Hrm at Tesco

Topics: Management, Human resource management, Human resources Pages: 14 (4853 words) Published: April 14, 2013


The functionality of an organisation is primarily based on many competencies which determine how well an organisation performs. Human Resource Management is one aspect within Project management that plays a significant role. Tesco PLC has become one of the leading retailers in the UK, as well as worldwide over the years. Founded by Jack Cohen in 1919, he began selling groceries from a stall. From making a profit of £1 selling, Tesco now has become the third largest retailer worldwide (Tesco PLC), Tesco’s annual report shows a total of 72.1billion which they have acquired through diversified products and services they offer to their customers. Tesco now employs over 46, 900 employees worldwide with over half of that percentage UK employees. They also have a significant presence within the international market. Report will focus on how Tesco PLC has managed to implement HR within their organisation and also how they are currently using HR to maintain their position as one of the top retailers in the UK. BACKGROUND

HR is a unique capability that creates high value and differentiates an organisation from its competition’ (Sharma, 2009). Human Resource management involves undertaking a variety of activities, this includes, analysing company’s competitive environment and designing jobs so a firm’s strategy can be successfully carried out in order to beat its competition. The process of Human Resource Management entails Identifying, Recruiting and selecting the right people. Moreover attributes in which HRM uses to ‘develop competitive compensation’ are Training, Motivating, Appraising. All these components are used to motivate employee. Human Resource is very important, even with a great business strategy, business plan, products and services; HR still needs to be a core competent within an organisation. TESCO PLC STRATEGY

In any given profession field, there’s always going to be competition involved. In business ‘teams of individuals face each other in competition for employees, customers, product innovations and profits’. (2010). In order for a business a competition to excel above their competitors they must master the skills of preparation, planning and execution. In addition to this in order for any business/ organisation to succeed they must be able to meet customer demands, meaning ‘providing a product or service which meets a customer’s unmet needs (Harper,2005). The word strategy just means deriving a plan in order to achieve something. in business terms strategy is ‘developing a broad formula for how a business is going to compete, what its goals should be, and what policies will be needed to carry out those goals (Porter, 1998). A viable strategy is what differentiates an organisation that incurs more profit to one that sustains less. Tesco PLC has established strong ethical strategies over the years, making customers their priority. Initially they started off with having found a niche in the retail market; however they now have a diversified range of products and services that they offer, they have now expanded more into the domestic market which consists of non-food, electronics as well as offering financial services. Tesco base their concepts on McKinseys 7-S framework which emphasises the need for’ the alignment of seven organisational variables (Superordinate goals, strategy, structure, systems, staff, skills and type; (Sutherland, 1991). Superordinate Goals

In terms of Tesco’s HR department, it is important that goals are set within the organisation. ‘Superordinate management gaols ‘help to motivate individuals across different departments and are used to solve conflicts and establish relationships within the company’’ (Omika,2007). Tesco believes that motivation comes from staff interest such as ‘getting praise and rewards’. This links to Frank Herzberg’s motivation and hygiene theory. He...
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