Private box is when a business can rent a box at a local post office. Each box has a number on it that is part of the firms address. The post is kept there until it is collected by the businesses representative. The representative can arrange a time to pick up the post. Filing is the most common way to store paper. It can be stored in different orders, Alphabetical, chronological and geographical.
- Alphabetical – is in order of the alphabet.
- Chronological – is in order of date and time.
- Geographical – is when the papers are stored in order of where they came from, this may be in order of county, town or country.
Logbooks are also used in businesses. Logbooks are like diaries. The most common type of log book is probably the post book, this is where Tesco will keep record of the post and the parcels that come in and leave the business. Logbooks are also used to keep record of the visitors to the business. Logbooks are a way of recording actions so information can be tracked down when it is needed.
Administration and IT support also deal with organising meetings, meeting sizes can vary from 2 to a whole company of hundreds. They have to make sure that all the people that need to be there are all there. A disadvantage of meetings is that they can take staff away from other jobs. Most meeting have a chair or chairperson, this person’s job is to make sure the meeting goes smoothly and that everyone gets a chance to contribute to the meeting and the sectary will keep record of the meetings decisions.
Operations
In some organizations e.g. Tesco, the work of the operations section will overlap with those of the administration section. Operations are about the firm making the best use of the resources it has available:
- Buildings and land – offices, shops and farmland
- Equipment – vehicles, computers and machinery
- People – operators, managers, support staff and specialists
- Materials – products for retailing or raw material
Most businesses will use CAD CAM to design their products, but Tesco doesn’t produce the products that are sold in the stores. They buy the products already made and packed.
The operations department also make sure that the quality of the products is all good quality. The operations department at Tesco will employ people with a large variety of specialists. If any part of Tesco’s operations department stopped it will have a knock on effect on all the other departments. This is because if they didn’t make full use of what they have Tesco will have to purchase more products including land. This will reduce the amount of income for Tesco. The operations department for Tesco could use farmland to produce products.
Marketing
The marketing department make sure that the managers understand what the customers want from the business. They can do this by market research, promotion and sales. Before a company can offer a new product they have to make sure that they know what the customers want and make sure that they know what the competitors are offering. They can get this information from carrying out customer questionnaires this is called market research. It will use this information to offer promotion and sales activity designed to reach the people it is aiming to reach.
If Tesco wanted to introduce a new product to the shelves they would need to ask the customers what they think first this is because they need to know if anyone’s going to buy the product and they know what to plan next. They will also need to know what similar products are Tesco’s competitors (Asda, Sainsbury) are offering this will help them gain more profit. By researching the market Tesco will try to reduce the risk of unprofitable investments in a product. This will help Tesco because they will be able to sell more products and make a higher profit.
Before fully introducing a product the company will test market the product. This is when they offer the product to only one region of the country and keep record of the sales figures. If the product is successful then they will introduce the product to all the outlets.
If Tesco want to introduce a new product to their stores after all the market research they can use different sales techniques which include:
- Free samples – this is when Tesco would give away small packages of the product either on the street, in the shops or house to house. The aim is, once the customer has tried the product they will want to buy more of the same product.
- Free gifts – free gifts are offered to people with club cards.
Sales
The sales department at Tesco will make sure that their opening house suit, stores are well presented and products well displayed, arrange in store demonstrates to show how products can be used. The number of sales any business makes will depend on how easy it is for the customer to buy. This department will make sure that Tesco accept a wide range of payment methods, happy helpful staff that help customers. The sales department will also encourage and promote internet base shopping and over the phone ordering to help suit customers who can not get to the stores.
Furthermore the sales department will use computers to organise and track orders – stress free shopping – happy customers. Tesco’s sales department will make sure that stores and internet based shopping sites are convenient to use. Tesco sales department will consider how to price their products competitively so that people continue to shop. Price checks with other supermarkets, adverts etc.
Customer service
Tesco must have an exceptional customer service facility. Service to customers can be the deciding factor when a customer is choosing between rival firms such as Tesco & Asda. Successful businesses such as Tesco are required to provide a range of services for their customers. Things which Tesco can accomplish, to provide a good customers service are:
- Information – Customers will ask for information before they make a purchase so they can judge rival merchandise. The cost of an item is a significant piece of information. Questions about the performance of the item are also sometimes asked, e.g. ‘Are those shoes waterproof?’
- Advice – When buying something for the foremost time customers will ask for guidance form sales staff, who they expect to know something about the item for sale and the alternative available.
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Delivery - A delivery service is another example of what a firm can do to make it easier for a customer to make a purchase. Businesses buying large qualities form other businesses find transport costs are expensive and will also be attracted to suppliers who are able to offer a free or low-cost delivery service.
- After-sales service – Tesco have to make sure, how well a customer is treated after they have bought an item is almost as important as how well they are treated before they make a purchase. Expensive or complicated items are more likely to be offered with an after-sales service.
They will be located at the front of the stores so the customers can clearly see them so they can go to them if they need any information or have a problem. Being located at the front, so they will be the first people the customers meet shows how important they are to Tesco. This department is also in charge of handing out leaflets to the customers, for general information or informing them of the special offers going. For example over Christmas when it is busy there are usually price reductions which will make the customers want to spend. They will also give advice over the phone if a customer has seen a product online for example they might want some further information about it if the online service didn’t provide sufficient information needed. The staff around the store will also have to know information so they can offer help to the customers, so all the customers will have to be trained to deal with the public so they can communicate with them in the right manner. For example if a customer has decided to go shopping with a list of goods they need and they don’t know where they all are they can ask the customer service department and they can help by telling them the ails where their goods are.
Research and Development
This department is in charge of research and development so that their firm can grow and expand. For example the research and development department at Tesco will conduct research on a new type of energy drink that Tesco are planning to sell. They will research the type of flavours and ingredients that are available and they best ones to use so that Tesco make a profit out of them. Unless a firm is continually improving and developing its product range it cannot succeed. Once a firm has launched a new product in service, if things go to plan sales will gradually increase. But there will come a point where sales level off and then decline. This sequence is known as the product life circle. Declining sales means reduced incomes for the business. Businesses are always looking to develop new products or relaunch old ones with some changes that are attractive to customers. Because of this many firms have research and development departments. These, usually small, sections aim to come up with new ideas to improve either the design of the product or the performance of the product. In attempting to suggest improvements and changes the R&D section must bear in mind three considerations
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The three ‘p’s
- Price – any new ideas they have must be capable of being produced at a price consumers are prepared to pay.
- Practicality – new ideas developed in a laboratory or at a designer’s desk are one thing. Making them in large quantities is something else. The new idea is only useful if it can be done in a commercial scale. Another consideration is that the idea is only practical if the consumer is likely to buy the product.
- Profit – any new idea will only be developed by the firm if it is profitable. There is often a conflict between the consumers need and the firms need to make a profit.
These three pressures show how the R&D section needs to be in touch with the Marketing Department as well as the Manufacturing section of the business. Links with the personnel are obvious when it comes to recruiting highly qualified staff to work in this area. Monitoring costs of the development make links with the Finance section important. They need for communication with marketing is great as no new product can be successful unless there is a demand for it.
Human resources
A firm needs to be able to decide on the right people for the jobs it has and ensure that its employees – the people who work for the firm – work well and are content. The part of the production that deals with matters relating to the workforce might be called the Personnel Department, the Human Resource Department, the Manpower Section or the Staffing Department. Whatever name is used, the department needs to look after the businesses staff or personnel needs.
The role of the Human Resources in Tesco is to motivate and encourage employees to work to their full extent. They are responsible for recruiting and dismissing employees, but do not make the decision. The line manger at Tesco is the person who is responsible for making the decision the human recourses department simply help out during the procedure.
The Human Resource Department must link up with other parts of the organisation to make sure that the right sort of personnel are being recruited and managed properly. To carry out its work the Department must make sure it obeys employment law so members need to be able to draw on some legal skills. In order to ensure the workforce is working efficiently and effectively it also uses skills relating to psychology (how individuals think and act) and sociology (how individuals think and act in groups). To help employees work as effectively as possible their work and rewards need to be organised in a way that helps individuals to meet their own needs, as well as the needs of the firm.
The Human Resource Department has an important role in helping to motivate or encourage employees to work to the best of their ability. Successful businesses develop their goods and services to anticipate customers’ demands and satisfy them. It is important that a firm’s employees are kept up to date with changes and development that affect their jobs and careers. This not only benefits the firm but also improves the employees’ furture job prospects.
Tesco want to recruit the best employees and make sure they work
effectively and safely. The responsibility for these tasks rests with the Human Resource Department staff.
They are involved with:
- recruitment, retention and dismissal of staff
- working conditions
- training, development and promotion
- employee organisations and unions
- health and safety.
I will now explain these activities and how the work of human resources affects other people working in the business.
Recruitment
There are eight stages involved in recruitment of staff. Tesco should know about these so they can make the best possible application for work.
- Identifying the vacancy
- Drawing up a job specification
- Drawing up a person specification
- Advertising the vacancy
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Drawing up a shortlist
- Interviewing applicants
- Selecting the most suitable candidate
- Offering the job and agreeing the conditions.
One job of the human resources at Tesco is recruitment. This is when Tesco employ people; Tesco must have enough staff working at all their stores to aid customers if needed. During these difficult times, finding a job for many is almost impossible. People want to work at easy and fair paid places, Tesco is a good place. Furthermore, Tesco will always want to employ people, they usually advertise the jobs which are available within Tesco. The adverts are more often than not seen in shops windows, newspapers and in signs all across the region. The advertisements are regularly eye-catching and big and bold to catch the reader’s attention. It will have all the information on it.
After a certain amount of people have contacted the human resources at Tesco regarding the jobs, Tesco will interview the candidates. Tesco will only employ people who really want to work to the best of their capability and who are trustworthy. Tesco might see their CV if they have one, or contact that person’s previous job people and ask them if that person is a good worker. Subsequent to questioning the worker to be, Tesco will decide whether to employ that person, or let them go.
Retention
One important agenda which the human resource at Tesco does is retention. This just means keeping the staff happy, so they will stay with Tesco for the coming years (maintenance). Retention also may mean keep hold of Tesco’s staff, pay raises, rewards, and more holidays’ as well as business trips. Tesco’s human resource will do a number of things to keep hold of their staff.
Tesco also have development programmes so young people can go through the ranks more quickly. After a year share options, give tiny proportions of the company of give it away cheaper. To keeps Tesco’s employees retention, they will give free health care, private care which Tesco pays for. Give higher car allowances, give good pension rates. Managers can have company car allowances, free car and maybe free petrol if you do company miles.
As well as that, Tesco will provide appropriate training for the staff regularly. Tesco’s staff may think that Tesco do care about their staff, because they are training them, it may keep the staff at Tesco remain motivated and stimulated. This will mean Tesco’s staff will have a high-quality body language, when customers ask the staff for information; they will be pleased at the way they are being treated, so they will come again and again.
Dismissal
The human resources department are also behind dismissing their staff. However they don’t actually make the decision, the line manager will, but they will carry out the procedure e.g. paper work, you can get fired on the spot unless it is very serious. The human resources department will make sure any legal contract issues are not breached, so they don’t file a lawsuit against the company.
The human resources work on the behalf of Tesco and work so they have the best for Tesco while unions protect the employees. Usually the “staff” that is going to be sacked will normally be given a notice – so that they are allowed to work until a certain period of time until they have to leave the business. Sometimes dismissed staffs are paid for the notice period, but this doesn’t mean that they have to work (This is called Payment in Lieu of notice). Employees will be dismissed from work with notice if they are capable of doing their work. Some employees might even be judged incapable of doing their work correctly, therefore ultimately being sacked. Reasons why employees are sacked are: that their attendance is poor; if the work they are doing is not up to standard; or if their attitude is unacceptable.
Employers must also give a clear explanation to their employees, why they are getting sacked to avoid misunderstandings. Advice and help to enable the employees to should also be provided, along with sufficient warnings about the situation. An employer that that fails to provide these could face a claim for unfair dismissal. Misconduct, such as repeatedly failing to obey instructions, is another reason for dismissal. In some situations the employee may be given the sack without a notice. Another reason for dismissal is Gross misconduct which involves situations, like burglary, fighting or drunkenness can lead to dismissal without notice.
Tesco never want to dismiss or sack their staff. Tesco constantly educate staff, and tell the workforce and all the other departments the ‘code of conduct’. This is a set of strict rules, in which all the Tesco staff have to follow, if Tesco’s staff follow the code of conduct, they won’t be in any trouble.
Working conditions
Tesco’s human resources department has to deal with working conditions as well. This is similar to health and safety, but they have to follow simple policies so that Tesco’s staffs works in the right working surroundings. One factor that the human resource at Tesco has to do is to make sure the staffs have the right uniform and equipment when attending work. This is for the reason if a superintendent comes to a Tesco store to review the staff, and they see an employee without the correct uniform et cetera, Tesco may get fined and therefore their reputation will be a great deal damaged and spoilt.
Furthermore the human resources people have to make sure that the lightening and temperature as well as the warmth has to be spot on, if not, one of Tesco’s staff can complain. Tesco don’t want this to happen, so the human resource workforce must be certain that the Tesco staffs are satisfied with the lightening and temperature in the store.
Last but most certainly not least, the human resources department by the side of Tesco should be sure that all their staff have the right length of their ‘lunch time or free time’. If Tesco’s staff are to much overworked this will mean their staff underperforming and not as vigorous. This will have bad body language and in some cases the staff might just leave and go to Asda for example, because Asda’s lunch time might be longer. Tesco must be ensured that the lunch time and free time is fairly and fairly accurate.
Training
The Human Recourses department will have to ensure that all their staff is properly trained and have the right qualifications to do the jobs, and make sure they recruit the right person for a specific job. For example an IT technician will need to know how to work round computers and how they work as well as having the right qualifications to ensure that they are appropriate for the job, they carry out the procedure when the decision has been made, some one to work on tills, good till operator, good communication skills, job application to be made up, a job description, they will advertise the job, information from the line manager, posters in stores or online, they will short list the candidates and will filter which people are suitable for the job.
Another issue which the human resource area at Tesco has to deal with at training is they have to ask the other department e.g. Finance & Operation, what their training needs are, this is when the human resource department ask Tesco’s other departments such as Finance, if training is needed hat area. For example if someone new starts at finance at Tesco, they will need superior training. This means Tesco’s human resource department having to organise the training. Finally Tesco’s human resource department will book courses for their existing staff. This is because same as when you’re driving, if you get older, you tend to make mistakes and forget thing, so training Tesco’s staff frequently, you are less likely to cause accidents etc.
Development
An important part which the human resource department at Tesco carry out is development. This is when the human resource at Tesco tracks the development of their staff. This is an important stage regarding to a staff at Tesco. Usually a supervisor from a higher class will watch and judge the staff. They decide whether the staff at Tesco are trying their hardest and are performing well, if they are not they’ll find a way to help them. The development department will encourage and support endlessly the Tesco staff, this is also known as appraisal. This is the job of the development area of the human resources department at Tesco.
Employee organisations and unions
Almost all of Tesco’s staff, full time workers or part time workers join an organisation and union. To make sure the staffs views are represented employees will often join a trade union. These are national organizations with branches in different parts of the country. Some people choose to join a staff association, whose activities are restricted to a particular employer.
Tesco’s human resource department have a employee organisation and union area, because for example if the business is poor and redundancies are possible, it would be impossible to find a solution to suit everyone so the employer would have to make a difficult decision. Good relations between employers and employees are only possible if both feel that they can discuss major problems and anticipated changes, if there can be discussion and consultation about key issues and if they genuinely want to work together to find a solution. After employees have been involved in a consultative process they are usually more likely to accept a negotiated outcome. A trade union is a voluntary organisation which employees are free to join if they wish.
Another point to indicate about the Employee organisations and unions at Tesco is that, Tesco will try to encourage the staff to join a union for protection; they think it’s the best option, because if one of the staff has an accident, the union can offer help. Finally the organisation and union at Tesco will always support their staff, if they have any problems.
Health and safety
They are also responsible for the health and safety of their staff. They regularly check the equipment to make sure they are safe to use or be around. Staffs needs to be trained to high standards. It’s the job of the human resource department to make sure that their staff are up to date with new technology e.g. stock check are no longer done with one and paper checklist but with electronic hand held scanners.
The human resource department set up the health and safety department, so that they can make sure that Tesco’s staffs are working in the right environment and in a safe environment. If the staffs at Tesco are happy with the health & safety they are getting, they will be happy, if they’re not they’ll leave. Additionally the health and safety the Tesco staff are receiving have to be satisfactory, because happy staffs are productive staff, which Tesco are looking for.
Promotion
The last job of the human resources department at Tesco is promotion. Before Tesco put on the market a new product, it is the job of the human resources area to promote the product, before selling it. Promotion involves disseminating information about a , , , or company.
Sales promotion techniques include:
- Free samples – small packages of the product may be given away free. Tesco have to make sure that all their customers have had a free sample of the product, so that once the customers has tried the new product they will want to use it again and so buy it.
- Free gifts – Tesco will give free gifts, such as tee shirts or sports bag. Tesco will want to use this type of promotion as the same principle as competitions as it aims to increase sales through attractive gifts. The free gift will often have the manufactures name on it.
- Coupons – Tesco usually print coupons in pres advertisements or leaflets. They allow the customer a price reduction on the nest purchase of a particular item. The idea is that once the customer has tried the new product they will wish to se it again and so buy at full price next time.
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Competitions – Another way to promote a recently new product for Tesco is to allow the customers the chance to win a holiday, car or some other luxury items. This can attract a lot of attention. The manufacturer aims to make the prize attractive enough so that people will buy the product in order to enter the competition.
Division In Tesco
I will now discuss the division in Tesco. Tesco has the following division:
- Tesco Direct
- Tesco Mobile
- Tesco Telecom
- Tesco Pharmacy
- Tesco.com
- Tesco Grocery
- Tesco Personal Finance
Within each of these divisions there are individual functional areas.
Each division needs the functional area as they are run as separate strands of the Tesco business.
Organisational Structure of the PLC
Board of the at Directors
These are the broad of directors of Tesco. Tesco needs more than one director as it is a very huge business and it would be too much work of one person to deal with. The board of director are in control of all the divisions within Tesco.
Interdependence
Methods of Communication
In order to work efficiently the functional area inside Tesco must communicate effectively.
The use of IT
Information technology (IT) is a way for big business to reduce costs and improve their goods and services. There are a number of ways in which this might be done.
Electronic Communications
Tesco have to use E–mail instead of first-class stamp because E-mail costs less than a first-class stamp and is able to reach computers around the world in hours or even minutes, rather than days or weeks which an ordinary postal service can take. Some firms such as Tesco have an intranet facility. An intranet operates on the same source as the internet but is constrained to employees in a particular firm or department. The intranet allows information and messages to be posted and accessed by staff in a far smaller amount of time than traditional notice boards or internal memos.
Sharing of common data
At Tesco they can share common data by using Microsoft excel on the computers and making this information available to people with a certain level of authority. This will allow problem with staff to be dealt efficiently and easily.
Tesco have Computer-based systems for the reason that they are very fast when it comes to finding information and take up less space than paper-based systems. Certain types of computer-based systems let quite a few people have access to the same record at once and allow records to be kept up to date very speedily. Details of sales, outgoings and employees, for example, can be shared centrally and kept up to date. Linking computers together in a network is a very efficient way of organising them, although it can be expensive to set up. With a well-run computer –based system linked records can be found very easily. Once the computer has been correctly installed it will operate as required and is very consistent.
Security systems
Tesco are recommended that as well as keeping records on the computer hard disk duplicate or back-up copies should be made on floppy disks each day and kept in a different area (or office block) from the computer. This means that the firm will still have its records obtainable even if there is a major emergency such as a conflagration, inundation or theft. Staff access to computers and computer networks should be by passwords that include numbers and letters, which should be changed on a regular basis, not left near the computer and not easily guessed by anyone else. Data can be protected against computer bugs that can disrupt data using commercial programs such as McFee or Norton Antivirus. Pirated software should not be used as this is also a cause of viruses.
External communication
Tesco know that E-mail is a swift and cheap way of contacting colleagues and customers, and can be used to conduct market research. Other ways include questions on company websites that encourage visitors to the site to respond. Counting the figure of ‘hits’ on a site is a way of measuring the effectiveness of how the site and the business are being advertised. Some firms conduct all their business on the internet.
Online support for customers
Tesco are a massive company worldwide, they have their own website to help their customers online. Groceries companies, such as Tesco, will help customers by putting information on their website about the prices of certain food etc for instance. A number of companies correct errors in their programs by sending amendments, or patches, to customers via their website. Tesco also help out their customers by having an online website in which their customers can go on it and order food for example and get in delivered to their front door very quickly and they are very reliable. Furthermore Tesco like to respond to queries given to them by their own website, Tesco will therefore gain reputation, because their customers will think that Tesco are loyal and do care about their customers.
Electronic transactions
Since the 21st century, technology has grown massively, Tesco have used this to their benefit, computers can help sales by processing payments. The barcode system allows computers to ‘read’ the information about products and register this with the till in all the Tesco stores. Previously these tasks were done on paper by clerical staff. Other uses of this are orders, invoices and electrical funds transfer. The start of electrical transactions has helped Tesco as a company extraordinarily.
Business communication
Employees in a business must communicate:
- within their functional area
- outside their functional area
- outside of a business
Communication can take place in a number of ways. The major ones are listed below:
- Oral communication
- Video communication
- Written communication
- Graphical communication
Each of these methods has advantages and disadvantages according to the sort of information being communicated.
Oral communication
Tesco always without a doubt will use oral communication at there store. Spoken, oral or verbal communication can take many forms – in an interview, as a meeting or in a telephone call, for instance. Telephone calls are always happening at Tesco, but in order to save time and money, Tesco will whether do a video conference. Several people for different parts of the world are connected by telephone at the same time and can speak to each other.
Tesco have to know that in any oral communication it is important to speak clearly. And try to avoid using slang and jargon unless it actually helps others to understand! Tesco will have some problem when speaking to someone else if they are from a different background.
The advantages of spoken communication are being fast and immediate. However the disadvantage of verbal communication methods are that they do not allow the same detailed level of preparation and presentation as written methods of communication.
Video communication
Tesco will use Video conferencing as Video conferencing allows people in different parts of the world to see and talk to each other without the expense of travelling to a meeting. Specialist video conferencing equipment can be purchased or hired form specialist firms. Modern computers can be fitted with webcams, cameras than can broadcast pictures over the internet.
Tesco know that there are some disadvantages with using Video communication, for instance one disadvantage of video communication equipment is that it is expensive. However, if the equipment is used regularly as an alternative to sending people to meetings the savings and convenience are generally considered an advantage.
Written communication
This can take many forms. Letters, memos, advertisements, reports and e-mail are example of written communication.
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Letters - Tesco will use Letters to communicate with people and organisations outside the firm. They are not used for communication within the firm. The highest standard of presentation and spelling are important if a letter is to make a good impression. For this reason is should by typed or word processed on high quality paper. Most firms have their name, address and business symbol (logo) printed at the top or bottom of their headed paper. It is also common to include the name of the company chairman or main directors, for example Tesco’s would be Sir Terry Lee.
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Memos - Tesco would use a memo, because it is the most common form of written communication used to pass on massages from one part of the business to another. Memos are not sent to people outside the organisation – letters are used to do it. Memos are usually polite, brief, direct and to the main points. Letters and memos both provide a record of what has been communicated and allow the person writing them to prepare the presentation and wording before sending the message. The disadvantage of these methods of communication is that both the sending and the time taken to receive a reply make them unsuitable for situations requiring swift action.
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Reports - When detailed consideration of a subject is needed it is usual for a report to be made. An individual, or groups, will be asked to produce a report for a particular date. This date is known as the deadline. It is important that deadlines are met as failure to do so may delay the work of others. Each business will have its own style for reports but the following features are common.
- Each paragraph should be numbered.
- A title explaining the purpose of the report.
- A summary.
- Terms of reference.
- Methods followed to complete the task.
- Results of the investigation.
- A conclusion.
- Recommendations.
- An appendix.
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Email – This is a quick way of communication. Similarly to memos E-mails are usually polite, brief, direct and to the point, but can also be quite informal. Document such as letters, spreadsheets or databases can be attached to the e-mail for the reader to look at if more lengthy communication is needed. Pictures and sound files can also be sent this way. An e-mail is a good way of sending urgently needed written or visual communications and is very cheap to use. The disadvantage is that both senders and receiver need to have access to computer equipment and a telephone line in order to communicate. This can be expensive to set up.
Graphical communication
Tesco might think that graphical communication is the best way of communication. This means the use of pictures or diagrams. It can include plans of a building, signs, and charts showing sales in previous years, notices in a notice board or web pages. Good graphical communications can communicate ideas more simply than written words and can be understood by people who go do not have a good grasp of English.
