Tesco's organisational structure

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Task 1

Organisation: TESCO plc

Our Mission

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. We 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.

TESCO is committed to serve our owners, our residents, agencies and each other with integrity, fairness and honesty. 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 caring organization that endeavours to exhibit




TESCO 's profits have topped analysts' forecasts, coming in at £1.4bn, with turnover up 11.5% at £28.6bn. Britain's biggest food retailer also said it had achieved its target for emerging markets as underlying operating profits rose 78% to £212m. Analysts had forecast that the underlying pre-tax profit would be between £1.33bn and £1.39bn.

Six years ago, TESCO launched a four-pronged plan to drive growth in food, non-food, and retail services like banking and overseas hypermarkets in places like Asia and central Europe.

> TESCO expands

TESCO has been expanding more than ever for previous six years

"Six years on our strategy remains the same. It is no longer the same TESCO," CEO Terry Leahy said.

"We have faster growth accessing more areas of opportunity and we look forward to growing the business further in a challenging market," he added.

TESCO is expanding more profitable non-food lines like clothing and growing overseas as its domestic market slows.

In Britain, where consumer confidence is slipping, TESCO's like-for-like sales growth was 4.1% over the year, with volume growth of 5%.

> Jobs boost

In TESCO jobs rate was growing steadily for the last six years.

This was slower than the 4.8% growth rate the retailer reported in January for the seven weeks to January 4.

TESCO, which has 296,000 employees around the world, said it would create a further 20,000 jobs this year.

> To provide good services to the wider community

Corporate Community Investment - 2001

The TESCO corporate social responsibility (CSR) objective is to earn and keep the trust of its customers by acting responsibly and positively in the communities it serves. With a philosophy of "Every little helps" TESCO has put a programme of community activity in place, which aims to be as relevant to all customers as possible. Customers are viewed not just as customers but also as citizens.


Corporate social responsibility is an integral part of the business strategy and is at the core of all business values. Its stakeholders, values and core purpose define the TESCO community programme. Community activity is fully supported by head office and staff.

Community is at the heart of the TESCO business strategy and is a core value.

> To improve quality

The TESCO aim is to create value for customers to earn their lifetime loyalty. At the heart of all activity and communications are the following values which all TESCO staff (centrally and locally) work towards:

* No one tries harder for customers

* We understand customers better than anyone

* We use our strengths to deliver unbeatable value to customers

* We look after staff so they can look after customers

* Treat people how we like to be treated

* We operate as one team which trusts and respects each other and strives to do its very best

* We give support to each other and praise more than criticise: ask more than tell, share knowledge and enjoy work

* We celebrate success and learn from experience.

To be environment friendly

TESCO aims to reduce the environmental impact of the business: recycling 155,000 tonnes a year of packaging waste; 350 recycling facilities at stores; cutting packaging waste by 20%; cutting energy use and CO2 by 20%; removing all CFCs from refrigeration systems. Tesco also plays a part in being environmentally friendly by offering bags for life to customers for one pound to customers so that instead of throwing away the bags they receive from shopping they can buy the bags for life and can reuse it over and over again instead of throwing it away.


Retail: selling clothes, household items, gifts, kids items, and food items.

Manufacturing: they make their own breads and products.

Transport: they provide their own transport to carry their goods.

Communication: they provide Internet services

Insurance and banking to customers

Tesco also has an optician and pharmacy.


Human resources department

Human resources department is the vital section of business, which includes the employees and the employer. This section includes recruitment and removing peoples. Wise organisations like Tesco regard staff, as the most important resource Human resources department is the department, which help them to achieve their aims and objectives. HR Management provides cost-effective tools for managing information about employees and applicants. Tight integration among applications ensures information is instantly available across the system. Since information is entered once and available everywhere, opportunities for data entry errors are reduced, and human resources department and payroll professionals gain time to spend on more strategic issues-organizational goals, and compensation and benefit programs. Tesco take care of their staff so they can do their best to their customers. In Tesco's there are nearly 300,000employees are working. They should praise them for their good work. All employees should treat fairly by the employer. They have to provide opportunities to take further training. All should be treated equally without victimisation, harassment, and discrimination. This help to retain good and high quality staff and there should not any unfair dismissal. Human resources department provide various kinds of activities such as recruitment, training, development, retention, promotion, and dismissal. They have to monitor and maintain a good working condition. The recruitment is done by advertising in a local newspaper afterwards they have to make a shortlist and arrange for interviews. They have to provide good training to their employees for example in large organisation like Tesco the employee is slow in till it shows in computer and they provide them with the skills and training so they can provide better services. The person who is interested and have a career plans should be promoted. They have to provide safety for the employees by checking fire alarms and make them sure it work and ensures that organisation works under the law of health and safety. They have to make their work interesting and let them know there in a safe environment. They employee should be dismissed if he or she breached the term of contract.

Example Of Human resources department In Tesco

Tesco is the leading super market growing at a higher level for last 20 years. During Lesley's (human resources department director) period with the company (1985-1999) Tesco's sales climbed from £3.5bn to £20bn and pre-tax profit from £123m to £900m and eclipsed Sainsbury as the UK's number one food retailer. Lesley championed the need for continuous change within Tesco including a major cultural shift from one of command and control to that of local empowerment based on the guiding principle of treating staff as well as customers. Tesco today is the industry leader in staff recruitment and retention, and a benchmark in customer service. Lesley contributed significantly to the fundamental change in the way Tesco was managed as it went through the transition necessary to deliver better customer service and improved financial performance. Her guiding principle has always been that "if you want your people to excel in customer service then you too must excel in the way you manage them, always remembering that it's not just what you do, it's the way you do it!" and they maintain and they are growing more under Clare Chapman who was the present human resources department director of Tesco. In the mid-1980s, retailers had such a poor image, especially among graduates of secondary school, that it was difficult for Tesco to recruit the right people. Concerned about its long-term prospects, Tesco devised a centralized program for recruiting graduates of secondary school and college. At the same time, to make middle and upper management more productive, the company redefined jobs and responsibilities. As a result, Tesco reduced the number of management levels from six to three and eliminated 4,000 managerial positions. Highly productive employees were brought onboard, and unproductive ones were let go. The employees who survived the cut were granted more flexibility, and motivation improved.

Using Workaholics to assess Tesco's success, Tesco determined that VAP increased 60 percent over the last ten years as a result of the company's efforts in human resources department. In fact, of all the retail companies we analysed, Tesco achieved the second-highest residual income per employee. It's not surprising that Tesco is now considered one of the world's premier operators of supermarkets and hypermarkets. Thanks to its decision to nurture its people as valuable assets, Tesco employs the right number of people, they have the right skills, they are in the right places, and they are doing the right jobs. For the roughly 100 positions it advertises each year, the company now receives some 5,000 applications from graduates of the best colleges and universities.

At Tesco, the success of our growth strategy comes down to our people. So in order to recruit and retain the best Tesco offer attractive salary packages, complemented by a range of innovative benefits. This year we are offering our information technology graduates £21.5k per annum.

Tesco provide 10% discount for employees worked for more than 1 year when they purchase for more than £3 in any UK store and nectar points for purchase more than £1.

Tesco operate a first-class contributory pension scheme for all employees. All Tesco employee benefit from life assurance from the day they join, employee who is a member of pension scheme will receive a lump of three years salary if not one-year salary.

Tesco providing free shares to their customers over two years experience. Tesco profit of £48 million in 2002 is shared between employee according to their % of salary this is called Tesco shares. This is kept in trust for 5years and given with free income tax.

Tesco provide more benefits if you qualify for senior management. Tesco provide various kind of benefit to keep the employee, motivated them and attract new employees around various kind of community.

I referred www. Google. Com and took notes under Tesco human resources department and Tesco human resources department director and www.msn.com for Tesco employee benefit.
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Finance is the other important section in business. It will keep all the record of money coming in and out of business it maybe capital, wages, paid for raw material. Finance is very important in large organisation like Tesco's because payment of wages and salaries should be paid for 300,000 and it had to be paid correctly, on time mistake in the amount paid are never will be received. They should know their investment, profit or loss. They have to make financial accounts from these records as required by law. They have to pay money owing ...

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**** Parts of this deserve more stars, other parts less. It is mostly well researched but does not have a clear structure to help the reader. It is hard to tell what is fact and what is analysis by the writer. At times it just looks like the writer has written everything they know about Tesco and hope that it meets the brief.