteria’s
To understand and participations in the national food policies maing bodies regarding the
matters of nutrition, health, safety, etc.
To work for community and protect the environment
To maximize their efforts for the CSR (Corporate Social Responsibility)
Performance Review & Development Strategy
Performance Review System involves numerous activities, for more than simply reviewing what
an employee has done. These systems must fulfill several proposes. Moreover, they are often
constrained by difficulties in how they operate. The aim to evaluate the employee performance
that how employees had done over a period of time and to let them know what pay raise they
would receive (DeCenzo, 2004).
An Approach by Ali Raza Sahni 6
This training revolves around managing performance. A typical aspect is the various aspects of
participation in a formal performance review system, which may have a variety of names: staff
development scheme, career development scheme, performance appraisal system, performance
management, etc. This type of training is fully explained at: performance management training.
However, the broader issue of performance, particularly dealing with poor performance or
performance problems, can also be an issue for team leaders, co-coordinators and managers.
Managing human performance is a key leadership and management task. Sometimes, employees
and staff are not performing at the optimum levels. There can be a wide range of reasons for this.
It takes specific skills to identify the problem areas and work with staff to overcome the issue in
order to reach acceptable performance standards. Each program relates to the needs of the group.
A heavy emphasis is placed on activities and exercises designed to develop and refine skills.
Performance Appraisal
A performance appraisal, employee appraisal, performance review, or (career) development
discussion is a method by which the job performance of an employee is evaluated (generally in
terms of quality, quantity, cost, and time) typically by the corresponding manager or supervisor.
(Patterson, 1987). A performance appraisal is a part of guiding and managing career
development. It is the process of obtaining, analyzing, and recording information about the
relative worth of an employee to the organization. Performance appraisal is an analysis of an
employee's recent successes and failures, personal strengths and weaknesses, and suitability for
promotion or further training (Murphy, 2007).
The Performance Appraisals must convey to employees how well they have performed on
established goals. It’s also desirable to have these goals and performance measures mutually set
between the employee and the supervisor. Without proper two – way feedback about an
employees’ effort and its effect on performance, we run the risk of decreasing his or her
motivation. However, equally important to feedback is the issue of development (Levinson,
2003).
The Appraisal Performance Process begins with the establishment of performance standards in
accordance with the organization’s strategic goals. These should involve out of the company’s
direction – and, more specifically, the job analysis and the job description. These performance
An Approach by Ali Raza Sahni 7
standards should be clear and objective enough to be the understood and measured (DeCenzo,
2004). Following steps are involved in this process as:
Establishment of Performance Standards
Communication towards the Employees
Measurement of Performance by allocated method
Comparison of Actual with Appraisal Performance
Discussion the Appraisal with the Employee
Corrective Actions where Necessary
Performance Management Systems involve numerous activities, far more than simply reviewing
what an employee has done. These systems must fulfill the several purposes. Moreover, they are
often constrained by difficulties in how they operate.
Approximately three decades ago, performance evaluations were designed primarily to tell
employees how they had done over a period of time and to let them know what pay raise them
would receive. This “Feedback” mechanism may have served its purpose then, but today
additional factors must be addressed. Specifically, performance evaluations should also address
development and documentation concerns (Norlin, 2004).
Most individuals recognize that the importance of effective performance management system in
an organization is most necessary. Not only is it necessary for the feedback systems to
employees but also for the identification of personal development plans, they serve an important
legal purpose. Furthermore, organizations that fail to accurately manage employee performance
often find out themselves facing difficult times in meeting their organizational goals.
The job – oriented measures must be performance – supported when an HRM decision affects
the current employees. HRM must ensure that the evaluation systems used support the legal
needs of the organization. However, even through the performance appraisal process is geared to
serve the organization, we should also recognize two other important players in the process
employees and their appraisers. Thoroughly timely and accurate feedback and development we
can better serve employees’ needs. In doing so, we may also be in a better position to show the
effort – performance linkage.
An Approach by Ali Raza Sahni 8
When the peaks seasons starts like Christmas, then many organization changes their traditional
management portfolios into the advanced portfolios just to provide maximize facilities to the
customers. TESCO has implemented Expe – Tune performance management software from
Macro 4 to manage its mainframe servers ahead of the Christmas sales peak.
HR Requirements for TESCO
The resource – based review (RBV) of the firm combines two perspectives as: (1) the internal
analysis of phenomena within a company and (2) an external analysis of the industry and its
competitive environment (Collis, 1995). The human resources are intangible by nature and
includes following parameters as:
Experience & Capabilities of Employees
Trust & Confidence on Employees
Managerial Skills
Firm – Specific Practices & Procedures
Technical & Scientific Skills
These parameters are also represents the organizational capabilities which are not specified as
tangible or intangible assets or resources of the organization.
Firm competencies or skills the firm employees to transfer inputs into the outputs
Capacity to combine tangible and intangible resources, using organizational processes to
attain desired outcomes
Outstanding customer service
Excellent product development capabilities
Innovativeness of products and services
Ability to hire, motivate, and retain the human capital
Tesco needs people across a wide range of both store-based and non-store jobs:
• In stores, it needs checkout staff, stock handlers, supervisors as well as many specialists,
such as pharmacists and bakers.
An Approach by Ali Raza Sahni 9
• Its distribution depots require people skilled in stock management and logistics.
• Head office provides the infrastructure to run Tesco efficiently. Roles here include
human resources, legal services, property management, marketing, and accounting and
information technology.
Tesco aims to ensure all roles work together to drive its business objectives. It needs to ensure it
has the right number of people in the right jobs at the right time. To do this, it has a structured
process for recruitment and selection to attract applicants for both managerial and operational
roles.
Workforce Planning
Workforce planning is the process of analyzing an organization’s likely future needs for people
in terms of numbers, skills and locations. It allows the organization to plan how those needs can
be met through recruitment and training. It is vital for a company like Tesco to plan ahead.
Because the company is growing, Tesco needs to recruit on a regular basis for both the food and
non-food parts of the business.
Positions become available because:
• Jobs are created as the company opens new stores in the UK and expands internationally
• Vacancies arise as employees leave the company – when they retire or resign – or get
promotion to other positions within Tesco
• New types of jobs can be created as the company changes its processes and technology
Tesco seeks to fill many vacancies from within the company. It recognises the importance of
motivating its staff to progress their careers with the company. Tesco practices what it calls
‘talent planning’. This encourages people to work their way through and up the organization.
Through an annual appraisal scheme, individuals can apply for ‘bigger’ jobs. Employees
identify roles in which they would like to develop their careers with Tesco. Their manager sets
out the technical skills, competencies and behaviors necessary for these roles, what training this
will require and how long it will take the person to be ready to do the job. This helps Tesco to
achieve its business objectives and employees to achieve their personal and career objectives.
An Approach by Ali Raza Sahni 10
Cleared Job – Descriptions
An important element is clear job descriptions and person specifications. A job description sets
out:
• The title of the job
• To whom the job holder is responsible
• For whom the job holder is responsible
• A simple description of roles and responsibilities
A person specification sets out the skills, characteristics and attributes that a person needs to do a
particular job. Together, job descriptions and person specifications provide the basis for job
advertisements. They help job applicants and post-holders to know what is expected of them. As
they are sent to anyone applying for jobs, they should:
• Contain enough information to attract suitable people
• Act as a checking device to make sure that applicants with the right skills are chosen for
interview
• Set the targets and standards for job performance
Employee Development
In an environment where talent is scarce and external opportunities are plentiful, TESCO
believes that employees will stay with the firm only as long as they feel that their contributions
are valued, and they are able to do meaningful work in a stimulating and challenging
environment. While managers are to some extent held responsible for the development of their
subordinates at TESCO, there is some concern that due to the speed of the firm's recent growth,
this process is not occurring as quickly as it needs to, especially around the development of
competencies for the firm's many types of teams.
An Approach by Ali Raza Sahni 11
Recommendations
If the TESCO want to sustain their leadership in Britain Market than its must understand
that “Moving forward and becoming first class”, it should be clear to TESCO’s
management that globalization and comprehensive integration is most important in today
market.
TESCO should re – valued their moral, ethical and cultural beliefs according to new
patterns of business because “Good manners are essential for maintaining an
organization on a high moral ground”. (Dwivedi, 1998).
For the future prospectus, TESCO should follow their morality standards, good manners
and equitable ethics for the employees as well as for customer’s satisfaction.
The more innovation and dynamic nature in the organization booster the growth of the
organization in today business. For the faster performance and smatter’s results new ways
to do business should be adopted by TESCO.
To least the consolidated and integrated resource costs to achieve more profits.
Organization must provide maximum value at reasonable prices with adaptable resources
to sustain the leadership in very short – run time period.
The high – quality information system should be introduced in the entire organization for
the achievement of mandate in time in efficient manner.
To enhance the organizational competitiveness the systematic and long – term views
must be taken by management for human capitalization.
The Hr policies and plans and also their implementation should be establish for the long –
term time period as like other policies and developmental plans.
Conclusion
The TESCO business management philosophy is “devote human resources and technology to
create superior products and services, thereby contributing to a better global society" (Kun-He
Lee, 2006) for the direct contribution in the prosperity of the world with strong determination.
The key elements for TESCO are skills, experience, talent, innovations, developmental training
sessions, creative approaches, and dedication to employee’s as well as customers which gives
endless possibilities to TESCO to achieve the higher standards of living everywhere.
An Approach by Ali Raza Sahni 12
References
"Preliminary Results 2011". 19 April 2011. Retrieved 19 April 2011.
"2010 Annual Report & Financial Statements". Tesco. Retrieved 20 January 2011.
"Tesco.com Terms & Conditions." Tesco. Retrieved on 20 June 2010. "The Tesco.com
Site is owned and operated by Tesco Stores Limited a company registered in England and
Wales whose registered office is at Tesco House, Cheshunt, Waltham Cross, and
Hertfordshire"
Potter, Mark (16 February 2011). "Tesco to outpace growth at global rivals – study".
Reuters. Retrieved 25 February 2011.
"Global Powers of Retailing 2010". Deloitte. Retrieved 18 August 2010.
"International". Tesco plc. Retrieved 1 September 2010.
"Interactive map". Tesco plc. Retrieved 1 September 2010.
Finch, Julia (2 February 2010). "Tesco opens its first zero carbon store". The Guardian
(UK). Retrieved 1 September 2010.
"Our history". Tesco plc. Retrieved 10 November 2006.
"Tesco DVD Rental". Tesco. Retrieved 27 July 2006.
Armstrong, Michael (2006). A Handbook of Human Resource Management Practice
(10th Ed.). London: Kogan Page.
Armstrong, M (2005) (9th Edition) A Handbook of Human Resource Management
Practice Kogan Page, London
Anonymous (2003) Human resources deliver Tesco’s bright Future Human Resource
Management International Digest, Bradford
Armstrong, M; (2006), A Hand Book of Human Resource Management Practice, Tenth
edition, KOGAN PAGE, London and Philadelphia.
Beer, M et al (1984) Managing Human Assets, Free Press, and Wood S and Albanese M
(1995) Journal of Management Studies, March
Kun-Hee Lee. (2006) Samsung Philosophy. Samsung Group Press. p1.
Kun Hee Lee, et al. (1993) Frankfurt Declaration (paper presented to a conference held in
Frankfurt, 1993). Frankfurt Germany.
Kotler, P. (1972), “A generic concept of marketing'', Journal of Marketing.
An Approach by Ali Raza Sahni 13
Porter, M.E. (1985), Competitive Advantage: Creating and Sustaining Superior
Performance, the Free Press, and New York, NY.
Ulrich D., 1998. A new mandate for human resources. Harvard Business Review, 96(1):
124 – 34.
Collis, D. J. & Montgomery, C. A. 1995. Competing on resources: Strategy in the 1990’s.
Harvard Business Review, 73(4): 119 – 28.