Tesco is a UK based superstore chain. It is one of the largest British retailer, both by global sales and domestic market share, and the 4th largest retailer in the world after Wal-Mart of the USA, Carrefour of France, and The Home Depot of the USA. [1] It started its journey in 1919 when Jack Cohen started selling extra foodstuff from a stop in the East End of London. The Tesco brand first appeared 5 years afterward in 1924 when he bought a delivery of tea from a Mr T. E Stockwell. The initials and letters were collective to form Tes-co and in 1929 Mr Cohen opened the flagship Tesco store in Burnt Oak, North London. The brand continued its rise in the 1930s when Mr Cohen built a headquarters and warehouse in North London and in 1932 Tesco became a private limited company. In 1992, the company launched is slogan 'every little helps', followed by the Tesco Value range in 1993. . This was followed by the launch of the Tesco Clubcard scheme in 1995, helping Tesco to overtake rival Sainsbury's as the UK's largest food retailer. In 1997 Tesco appointed Sir Terry Leahy as chief executive. Tesco.com was launched in 2000 and the supermarket continued to expand its range of products, Tesco now operates in 13 countries. Tesco is the major private sector employer in the UK. The company has more than 360,000 employees worldwide. Our objective of study given below:
To discuss about Human resource (HR).
To discuss about work force planning and attracting recruitment.
To discuss about selection.
To discuss about Training and Development.
Employee motivation
To have Knowledge on Tesco Ltd. And retail industry.
A history of Tesco: The rise of Britain's biggest supermarket (By Tim Clark
Published: 8:11AM BST 15 Apr 2008)
[1](http://www.lonympics.co.uk/new/Tesco.htm)
(2)(http://www.telegraph.co.uk/finance/markets/2788089/A-history-of-Tesco-The-rise-of-Britains-biggest-supedrmarket.html)
Human Resource Management:
Human resource management is the process of acquiring, training, appraising and compensating employees and attending to their laborer relations, health and safety and fairness concerns (Dessler, 2005). The topics I will discuss should provide for the concepts and techniques of HRM. It helps an organization to get maximum output from their employees and it helps the organization to reach the top place of their industry. HR believes that "People are most valuable asset in an organization" (Gibbs, 2000). It is a formula where no member of any senior management team would disagree with. Yet, the truth for many organizations is that their people remain.
under prized
under trained
under utilized
badly motivated
In this globalizing world organization facing different kind of changes so that, organizations must absorb and manage change at a much quicker rate than in the past. For implementing a successful business strategy to face this challenge, organizations, large or small, must make sure that they have the correct people capable of delivering the strategy.
As organizations vary in size, aims, functions, complexity, construction, the physical nature of their product, and appeal as employers, so that in every kind of organization HR department plays a key role. But, in most the ultimate aim of the function is to: "ensure that at all times the business is correctly staffed by the right number of people with the skills relevant to the business needs".
3 HRM activities of Tesco
Tesco is the main private sector employer in the UK. It has more than 360,000 employees worldwide.
Tesco needs people across a extensive range of both store-based and non-store jobs:
• Checkout staff, stock handlers, supervisors as well as many specialists (in store)
• Skilled in stock management and logistics. (In distribution)
•Human resources, legal services, property management, marketing, and accounting and information technology. (In head office)
Workforce planning of Tesco
Workforce planning is the process of analyzing an organization's possible future needs for people in terms of numbers, skills and locations. This thing allows the institute to plan how those needs can be met through recruitment and training. It is very important for a company like Tesco to plan in advance. Because the company is rising quickly, Tesco wants to recruit on a regular basis for both the food and non-food parts of the business.
Positions become vacant because:
• When company opens new stores in the UK and expands internationally Jobs are created
• Vacancies appear as employees leave the company (retire or resign - or get promotion to other positions within Tesco)
•If company changes its processes and technology, new types of jobs can be created
Tesco's main task is to serve its customers. If we see the organizational structure of Tesco, their customers stay at the top level. Tesco needs people with the exact skills at every level of this structure. Tesco has six work levels within the organization. This provides an understandable structure for managing and controlling the whole Organization. Every level of this structure requires particular skills and behaviors.
Skills and behavior:
• Work level 1 - frontier jobs working directly with customers. For example: Different store tasks, such as filling shelves with stock. This job position requires the ability to work correctly and with enthusiasm and to interact well with others.
• Work level 2 -Controlling a team of employees who deal directly with customers. It requires the ability to motivate others, to place targets, and manage resources.
• Work level 3 - Running an operating unit. This job position requires management skills, including planning, target setting and reporting.
• Work level 4 - Supporting operating units and recommending strategic transform. It requires good understanding of the business, the skills to analyze information and to make vital decisions, and the capability to lead others.
• Work level 5 - Responsible for the entire performance of Tesco. Requires the capability to lead and direct others, and to make key decisions.
• Work level 6 - Making the purpose, standards and goals for Tesco plc. This position is also responsible for Tesco's performance. Requires a good knowledge of retailing, and the capability to build a vision for the future and guide the whole organization.
Workforce planning is vital if a business is to meet its future demands for staff. It allows a business time to train existing staff to take on new responsibilities and to recruit new staff to fill vacancies or to meet skill shortages. Tesco is a major international company with many job opportunities, including management, graduate, school leaver and apprentice posts.
Attracting recruitment
Recruitment process preferably begins with the analysis of job description and person specification for that job. A job description and analysis of person specification give the foundation for stipulating the job title and salary scale of the position. Job specification means the education, training, experience, and competencies required by the job holder, in a word qualities of job holder. The person specification is vital, because the key part of the person specification, established at the beginning, is used in structured selection interview.
Recruitment is all about attracting the right standard of applicants to apply for vacancies. Tesco advertises jobs in diverse ways. The method varies depending on the job available. Tesco first finds at its internal Talent Plan to fill up a vacancy. This is a process that lists existing employees looking for a move, either at the same level or on promotion (vertical or horizontal). If there is no suitable person in this Talent Plan, Tesco advertises the position internally on its intranet for 2 weeks. In terms of external recruitment, Tesco advertises vacancies:
Through Tesco website www.tesco-careers.com
Offline media
through vacancy boards in stores
through television and radio
By placing advertisements on Google or in magazines such as The Appointment Journal.
Tesco will look for the most cost-effective way of attracting the right applicant. The chosen applicants have an interview followed by attendance at an assessment centre for the concluding stage of the selection process. People interested in store-based jobs with Tesco can approach stores with their CV or register though Jobcentre Plus. The store makes a waiting list of people applying in this way and invites them in as jobs become available.
Selection
Selection process involves choosing the most appropriate person from those that apply for a vacancy, whilst keeping to employment laws and policy. Screening applicants is a very important part of this process. This ensures that those selected for interview have the best fit with the job details. In the beginning stages of screening, Tesco selectors will look cautiously at every applicant's curriculum vitae (CV). The CV summarizes the candidate's education and job history and skills to date.
The process Tesco uses to select external management candidates has several stages.
An applicant who passes screening attends an appraisal centre. The appraisal centers take place in store and are manage and run by managers. They help to give regularity in the selection process. Applicants are given a range of exercises, including team-working tasks or problem solving exercises.
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Justification of how the objectives of these were achieved by effective management of human resources
As a big company Tesco is having nice work force planning and it really helps to achieve its organizational goal. Different work level is having different work responsibility and it is clearly defined by them. According to their needs they recruit people. Before giving advertisement Tesco seeks to fill many vacancies from within the organization. It recognizes the importance of motivating its staff to develop 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 a yearly assessment scheme, employees can apply for 'bigger' positions. Employees recognize roles in which they would like to build up their careers with Tesco. Their manager sets out the technical skills, competencies and behaviors essential for these roles, what training this will needed and how long it will take the person to be equipped to do the job. This helps Tesco to accomplish its business objectives and in the point view of employees, it helps to achieve their personal and career objectives. Moreover this process helps to minimize the recruitment cost because if Tesco collect people from internal resource, they don't need to go for advertisement for their recruitment. On the other hand, a significant element in workforce planning is to have understandable job descriptions and job specifications. A job description sets out:
• The designation of the job
• To whom the job holder is responsible
• For what reason the job holder is responsible
• A trouble-free description of roles and responsibilities.
A job specification sets out the skills, characteristics and attributes that a person needs to do a particular job. Together, job descriptions and job specifications provide the foundation for job advertisements. They help job applicants and post-holders to know what is anticipated of them. As they are sent to anyone applying for jobs, they should:
• Contain sufficient 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.
At Tesco these documents are combined:
Job descriptions and job specifications show how a job-holder fits into the Tesco business. They help Tesco to recruit the right people.
HR Model:
Human Resource Management - Two Models
I am just showing 2 HR models with their difference. It will help Tesco to choose better one because difference of two models is illustrated. Models are:
Control-Based HRM
Commitment-based HRM
Difference between Control and Commitment based model:
Policy Area
Control-Based HRM
Commitment-based HRM
Job design principles
sub-division of work; detailed job responsibility - with accountability ; planning separate from implementation
broader jobs; shared planning and implementation; teams
Management Organization
top-down control and coordination; hierarchy; status symbols
flat structure; shared goals for coordination and control; status minimized
Compensation
fair day's pay for a fair day's work; job evaluation and appraisal; individual incentives
reinforcing group achievements; pay geared to skill and other contribution criteria; profit sharing
Employee Voice
Unionised (damage control, bargaining); Non unionised (attitude surveys)
mutual mechanisms for communications and participation; mechanisms for giving employee voice on issues
Labour Management Relations
Adversarial
mutuality; joint problem-solving and planning
Management Philosophy
the boss dictates; management obligated to stakeholders
fulfilment of employee's needs is a goal rather than an end
Source: after Lundy O (1994) From Personnel Management to Strategic Human Resource Development, International Journal of Human Resource Management Vol 5 pp 687-720
Both the model of HR is very effective. It is really hard to tell which model or approach will good for Tesco but commitment based model will be the best choice for Tesco. Because in commitment based model we can see more mechanisms for giving employee voice on issues. Moreover commitment based model is concern about profit sharing which can be good motivating factor for the employees. Finally it is like flat organizational structure and status minimization is there so employee will be more connected with top level management.
B. Human Resource Planning:
Human Resource planning is the process of getting the correct number of proficient and capable people into the tight job at the right time. The excellence of the candidate and his/her capability are deciding factor how Tesco will succeed in achieving its visions, objectives and tasks.
Human Resource planning in Tesco must be a part of the Company's overall plan. When drawing up Human resource plans, it is significant to take the following factors into deliberation:
Possibilities for better efficiency through reformation and the use of tools/facilities, and making adjustments during expansion and contraction.
Possible /expected workload and expertise requirements and to ensure the most favorable and effective utilization of the Human resources for the whole Company, both for current and future requirements.
Employee turnover/employee mobility
Probable transfer, promotion, periods of leave etc and plan and apply plans to help achieve manpower objective.
Tesco's Human Resource planning should start at the beginning of the year so that HR cans co-ordinate Human Resource planning process at the right time. Another thing is Tesco need to make their budget for HR department.
Training and development:
Tesco provide training for 2 types of employees. They provide training to their current employees and also to their new employees. Training is the organized progress of the attitude, knowledge, skill pattern required by a person to carry out a given task or job adequately and development is 'the growth of the individual in terms of capability, understanding and awareness'.
Why Tesco arrange training program for their employees:
Develop workers to undertake higher-grade tasks
To run new technology
Provide the conventional training of new and young workers
Raise efficiency and standards of performance
Meet legislative requirements (e.g. health and safety)
Different kind or trainings are provided by Tesco to their employees. For the new employee they arrange orientation program. Agenda of this orientation program given below:
Give brief information about Tesco
Working environment and culture of Tesco
Brief discussion of routine work
Identifying new employees need
After orientation program according to new employees work level they arrange training program for their employee. For example a person appointed as a cashier in he or she will get how to handle cash, how to serve customer etc. That means first new employee get training about his or her job and they learn those things in the store with the help of supervisor or store manager. It is like on the job training. After that new employee get training about health and safety issues.
For the existing employee, in terms of training they first identify the needs. What is the need of that particular employee? According to employee need Tesco arrange training program for their employees. In this case on job training is most popular in Tesco.
Apprenticeships in Retail:
Tesco is arranging retail apprenticeship which is a chance for Tesco staff to gain a nationally recognized qualification awarded by City & Guilds.The programme starts every September in selected stores and lasts 12 months. The apprenticeship is made up of three parts:
Key Skills are standard qualifications that help develop essential skills for success in education, employment and everyday life. Tesco's apprenticeship includes Key Skills Level 1 training which is without Maths and English GCSEs.
Tesco managers deliver on-the-job training for the NVQ (National Vocational Qualification) in Retail Level 2, which consolidates the realistic skills and knowledge of retail. The Technical Certificate in Retail Level 2 is a multiple-choice examination that you'll take under exam conditions. It tests the theoretical understanding of the retail business that you will have gained in the NVQ course.
http://www.tesco-careers.com/home/you/stores/rewards-and-benefits/team
.
http://www.accel-team.com/human_resources/hrm_07.html
Employee Motivation:
To retain good staff and to encourage them to give of their best while at work requires attention to the financial and psychological and even physiological rewards offered by the organization as a continuous exercise. So employee motivation is very important for the organization. Though employee motivation can be given both financial and non-financial ways but most of the cases Tesco motivate their employees through financially.
At Tesco, they like to ensure their staffs are cared for financially. Where a worker is working for Tesco 3 months or 3 years they run three successful share schemes, all helping employees end up with more cash in their pocket.
Tesco give free shares to everyone who's worked here for one year at the end of the financial year (February). Tesco share a proportion of their profit amongst their staff, based on salaries. These Tesco shares are held in trust for 5 years, and after that employee can take them and it is tax-free.
Every October those people who've been here a year get the choice to save up to £50 every 4 weeks for either 3 or 5 years and receive a tax-free bonus at the closing stages. Employee can use their savings and bonus to buy Tesco shares at up to 20% less than the market price, or take the cash.
After three months working with Tesco, every employee have the chance to join the BAYE (buy as you earn) scheme. Employee buys shares at the market price every 4 weeks, saving tax and National Insurance on the salary. Tesco employee can start, stop or change the amount they invest at any time. And if they keep the shares in trust for 5 years you'll get even more tax advantages.
Not only those facilities but also Tesco employee get free voucher, 10% discount in buy from Tesco etc. Mainly Tesco is motivating their employees financially and also making them part of the company by providing Tesco share through share.
http://www.tesco-careers.com/home/you/stores/rewards-and-benefits/team
http://www.accel-team.com/human_resources/hrm_03.html
