- Summary
The report considers the nature, success and new ideas of Human Resources Management in Tesco by:
- Describing a strategy and collecting general information (present status of the company). Presenting information regarding employees on the chart. International workers and their role in Tesco.
- Analysing distinctive features of human Resource management. Importance of teamwork, variety of courses, dealing with absenteeism, motivation.
- Discussing new challenges for Tesco and future development by changing contracts for employees and using web-based resources to monitor staff needs.
(c) Additional information – Appendix 1.
- Findings
(a) Human Resources Management Strategy in Tesco
and general information.
- Human Resources are one of the most important features of many businesses including Tesco.
Management of these resources is an integral part of Tesco success.
- Tesco employs approximately 250,000 people in United Kingdom.
As you can see on the chart above 17% of employees are international.
- International workers allow Tesco to deal with staff shortages in some area of England. The ideas of employing Eastern European workers started by employing 70 polish workers in 2004.
- Nature of HRM in Tesco.
Wherever Tesco operates, it wants to give every customer the very best. This simple philosophy has been a key to become the leading UK retailer.
TESCO is a company, which is dedicated to professional management of both people and property. They are committed to each other through mutual respect and support. They realize the importance of individual growth in order to strengthen the whole. They invest in the development of the individual through training, education and reward. They seek a balance between preservation of our resources and realization of profit. TESCO's strive to combine accuracy and reliability with accountability.
- Tesco is a knowledge – based organization.
- Tesco tends to recruit workers willing to progress and work as a team with excellent customer service.
- Teamwork is a very important aspect of Tesco Human resource Management. Management tends to recruit people with different characters and background because this kind of people can create a good team.
- Tesco offers a great variety of courses for employees. Human Resource Department believes that training process and coaching are beneficial for both parties – a worker and the company. Competitiveness in training and within Human Resources at Tesco Training and development are of greater importance than before. Employees using brain power and knowledge are very valuable to Tesco and add value to products. Tesco by giving training and development add value to their products and have a competitive advantage over their competitors. This is true for the economy as well as Tesco and its competitors. The government has placed a vital importance on education, training, and development particularly on ICT and communications technology. Tesco offer opportunities for jobs and the economy rests upon the flexible working practices employed within service and knowledge based industries. Tesco want to keep their employees and want them to be satisfied in their job, because students are hired as a main percentage Tesco don't want to lose them, when say the student may want to go to university they can find them a job wherever they are moving.
- Lesley James – Tesco Human Resources Director at 2003 says: “Good Motivation leads to good performance”. Tesco believes that well – motivated staff is the key to provide:
♦ High productivity level.
♦ High quality product and services.
♦ Increase of number of customers over the years
♦ Low staff turnover.
♦ Good industrial relations.
- Tesco is currently piloting non – payment of sick pay for the first 3 days at some stores in a bid of reducing absenteeism.
Daniel Naftalin (a partner at Law firm Mishcon de Reya) points out that there are potential problems with Tesco’s idea. Some people can come to work with genuine sickness and make a lot of mistakes (just to get paid) and on the other hand, some taking the day off for hangover, for instance, may spin their absence out beyond 3 days.
- Future development and new ideas.
It was forbidden by Tesco to give me particular information about the future plans. This is because; other competitors may be able to use such details to withstand a greater chance of attracting more customers in the same market.
- One of the new and recent Tesco’s ideas is web-based
Recruitment running by HRM Department. Moreover, HRM wants to use web-based recruitment to help with monitoring all staff needs in near future.
- Tesco is currently looking into changing details of the contract for new employees to reduce absenteeism as much as it can be reduced. Some Tesco stores have got a plan to reward their workers with food vouchers if they have not got any absence days for 12 weeks.
- Conclusion
- Tesco Human Resources Management has got a customer based strategy.
- Tesco manage people and property in a professional way.
- Bibliography
Web-resources:
Retail Human Resources, Company profile.
http://www.retailhumanresources.com/pages/content.asp?PageID=592
9/12/2006
Tesco
http://www.tesco.com/
9/12/2006
This is money. History of Tesco.
report/article.html?in_article_id=413262&in_page_id=108
9/10/2006
Human Resource Management
8/10/2006
5. APPENDICES
(c) Additional Information
In such a large organisation as Tesco Potential of conflict in Human Resources Management is inevitable. Human Resources may conflict with other functional areas, such as administration, marketing, finance, sales, Training and development, recruitment and Selection, and research. Marketing may demand more employees that have better qualifications and skills, they may need staff with specialist skills and expertise; therefore further training may be needed, or high wages that human resources may not be happy to pay.