Human Resources Management


Human Resource issues have always been in the limelight when achieving supermarkets' goal and objectives whether it is regarding changing company policy, employee related or delivering good services to customer. As we now move further in to the 21st century it is obvious that effective management of an organisation's human resource is a major source of competitive advantage and may even be the single most important determinant of an organisation's performance long term. HRM exactly differs from traditional personnel management. It will be treated as a diverse body of practices, loosely unified by a concern to integrate the management of personnel more closely with the core management activity of organisations. HRM ensures that the organisation has available the skills it needs to complete effectively in all aspects of its operations. Most firms employ its personnel in central and divisional human resource of personnel department which are specialist in HR, but they are not variable, outnumbered by local supervisors and managers who carry out HRM activities every working day. "HRM is both a set of activities and an approach. It is the management of staffing such as recruitment, selection, placement, promotion and termination. It embraces planning, information systems, career guidance, job design, reward systems, training, diversity and safety. It is also concerned with the importance of people, particularly their attitudes and their performance, to an organisation's effectiveness and efficiency." ["Halligan, 3"]


The utilisation of people within an organization is a function of a broad range of dynamic factors. These include the leadership, culture, and objectives of the organisation; the environment in which people are expected to perform; and the diversity and self-management of the people themselves. ("By Gerald R. Ferris, Sherman D. Rosen, Darold T.Brnum, 1995, pg no 1")

In this age of competition around the world, most of the organisations are concentrating on most important factor that is human resource. Managing the human resource is a key source of sustainable competitive advantage for business. The prospective economic growth centre of the world in the 21st century is Asia specific region. Because the APEC (Asia specific economic cooperation) is made of a broad diversity of culture, economics, legislature, political system and labour market in differing stages of development. This international heterogeneity gives rise to a variety of approaches to and unique experiences of HRM in firms and agencies. ("by Michael Zanto and Matt Ngui, 2003")

In the past few years human resource management has become significantly more important worldwide, both in management theory and as applied management practice. Numerous conferences, frequently on an international level, are been organised to bring together analysis and researches. Business schools have introduced HRM courses into their core curriculum, and new text books are regularly being published. Companies are now claiming that they are now spending more money on personnel development and in public speeches CEOs emphasise that the company's employee are the firm's most valuable asset. ("by Rudiger Pieper, 1990")

Human resource management has gained rapid and wide spread acceptance as a new term for managing employment. It remains, however an ambiguous term. People question whether it's different from neither traditional personnel management, nor it all to gather clear what it's consist of on practice. ("By Chris Hendry, 1995")

In the world, the organisation facing eight major challenges which are as follows,

  • globalization,
  • responsiveness to customers,
  • increasing revenue and decreasing costs,

    building organizational capability,

  • change and transformation,
  • implementing technology,
  • attracting and developing human capital,
  • ensuring fundamental and long-lasting change

Above stated brief fundamental regarding human resource management we now discuss in the context of supermarkets. Before we discuss it, let's go through brief history of supermarkets and information about selected supermarket for our case study TESCO.

History of super market:

On Aug. 4, 1930, Michael Cullen dramatically changed the retail landscape by introducing the nation's first supermarket in Queens, N.Y. He dubbed it King Kullen, inspired by a picture his son drew of a man sitting on Top of the world. Seventy-five years later, supermarkets can be found in every corner of the United States. They popularized the idea of self-service. They spurred the growth of mass merchandising. They helped liberate women from the kitchen. They contributed to suburban sprawl. And they encouraged innovation, leading to the advent of the shopping cart and the bar code. Today's supermarkets are much different from the one Cullen built in 1930, when banks were closing their doors and mom and pop stores could no longer afford to let their customers shop on credit. "We were entering the Great Depression, so the supermarket was offering products to an impoverished nation," said Bill Greer, director of editorial service at the Food Marketing Institute in Washington and author of "America the Bountiful: How the Supermarket Came to Main Street." "From a business standpoint, it was a gamble." But the gamble paid off.

According to the Smithsonian Institution, the first true supermarket was opened by ex-Kroger employee Michael J. Cullen, on August 4, 1937, in a 6,000 square foot (560 mē) former garage in Jamaica, Queens, New York.


TESCO is one of the biggest supermarket having lots of food line, it provides fresh local food with expediency and value in town and city centres. It having a wide range of food and non-food lines, such as stationary electronics, including seasonal items such as garden furniture. The major private sector employer in the UK is TESCO. It has 360,000 employees worldwide. Around 86% of all sales be from the UK. Containing Tesco stores variety from small local Tesco express sites to large Tesco extra's and superstores the company also operates in 12 countries outside the UK. It is counting china, Japan and turkey. The company has of late open stores in the United States. This international expansion is a part of Tesco's strategy to diversify and grow the business. In Thailand customers are used to shopping in 'wet markets' where the produce is not package which caters for local needs.

Tesco needs people across a wide range of both store-based and non-store jobs:

  • In stores, it needs checkout staff, stock handlers, supervisors as well as many specialists, such as pharmacists and bakers.
  • Its distribution depots require people skilled in stock management and logistics.
  • Head office provides the infrastructure to run Tesco efficiency. Roles here include human resource, legal services, property management, marketing, accounting and information technology.

Tesco needs to ensure it has the right number of people in the right jobs at the right time. To do this, it has a structured process for recruitment and selection to attract applicants for both managerial and operational roles.

Tesco aims to ensure all roles work together to drive its business objectives.

Employees planning:

Employees planning are the method of analysing an organisation's probable future requirements for people in terms of record, skills and locations. It allows the organisation to arrangement how those requirement can be achieved through condition and training. It is vital engaging on a regular basis for both the food and non-food parts of the business.

Requirement of jobs because

  • Expansion of business internationally creates jobs(company opens a new store)
  • Vacancies arise as employees retire, resign or promoted within the firm.
  • Changes and progress in the processes and technologies creates a new kind of jobs.

Tesco provides many opportunities for career development to its human resource within the organisation. This encourages people to work their way through and of the organisation. This calls 'talent planning'. They held annual appraisal skim in which individuals can apply for bigger jobs. Employees identify roles in which they would like to develop their carriers with Tesco. Company provides periodic, necessary, and required training to its HR. The company achieve its business objectives with connecting employees personal and carrier objective.

Employees set out their ambitions target and training goals. While managers identify technical skills, competencies and help employees to develop training plan for new target.

  • includes start up with subject to context, shopping mall history, Tesco model of customer service and role of HRM in such as customer relation lane.
  • includes meaning of HRM, strategic HRM, goal of HRM, human resource planning, recruitment, training and development, performance management, implementing HR policy and more important data about HRM.
  • includes research methodology which contains research process stages, process of research methodology, research approach, and sampling
  • includes findings and analysis which contains all data about Tesco.
  • includes conclusion

Literature review

Meaning of HRM:

HRM has two main forms of existence One in the form of academic discourse and activity. This finds expression in conferences, journals, books, courses in business school and soon. The other is in the form of practice in organizations that employ people and thus have employment relationships. These two modes of existence at times intersect and trade of one another. At other times they exist relatively in dependently each fuelled by their own interests, priorities, prejudices and logics.

HRM is considered as effective management of employees at work. HRM examines what can or should be done to make working people more on for individuals interested in learning about people working within organisations. Its goal is to help develop more effective managers and staff specialists who work directly with the human resources of organizations.

HRM is specifically charged with programs concerned with people. The employees HRM is the function performed in organisations that facilitates the most effective use of employees to achieve long term organizational and individual goals. Whether an HRM function or department exists in a firm every manager must be concerned with people.

HRM involves all management kind off decisions and actions that affect the nature of the relationship between the organisation and employees- its human resources. A General Manager makes important decisions daily that affect this relationship, but that is not immediately thought of as HRM decisions: - introducing new technology into the office place in a particular way or approving a new plant with a certain arrangement of production operation, each involves important HRM decisions.

Our approach emphasizes two features which are appropriate to HRM. First the manager generally accepts more tasks for ensuring the alignment of personnel policies, competitive strategy and other policies impacting on people. Second the personnel staffs has the mission of setting policies which govern how personnel activities are developed and implemented in ways that make them more mutually reinforcing.

Human Resource Management is a strategic approach of overseeing employment relations which emphasizes that levering people's capabilities is critical for achieving competitive advantage for the organisation this being achieved through a distinguishing set of integrated employment policies, practices & programmes. (Ref: john brat ton and Jeff gold, in 2007, pg no-7)

Strategic HRM:

This section examines the link between organization business strategy and HR strategy.' "HR strategies" are here taken to mean the patterns of decision regarding HR policies and practices that are used by management to design work and select, train, develop, appraise, motivate and control workers. Studying HR strategies in terms of typologies is the ability to academics because conceptual frameworks or models give HR researchers the ability to compare and contrast the different configurations or clusters of HR practices and test theory (Bamberger and Meshoulam, 2000). STRATEGY IMPLEMENTATION is an area of activity that focuses on the techniques used by managers to implement their strategies. STRATEGY EVALUATION is an activity that determines to what extent the actual change and performance match the desired change and performance. (Brad ton and gold, published by- Palgrave Macmillan, published in 2007)

Since the early 1980s when human resource management arrived on the managerial agenda, there has been considerable debate concerning its nature and its value to organisations. From the seminal works emerging from the Chicago school and the matching model of HRM (Fombrun et al., 1984), the emphasis has very much concerned its strategic role in the organisation. Indeed, the now large literature rarely differentiates between human resources management and strategic human resource management. Some writers have associated HRM with the strategic aspects and concerns of 'best-fit, in vertically aligning an organisation as expressed in the organisational strategy (Fombrun et al., 1984) or by creating 'congruence' or 'horizontal alignment' between various managerial things. (Ian beard well at all demon fort university Leicester, in 2004)

The application of the adjective strategic implies a concern with the ways in which HRM is critical to the firm's survival and its relative success. There are always strategic choices associated with labour processes in the firm-whether highly planned or largely emergent in management behaviour and these choices are inevitably connected to the firm's performance (Dyer 1984, Purcell and Ahlstrand 1994: 37-42). These choices are made over time by the whole management behaviour- and these choices are made over time by the whole management structure, including line managers and HR specialists (where they exist).

Human resource management can be defined "as a strategic and logical approach to the management of an organisation's most valuable assets - the employees working there who individually and collectively contribute to the achievement of the organisations objective and goals"

John Storey (1989) believes that HRM can be regarded as a 'set of interrelated policies with an ideological and philosophical underpinning'. He suggests four aspects that constitute the meaningful version of HRM:

  • A particular constellation of beliefs and assumptions.
  • A strategic thrust informing decisions about people management;
  • The central involvement of line managers;
  • Reliance upon a set of 'levers' in order to shape up employment relationship.

"Strategic HRM is an approach of decision making on the purpose and strategy of the organization concerning the relationship between employees and its recruitment, training and development, employee performance management, reward & recognition, and the employee relations policies and practices. It is an essential component of the organization's corporate or business strategy

Strategic HRM addresses broad organizational concerns relating to changes in formation and traditions, organizational performance and effectiveness, corresponding resources to future requirements, the improvement of distinctive capabilities, and the managing of change. It is got to do with both human capital requirements and the development of process capabilities, is the ability to get things done effectively. Ideally it considers any major people issues that affect or are affected by the strategic planning of the organizations." [Armstrong, 2]

However, it is difficult to identify the relationship between human resource management and strategy and it appears to be easier in theory than in practice. Margin son et al. (1998) found that 80 percent of senior managers in HRM claimed that they have overall HRM strategies but few can describe what the strategies are! In effect, both academics and practitioners have found it hard to appreciate the meaning of strategic human resource management in practice. Hendry (1994b) concedes that strategy is the dominant theme in HRM but also a misunderstood concept and the perspective writers on HRM offer on strategy is often glib and lacking in sophistication (1994b: 2) Perhaps the problem is compounded by lack of case studies, which enable us have a insight look into the strategy in practice. For practitioner part, the stress of SHRM in theory has led to great interest from senior management team but fail to fit the lower-level managers.

Strategic human resource management can been defined as "linking of human capital with strategic goals and objectives in order to improve business performance and develop organisational culture that foster innovation and flexibility which will help organisation achieve competitive advantage" (Chaturvedi 1996). Strategic HR refer to accepting the Human Resource function as a strategic partner in the planning and creation of the company's strategies as well as in the execution of those strategies through HR related activities such as recruitment, selection, training, development and rewarding and recognition for personnel. Although, strategic HR understands HR's partnership role in the strategizing process, the term HR Strategies refers to specific HR related actions the company plans to pursue to achieve its aims and objectives.


As per Lazear and Oyer (2004), use of measures like promotions, recruiting, and wage setting to confine key aspects of HR exercises in supermarkets. For promotion exercises, they measure the percentage of employees hired into the 2nd quintile that move to a higher quintile in four years and the wage growth of employees starting in the second quintile over the four-year time span. Hiring patterns are confined by the blending rates of all full-quarter workers in the establishment as well as by the proportion of accessions (new hires plus recalls) in the fourth and fifth wages quintiles within the firm. Wage policies are measured by the mean and deviation of log the real earnings for full quarter employees in the firm.

The main aim of human resource management is to develop and improvement of understanding of how management functions can affect the performance of a business. Human resources are one of the most significant characters of many businesses - especially in an economy where there is a growing shift towards service-based industries. Human resources account for a large proportion of many businesses' costs and it is the people that invariably drive a business. Management of these resources therefore is an integral part of business success.

The responses to the more use of technology and to economic and competitive pressures have changed the nature of people management in a number of ways. These include slimmer and flatter organization structures in which cross-functional operations and team working have become more important, more flexible working patterns, total quality and lean production initiatives, and decentralization and devolution of decision making.

The findings of the employment in Britain survey as described by Gallia et al (1998) were as follows:

  • A rising demand for skills and qualifications which was particularly marked for managerial and professional workers, technical and office staff and skilled manual workers;
  • A growth in job insecurity, more so for men than for women;
  • An increase in the number of part-time and female workers-the expansion of women's work has been almost entirely an expansion of part-time work;
  • the emergence of human resource management as a philosophy of managing people which emphasizes investment in training, the development of commitment, communications and paying for performance;
  • A greater emphasis on flexible working to provide for rapid response;
  • an associated increase in the number of workers on non-standard contracts (part time, short term, and the use of self-employed subcontract workers);
  • A reduction in career prospects through promotion as a result of the flatter organization;
  • A reduction in the power of the trade unions, partly because of legislation, but more significantly in numerical terms for structural reasons, particularly the decline of large scale manufacturing and the rise of the service industries;
  • Associated with the decline in the significance of the trade unions, a move towards individualizing the employment relationship, with less reliance on collective bargaining;
  • little evidence that participation in industry had increased with the restructuring of employment in the previous decade;
  • A widely prevalent view that the level of strain (tension and fatigue) had increased as a result of the greater intensity of work and long working hours.

The goals of HRM:

The specific goals traditionally associated with human resource management are attracting applicants, retaining desirable employees and motivating employees

The quality of work from motivated people is light-years ahead of what you get from people not well motivated increasingly another goal is being added-that of retaining employees.

How a firm manages its human resources related to organisations survival, growth, profitability, competitiveness and flexibility in adapting to changing conditions.

Focusing on the bottom line is a key way in which hr departments can gain recognition and respect in organisations. The feature on General

Electric describes specific ways in which the HR department can influence the bottom line improving productivity, improving the quality of working life, increasing the firm's legal compliance, gaining competitive advantage and assuring workforce adaptability. These are the overall goals of Managing are illustrated in back up.

  • Productivity: - without a doubt, productivity is a goal of every organisation. Human resources management can do many things to improve productivity. The most productive organisations in us know this and treat their hr departments in ways that are different from less productive organisations.-they focus on important current problems before they assess new programs.-they ensure that the department participates in strategic decisions affecting the successful implementation of business strategies.
  • Quality of working life:-providing a high quality working life means among other things, responding to employees and involving them in the decisions of the organisation.
  • Legal compliance:-"professor Lawler is one of the leading authorities in human resource Management". Because legal compliance is so important, it is discussed in all chapters of this text.
  • Gaining competitive advantage:-gaining competitive advantage means using hr practices to gain lasting advantage over the competition.
  • work force ability:-"in business, there is only one true long-term competitive advantage and key to stake holder satisfaction: people Our one going challenge at Harley Davison is to ensure that we have the most talented employees in our industries addressing the many issues of our markets and keeping us ahead of our competitors." (By Randall and s.s Chuler, New York)
  1. To give students with a deep understanding of the purposes and knowledge necessary to develop and implement a full range of human resource practices within areas of specific interest.
  2. To provide needed understanding of underlying theory and relevant government regulations necessary to develop and implement a full range of human resource exercises that remain consistent with the highest levels of ethics and professional standards.
  3. To provide an understanding of the role of HRM in the development and achievement of strategic goals in an organization.
  4. To develop student's level of self-awareness, improve the communication level and computer data analytical skills, and increase their compassion to workplace diversity and corporate social responsibility issues.
  5. To offer students with information on the professional field of Human Resource Management and to provide an opportunity for students to interact with HR professionals in the region through internships, apprentice, assignment and projects

Human resources deals with the well being of the labour force, the areas, which have to be highly considered, are:

  • Human resource planning
  • Recruitment
  • Training and development
  • Performance management

A business, which performs well to these four points, will help the labour force contribute to the business capably.

Human resource planning

This section of human resource management is part of the overall planning of the business. Planning how best human resource can be used will help the business meet its objectives. To increase the potential of human resource management within a business employees need to be used efficiently, to do this they need to be managed efficiently using the following ways:

  • Planning how to inspire and make happy labour
  • Planning how to expand an organisational culture
  • Planning how to maintain or build up employees
  • Analysing current employment needs
  • Forecasting the current likely future of employees
  • Forecasting the likely future supply of employees that will be available
  • Predicting labour income


Recruitment is needed within a business to exert a pull on the right type of potential employees. The human resource management team when promoting a job needs to make clear about:

  • What the job entails
  • What qualities are required?
  • What rewards are needed to retain and motivate workers?

Training and Development

Training is very important to a business because if the employees are not correctly trained then they will be inefficient and cause the business not to run easily and lose profit. If employees lack in training customers will recognise this and will feel that the business is not sufficient for their needs. Not only will customers recognise the employee's lack of training but the employees themselves too, they may feel that their business has no time to train them, which will discourage them within their work and they will not work to their best ability. Also less training will prevent the business from us its employees to the best of their skill to increase work efficiency. The aims of training are:

Well skilled workers will be more productive. Training will overall improve the abilities of the employees, which will increase the effectiveness of the business by better quality work being produced therefore keeping the customers happy, which will increase sales.

Performance Management

Within a business if employees are unhappy then they will not work to the best of their ability therefore in order to gain effectiveness from the employees they have to be familiar for their work. There are many ways in which appraisal can improve a business:

  • Improve performance
  • Provide feedback
  • Make better motivation
  • Recognize training needs
  • Identify potential for promotion
  • Award salary increases
  • Set out job objectives
  • Provide information for human resource planning

The performance of an employee will improve through many different motivation methods, below are a few examples:

Appraisal - this can be done through many different people, for example:

  • Superiors
  • Self appraisal
  • Peer appraisal
  • Subordinates

As per me the goal of Tesco is to satisfy customer needs and wants. And try to satisfy the customer requirement and make a profit and also to face the competitor and stand in the market for doing a good business. Tesco always tries to satisfy all type of customer as per their requirement. And also try to satisfy the employee for give them a good pay also give them a discount for their purchase.

At the speculation grew that Tesco direct would be floated as a separate company, taking advantage of the buoyant valuation still accorded to new economy business. In April 2000, several newspapers carried rumours that a valuation of up to £4 billion was expected extraordinarily a quarter of the value of the parent company, such was the economic insanity of the time. A leading HSBC analyst poured cold water on the excitement. 'It would be completely illogical to float Tesco Direct,' 'In fact it would be physically impossible to do so.'

With sales of £125 million in the year, had made its planned operating loss of £11.2 million, and was predicted to break even in two years. Tesco marketing director Tim Mason, the original sponsor of club card and home shopping also took on the job of chairman of, while Tesco strategy director John Browett became chief executive, and Carolyn Bradley became chief operating officer. Tesco chief executive Terry Leahy promised £35 million investment to accelerate expansion of the service in the 2000 financial year. goal was to become the UK's number on internet shopping destination. Its breakthrough year was going to be 2001. And one of the key differentiations was going to be club card.


The aim will be to implement policies fairly and consistently. Line managers have a key role in doing this. As pointed out by Purcell et al (2003), there is a need for HR policies to be designed for and focused on front line managers. It is they who will be largely responsible for policy implementation members of the HR can give guidance, but it is line managers who are on the spot and have to make decision about people. The role of HR is to communicate and interpret the policies, convince line managers that they are necessary and provide training and support that will equip managers to implement them. As Purcell ET at (2003) It is line managers who bring HR policies to life.

  • develop an integrated compensation plan
  • The board has approved the plan and monitoring and evaluation mechanisms are in place.
  • The plan has been communicated to employees.

In some instance, it may be advisable to appoint someone internally who will help facilitate the efforts of the interim executive. This person will be responsible for evaluating the performance of the executive and conducting periodic reviews at identified project milestones. This person can be the sponsor or another senior staff member. Often, this person will be someone who has a vested interest in the positive outcome of the project or assignment. In certain circumstances the senior human resource practitioner may be appropriate for the role. For instance, when there is a planned or unplanned departure of a senior manager, the human resources executive may want to collaborate with the interim executive in the hiring of a permanent replacement.

The criteria for hiring an interim executive should be no less rigorous than those used when hiring a permanent employee. Specifying used when hiring a permanent employee. Specifying what experience and qualifications are needed for the job is merely a minimum. To be successful, expected behaviours should also be defined.

Conditions of increasing competition have focused attention on the role of company human resource policies within the wider business strategy. Changes in policies towards employees are frequently claimed to be integral to company success in the face of intensified market pressures. However, despite the importance of these issues, relatively little attention, to date, has been paid to the possible links between innovations in the management control systems (MCS) responsible for implementing the desired strategic changes and the management of human resources.

In particular, this examines the opportunities for HRM to contribute to the successful implementation of new financial and production-control systems. One of the principal aims of these new MCS is to widen the responsibilities of managers and supervisors and to increase their accountability to senior managers. A distinctive feature claimed for HRM is that line managers and supervisors become more involved in implementing an overall policy on human resources. Clearly, there exists an opportunity for these two sets of changes to support one another. The intended widening of line managers' duties might potentially include additional human resources responsibilities. The desired increase in managerial accountability creates the opportunity for them to become more involved in promoting a distinct HRM philosophy and approach


"Introductory period" refers to a period of up to three months of employment for a newly hired employee. At the end of the introductory period, an employee who has demonstrated satisfactory competence in fulfilling the functions in the position and integration into the organization may be come regular full-time or part-time employee. Other factors in the organization such as availability of funds, the continued need for the position, and expectations for continuing satisfactory work performance in the position may influence the appointment as a regular employee. Termination can occur at any time during and after the introductory period if the employee's performance consistently fails to meet minimum performance standards.

After completing the introductory period, the prospective full-time staff member is eligible for selected, no mandatory benefits available to regular employee of the organization.

A no compensation-related performance evaluation by the staff person's supervisor will determine whether the introductory period has been completed satisfactorily. Current employees who are promoted or placed in a new job are subject to these policies regarding introductory period expect that they will retain their regular employee benefits.

A Policy is a general guide that expresses limits within which action should occur. Policies are developed from past problem areas that management considers important enough to warrant policy development. Policies free manager from having to make decisions in areas in which they have the most experience and knowledge. After the broadest policies are developed, some organisation develops procedure and rules. These are more specific plans that limit the choices of managers and employees.


-john Lubbock, quoted by peter porter

The first task of the process is to identify what policies and procedures your organisation requires. This means considering the subjects from all three categories:

  • mandated policies and procedures
  • recognized as needing policies and procedures
  • changes requiring policies and procedures

It also means contacting appropriate people within your organisation to obtain the necessary information. Usually, to identify requisite policies and procedures, you need input from a verity of sources, and that type of information gathering works best when you have a stating list of subjects to be considered. Even if the subjects on the list are not those in the final completed list, they serve as anchor points to begin the review process.

There are two basic approaches to developing a starting list. Which approach to use depends on whether your organisation has an existing set of HR policies and procedures. If it does, they provide a starting point. If not, you have to create a starting point. You could begin by just asking managers what they feel should be covered, but generally, it is easier for them to provide information when you can give them an initial list.

In any event, once you have a list, you may need to add to it. If you are in human resources, you may have knowledge of additional subjects and other existing policies and procedures requiring revisions. You may know of new laws that mandate policies and procedures. You may have records of internal problems that can be corrected by having a policy and procedure. You may know of policies and procedures that are no longer applicable. Whatever the case, if you have such knowledge, you need to add those subjects to your list.

The global advantage project's purpose is threefold: (1) to provide a systematic descriptive analysis of key HRM policies and practices at a macro, contextual level in APEC economics; (2) using the data presented in (1), to undertake a preliminary comparative analysis identifying key similarities and cooperation in the employment relations domain; (3) to provide the basis for a series of micro-level studies on HRM policies and practice that focus on key areas of organization and industry performance in the APEC region.

The organisations core rewards values are what the organisation stands for, which informs the principles on which the reward strategy in founded. Structural issues include the strategy features (e.g. Performance-related or profit-related pay) and the administrative policies surrounding these features. Process features include principally how the strategy is communicated and implemented and the extent to which employees are involved in the design and implementation of the strategy (Redman T., 2001).

According to Lawler (1995).The reward strategy consists of three components:

The organisations core reward value, Structural issues and Process features.

Interestingly, no changes have occurred in the reward system by replacing Alistair with Catherine Forrester. This was opposite to the expectation taking into account the background and type of policy that Catherine has adopted as a person who is in charge of the Human resource Management. The remuneration system has been a tripartite system; private health care, permanent health insurance, and pension based on final salary. Catherine found that her task is to amend the appraisal system especially after the systems problem has been re-emphasised by the employee survey as not applicable for shop floor staff as they would have little chance to identify the type and extent of influences on the achievement of objectives. The introduction of the competency-based appraisal approach as recommended by outside consultants had inflamed the situation without reaching to any decisive conclusion on this issue. The custom that adopted was a mix of the old and partially of the new system.

If we look at the appendix 2, the reward style in FTL has lots of discrepancies. The reward were not equally divided and organized for e.g. the senior managers earned 20% extra on their salary whilst up to 5% for a semi-skilled shop floor and administration staff and 16% for professional engineering and middle management.

Clearly, the problem is not only in the appraisal system it is also embedded in the inconsistencies of implementation of the bonus system. The bonus applies on certain branches differently from the one that is applied on the FTL. The other branches have already been enjoying company cars whilst this has not the case with FTL.

When it comes to pay salary, it is also evident that there have not been any plans that fit the environment. It looks as if the senior management has been cut off from the changes of the environment. No sooner that the engineers have started to ask for salary rise in correspondence with the competitive labour market, both Steve and Catherine have been forced to create a distortion in the pay structure. The solution made has been short termite by offering them premiums for taking works in overseas units. Apparently, the solution has only postponed the problem rather than solving it.

Individual performance related pay (PRP) is defined by ACAS as: a method of payment where an individual employee receives increases in pay based wholly or partly on the regular and systematic assessment of job performance (ACAS, 1990).

Profit related pay has grown considerably in recent years and concept of the profit-sharing scheme is quite simple: the company pays a bonus to eligible employees, based on company profits, which the employee must use to buy shares in the company. Unlike profit-related pay, this is not a part of the employee's salary- it is discretionary bonus. However, like profit-related pay, it gives tax advantages to the employee because the share bonus is tax-free provided that the scheme is approved by the Inland Revenue. (Tom & Adrin, 2001)

This section will report on the organisations HR policies, the information is taken from current articles which are outlined in the appendices.

Tesco's profits have soared 20% in the last year, taking them to verification 2 billion and condition a new landmark for UK business. The company takes almost one of every three pounds used up in a supermarket, and more than one of every eight pounds used up on the High Street. The supermarket chain is Britain's largest private employer with near 260,000 workforces (Poulter, S. 2005).

The human-resource approach at Tesco's revolves approximately work simplification, demanding traditional policy, regular out core skills to all control centre workers and presentation administration correlated to achieving steering-wheel targets. This highlights the method in which Tesco's business method are personally correlated to show management (Anonymous 2003).


A procedure or role is a specific direction to action. It tells a manager how to do a particular activity. In large organisations, procedures are collected and put in to manuals, usually called standard operating procedures. (Sops)

Organisations must be careful to have consistent decision making that flows from a well-developed, but not excessive, set of policies and procedures. Some organisation, in effect, eliminates managerial initiative by trying to develop policies and procedures for everything. Procedures should be developed only for the most vital areas.

Characteristics of human resources management: - An important part of the debate, both in the USA and in the UK has been the search for the defining characteristics level this expedition has proved largely unresolved because of the wide range of prescriptions and expectations placed upon the term and relative lack of available evidence to determine systematically whether or not human resource management has taken role as a sustainable modal of employee management. This difficult is further compounded if one considers a series of critical question about human resource management.

  • Is human resource management a practitioner-driven process that has attracted a wider audience and prompted subsequent analytical attention?
  • Is human resource management an academically derived description of the employment relationship which practitioner has subsequently become drawn?
  • Is human resource management essentially a prescriptive model of how such a relationship ought to be?
  • s human resource management a 'leading edge' approach as to how such a relationship actually is within certain type of organisation?


The human resource management journal and the international journal of HRM have become well established in the field. The literature presents 'hard' and 'soft' versions of Human Resource Management. The 'hard' version emphasizes the term 'resource' and adopt a 'rational' approach to managing employees ; that is aligning business strategy and HR strategy; and viewing people as any other economic factor, as a cost that must be controlled. The 'soft' HRM model emphasizes the term 'human' and thus advocates investment in training and development and the adoption of 'commitment' strategies to ensure the highly skilled and loyal employees give the organisation a competitive advantage. For some the HRM model represents a distinctive approach to the organisation of work and the management of the employment relationship that fits with the new economic order 9beer ET at, 1984; Betcherman ET, at 1994. For others, the emerging body of literature about the HRM paradigm heralds the beginnings of a new theoretical sophistication in the area of management formerly called personnel management (box all, 1992). The HRM model has its detractors. It is identified by a number of scholars as a manipulative form of management control that represents a renaissance of a unitary (non-union) style of management (wells, 1993); that is, a cultural construct concerned to manufacture acquiescence to corporate values (keenly and Anthony, 1992) and that plays a central role in 'constituting the self' and controlling the work force (Townley, 1994). Great and Oswick (1998) emphasize the deep divisions among HRM Practioners concerning the personnel management versus HRM debate.

While the new HRM model, with its proactive approach toward labour management, envisions the human resource specialist as an 'architect' and an intellectual partner on the management team (Tyson and fell, 1986), the HRM movement has not all been in one direction. The drive to improve performance and to pursue 'excellence' has, in many companies, produced learner (and some world add, meaner) 'flatter structures. Such experimentation in organizational design has placed greater emphasis on the role of the line manager with non-specialists devoting more or their time to personnel and related activities.

The Harvard model of HRM:

The analytical framework of the 'Harvard model' offered by beer et al. consists of six basic components:

  • Situational factors
  • Stakeholder interests
  • Human resource management policy choice
  • HR outcomes
  • Long term consequences

A feedback loop through which outputs flow directly into the organisation and towards Stakeholders. The Harvard model for HRM is shown in the Individual and Organisational Performance before we discuss the model, we need to discuss how, according to guest; HRM differs from orthodox personnel management and to identify the major assumptions or stereotypes underpinning personnel and HRM. Human resource management, according to the stereotypes is distinctively different from orthodox personnel management because it integrates human resources into strategic management, it seeks behavioural commitment to organizational goals, the perspective is unitary with a focus on the individual, it works better in organizations that have an 'organic' structure, and the emphasis is on a full and positive utilization of human resources. Implicit in the contrasting stereotypes is an assumption that HRM is 'better'. However, as guest correctly states, 'this fails to take account of variations in context which might limit as an approach to managing the workforce' (1987, p.508)

Founding fathers of HRM were Harvard school of Beer (1984) who developed Box all (1992) calls the Harvard framework. This framework is derived on the principle that the problems of historical personnel management that have existed over the time can only be solved when managers and leaders develop a viewpoint of how they wish to see workers involved in and developed by the enterprise, and of which HRM policies and practices would help them achieve those goals. Without a central philosophy or a long term strategic vision-which can be provided only by HRM managers is likely to remain a set of autonomous activities, each guided by its own practice and tradition. They also stated that HRM involves all management decision and action that affect the nature of the relationship between the organisation and its employees-its human resources. According to the Harvard school HRM have two characteristic features. First, line managers and executives generally accept more responsibility for ensuring the alignment of competitive strategy and employee policies, second employee has the mission of setting policies that oversee how employee's activities are developed and implemented in ways that make them more reinforcing mutually.



  1. Identify research topic.
  2. Define research problem.
  3. Determining how to conduct research.
  4. Collection of research data.
  5. Analysis and interpretation of research data.
  6. Write dissertation.

Research approach:

There are three approaches in research methodology

  1. Descriptive research
  2. Exploratory research
  3. Sampling

Descriptive research:

As the name entail, the main objective of meaningful research is to describe something- frequently market features. Descriptive research is conducted for the below reasons:

  1. To explain the characteristics of relevant groups, such as customers, sales people, organisations, or market areas. For example, we could build up a profile of the 'heavy users' (frequent shoppers) of local strip shopping centres and evaluate this to the characteristics of regular visitors to major shopping centres.
  2. To estimate the percentage of units in a specified population exhibiting a certain behaviour. For example, the proportion of heavy users who shop in both the local community shopping areas and the large shopping centres.
  3. To determine the perceptions of product characteristics. For example, how do shoppers observe the friendliness of service they get when shopping and whether this is an significant choice criterion?
  4. To decide the degree to which actions and marketing variables are associated. For example, to what extent is shopping at the local superstore related to purchase of other military in the local shopping centre.
  5. To make specific prediction. For example, how much would sales drop if the 'consumer attractors such as banks or supermarkets were closed or moved?

A proper research design specifies the methods for selecting the sources of information and for collecting information from those sources. An evocative design requires a clear specification of 'who, what, when, where, why and way' of the study. (It is interesting to note that news reporters use a similar formula for describing a situation.)

Research Design


As the name imply, its objective of exploratory research is to discover or search through a difficulty or situation to supply insights and understanding. Exploratory research could be used for any of the following purposes:

  • To originate a mess or define a problem more precisely.
  • To identify replacement courses of action.
  • To develop theory.
  • To divide key variables and dealings for additional examination.
  • To increase insights for budding an approach to the problem.
  • To create priorities for additional research.

In general, investigative research is important in any condition in which the beneficiary does not have enough understanding to proceed with the research project.


The sampling techniques presented to you can be divided into two types:

  1. Probability or diplomat sampling;
  2. Non-probability or judgemental sampling

Probability samples the chance, or probability, of each case being selected from the population is known and is regularly equal for all cases. This means that it is possible to answer research questions and to get objective objectives that need you to estimate statically the characteristics of the population from the sample. As a result, probability sampling is frequently associated with review and experimental research strategies. For non-probability samples, the probability of each case being selected from the total population is not known and it is not possible to answer research questions or to address objectives that need you to make statistical inference about the characteristics of the population. You may still be able to simplify from non-probability samples about the population, but not on arithmetical grounds. For this reason non-probability sampling (other than quota sampling) is more often used when adopting a case study plan. However, with both types of sample you can answer other forms of research questions such as 'what attributes attract people to jobs?' or 'how are monetary service institutions adapting the service they provide to meet recent legislation?'

Research method:

The research methodologies are of two types that is qualitative and quantitative. The qualitative method consists of conducting interviews, taking up a case study approach, taking up surveys; on the other hand the quantitative research methodology mainly depends on the quantity of data collected and also evaluating the problem or issue based on the test results generated. I will be using both the methodologies namely qualitative and quantitative, and also predominantly focus the research with my exploratory research as this mainly involves the human resources development in identifying the Tesco's long term goals and also how they would be posing as threat to the company based on its employees. I am approaching this case of study as an inductive approach on a major basis and also to certain extent will also use my deductive approach. Using the inductive approach I will be able to test the hypothesis which is under development and also using the deductive approach will be able to approach the entire study at various angles so that inside information can be gathered. The primary data for research will be gathered by going through the number of case studies done on Tesco's human resource management and also the secondary will be gathered by the background information in the online resources and other modules.

Qualitative research

Qualitative research aims to provide an in-depth understanding of people's experiences, perspectives and histories in the context of their personal circumstances or settings. Among many distinctive features, it is characterised by a concern with exploring phenomena from the perspective of those being studied; with the use of unstructured methods which are sensitive to the social context of the study; the capture of data which are detailed, rich and complex; a mainly inductive rather than deductive analytic process; developing explanations at the level of meaning or micro-social processes rather than context free laws; and answering 'what is', 'how' and 'why' questions. It employs a variety of methods, including: exploratory interviews; focus groups; observation; conversation, discourse and narrative analysis; and documentary and video analysis. Qualitative research is a research design which reveals many different emphases from quantitative research. Probably the most significant difference is the priority accorded the perspective of those being studied rather than the prior concerns of the researcher, along with a related emphasis on the interpretation of observations in accordance with subjects' own understandings. Burgelman's (1985) research in a new venture division was presented as an example of this research design. His investigation relied primarily on unstructured interviews, a research tool that will be examined in greater detail below. In order to illustrate the nature of qualitative research, a further example will be employed, but in this instance, although unstructured interviews figure in the researcher's armoury, much use is made of participant observation. With this technique, the researcher is immersed in the organisation for an appreciable period of time. ("By Alan Bryman, publish in 1989, pg no-135")

Quantitative research:

Quantitative studies tend to give little attention to context. For example, in studying organizations as such, the researcher is likely to take a number of abstracted variables which represent a sample of organizations (for example, formalization, routine, or technology); as a result, we do not get a 'feel' for those organizations, nor how those variables fit with other aspects of their functioning. Gordon (1985) administered a questionnaire designed to tap top managers' perceptions of their companies' cultures in over 500 organizations. The questions relate to a number of dimensions of culture, such as clarity of direction, integration, encouragement of individual initiative, performance emphasis and the like. Company's scores those low-performing firms had considerably higher scores than low-performing firms on a dimension entitled 'openness in dealing with conflicts and criticisms'. However, two points should be registered. Although Gordon claims that he examines company cultures 'as seen through management's eyes', the question of what are the most important aspects of culture to the firms themselves cannot be answered. Consequently the claim that he was looking at culture through management's eyes (ironically a phase frequently used by qualitative researchers to describe their point of orientation) should not be taken too literally. Moreover, the research gives no sense of context: we do not know how culture connects with other aspects of the functioning of the organizations in the sample, or what it feels like in those organizations.

Quantitative data in a raw form, that is, before these data have been processed and analysed, convey very little meaning to most people. These data therefore need to be processed to make them useful, that is, to turn them into information. Quantitative analysis techniques such as graphs, charts and statistics allow us to do this; helping us to explore present, describe and examine relationships and trends within our data.

Until the advent of powerful personal computers, data were analysed either by hand or by using mainframe computers. The formers o these was extremely time consuming and phone to error, the latter expensive. Fortunately, the by-hand of calculator 'number-crunching' and 'charting' elements of quantitative analysis have been incorporated into relatively inexpensive personal-computer-based analysis software. These range from spreadsheets such as excel and lotus to more advanced data management and stat view. They also include more specialised survey design and analysis packages such as SNAP and sphinx survey. Consequently, it is no longer necessary for you to be able to draw presentation-quality diagrams or to calculate statistics by hand as these can be done using a computer. However, if your analyses are to be straightforward and of any value you need to:

  • have prepared your data with quantitative analyses in mind;
  • be aware of and know when to use different charting and statistical techniques;

Robson (2002:393) summarises this, arguing that quantitative data analysis is:

A field where it is not at all difficult to carry out an analysis which is simply wrong or inappropriate for your purposes And the negative side of readily available analysis software is that much easier to generate elegantly presented rubbish.

He also emphasises the need to seek advice regarding statistical analyses, a sentiment that we support strongly.

Types of data:

Many business statistics textbooks classify quantitative data into data types using a hierarchy of measurement, often in ascending order of numerical precision ("Diamantopoulos and Schlemilch, 1997; Morris, 2003"). These different levels of numerical measurement dictate the range of techniques available to you for the presentation, summery and analysis of your data.

Quantitative data can be divided into two distinct groups: categorical and quantifiable. Categorical data refer to data whose values cannot be measured numerically but can be either classified into sets according to the characteristics that identify the variable in rank order. They can be further subdivided daces as hatchback, saloon and estate. These are known as descriptive data or nominal data as it is impossible to define the category numerically or to rank it.

Primary data is information that is collected by the research, usually for the purposes of a particular research project. Primary data might include information from interviews conducted as part of an enquiry. Similarly, the responses to a questionnaire which forms part of your study would be primary data. As per me primary data means first handed data. Where we collect the data for any organisation in first time means interview (telephonic interview, internet interview, and face to face interview), focus group, survey, and questioner. Primary data affect the organisations profit and loss. And this is good for the organisation because organisation gets a direct data from customers and they get an idea about the future plan. And also it's affect the organisation for achieving their certain goals for making a profit and for satisfying the customers' needs and want. With the help of primary data the organisation understand and known the customer needs.

Secondary data is that which has been generated elsewhere for other purposes. It may be published data (government statistics, trade body survey data, labour market data, etc) or it may be data that has been generated within the organisation (payroll data, HR data sets, minutes of meetings, budget records, etc) ("Valerie Anderson, 2005")


Secondary data are popular for various reasons. First and foremost is cost; even a small survey can be time-consuming and expensive, and the cost of doing a limited state wide or national sample can easily run into six figures. Few researchers can afford large-scale surveys conducted by top-notch survey organizations are available to secondary analysts at little or no change.

A second reason that secondary analysis is popular is data quality. Nationally known survey organizations such as the national opinion research canter at the University of Chicago or the survey research canter at Temple University can afford to invest large sums of money in training interviews and employing supervisors to handle quality-control issues. They already have interviews in place around the country to handle personal interviews as well as computer-assisted laboratories to run telephone interviews. They have experts on staff to handle sampling issues and the design of instrumentation.

Secondary analysis would seem to have it all: low cost, high quality and large quantities of data. However, secondary analysis has at least three major drawbacks. First, the data have to already exist. For example, if you want to study Asian American single-parent households, you may be out of luck: a data set may not be available with sufficient information about this particular population. Second, even if you a study that gathered data on the appropriate population, the interview may not have included questions on the key variables needed for the analyses. Or vice versa: even if the appropriate questions were included in the original surveys, not all survey questions are asked of all respondents. The well-known national survey questions are asked of all respondents. The well-known national survey of families and households, for instance, asked extensive questions about performance of housework of all adult respondents but gathered information about child care only from parents of very young children.

The major disadvantage of secondary data is that the researcher does not have control over the design of the data-gathering process, the data collection process, or any manipulations of the data. Data may be available only in forms that are not suitable for the specific purpose and therefore require some manipulation in order to be useful. Secondary data are generally published data and can be obtained from a number of sources including; established archives, government and state agencies, private companies or directly from principal investigators and researchers. (By Carole Ruth Engle, 2006, pg no-203)

Primary data cost more to the organisation this is one advantage which I know.

In 2006 Tesco, the UK's most successful grocery retailer (with about 30 per cent market share), again reported a record-breaking year. Over the previous four years it had almost doubled group sales (excluding vat) and profits to £39bn and £2.28bn respectively. The 'group statistics' painted a picture of what this growth meant on the ground: the number of stores had tripled to 2672 and employee numbers had grown by about 60 percent to 273000. Significantly, sales to the rest of Europe had grown from 9 to 13 per cent of group sales (up from 6 per cent in 2002). The company had also extended its product range significantly since 2002- moving into non-food sectors and retailing services.

Not surprisingly the 2006 annual report was very 'upbeat' and the chairman, David Reid, summarised future:

UK our sales performance in the UK core business has been strong, as we have invested in all parts of the customer offer.

Retailers gather large quantities of data internally, which may be invaluable for research purposes.

EPOS systems can provide information on sales of products by units and value and much more besides. Customers order forms contain information about the location of customers. Credit records too may have location details and frequency of purchase. According records will be useful for sales history and forecasting trends, while previous research may now be used as internal secondary data for the purposes of the new search.

The use of store cards or 'loyalty' cards such as the Tesco club point or boots advantage card can provide detailed information on items sold, price, when sold, inventory and also promotion evaluation; in fact the challenge now is not just to provide information but to present it in the most useful manner. ("By roger Cox and Paul Brittain, 2004")

The adoption of the balance scorecard by Tesco also served to strengthen and redefine the role of the stores' personnel managers. The scorecard highlighted the important of all employees' contribution to the success of the company, and therefore the importance of people management issues. To complement this, personnel managers in Tesco stores are also expected to be fully involved in the day-to-day running of the stores, thus enhancing their business awareness and their credibility (IRS 2000)

The basic requirement of HRM to serve the corporate strategy and achieve corporate aims by means of a high performance workforce can be read in two ways:

  • The primary of business needs means that human resource will be acquired, deployed and dispensed with as corporate plans demand. Little regard is paid to the needs of those human resources and the emphasis is on quantitative aspects. This is known as hard HRM.
  • in order to gain a competitive advantage through the workforce, regardless of whether they are full or part-time, temporary or contract staff, all potential must be nurtured and developed, and programmes that pay due notice to knowledge about the behavioural aspects of people at work are developed. This is characterised as soft HRM.

The emphasis in our text lies mainly with soft HRM, but as Legge (1995) argues, the two are not mutually exclusive, and you will detect elements of hard HRM in the discussion of human resource planning.

Unitarist and pluralist approaches to management-employees relations

Human resource management is identifying as being a unitarist rather than a pluralist approach (Legge 1995). Briefly, the unitarist stance is characterised as a senior management assumption that all members of the organisation are dedicated to the achievement of a common goal with no conflict from personal interests. Pluralism, on the other hand, recognises that within a large group of people there two philosophies obviously has a major impact on the way that managers threat the workforce.

Drawing on the experience and expertise of its consumer insight unit (CIU), Tesco developed an employee insight unit (EIU) to depend its understanding of attitudes toward Tesco as an employer. EIU interviewed more than one thousand people outside Tesco, held focus groups with representative employees, and surveyed some sixteen hundred employees on "your life.... your future." The unit wanted to know what employees valued in work, what they perceived Tesco as offering, and the trade-offs they currently made between the two.EIU also incorporated results of the company's other ongoing employee surveys. As a result, it identified five distinct types of workers among Tesco employees:

  • Work/life balancers want to work flexible hours or part-time. They are not necessarily interested in promotions but want challenging and stimulating work and a fulfilling job with responsibility and the opportunity to learn new skills.
  • Want-it-all wants their work to be challenging and varied, and wants the company to be successful. They are ambitions and want promotions. Money is an important part of the deal for them. They are one of the most demanding and mobile groups; they tend to leave Tesco if the job fails to challenge them or if they can increase their salary elsewhere.
  • Pleasure seekers, more likely to be single men, had the least commitment and loyalty to Tesco. This group is ambitious and keen to travel overseas and to enjoy their leisure time. But they do not take enormous pride in their work and do not want work to affect their personal and social lives. They are the most mobile segment, likely to leave Tesco if they can join higher-paying competitors. EIU also concluded that more and more workers in the coming decade are going to be pleasure seekers.
  • work-to-live employees are not interested in working long hours or promotions and don't mind working on repetitive tasks; for them the opportunity to work close to home is important.EIU concluded that work-to-live employees will represent a declining proportion of the working population over the coming decade.

These survey and additional focus groups also suggested that there were four major motivators for commitment at Tesco. Employees are motivated by the social context, more committed when they have colleagues and a manager with whom they enjoy working. They value the opportunity associated with a pay and benefits package and career advancement. They are motivated by the help they receive in the form of training and development that increase their skills, the opportunity to control their workload, and the communication between them and their manager. Finally, they are motivated by job context, a most important theme for many workers. Uninteresting job content was found to be one of the major reasons people leave Tesco. ("By Ken Dychtwald, Robert Morison, pg no-218-219")

Growth plans/special features:

Tesco plc is the largest retailer in the U.K. and one of the largest retail firms in the world. The company operates 2672 supermarkets, superstores and convenience stores in the U.K., central Europe and Asia. The company operates four store formats: Tesco express Tesco metro, Tesco extra and Tesco superstores. Tesco express stores are hypermarkets located primarily in Asia. Tesco superstores provide traditional grocery items as well as insurance, banking, telecommunications products, books, flowers, movie rentals and school uniforms. The firm has expanded all of its grocery stores to include non-food items, such as books, software, electronics and music. Tesco also operates an e-commerce site with over 500000 registered users in the U.K. This division makes nearly 30000 home grocery deliveries each week. The web site also offers over 1 million book titles and approximately 300000 CD, video and DVD titles. The firm also operates the Tesco Direct catalogue and the Tesco baby club. Tesco is involved in the financial services business, serving nearly 1.5 million customers. Services offered by the company include savings accounts, online banking, and travel house and pet insurance policies. The firm owns a 35% stake in Safeway grocery works, a grocery store chain in the U.S. Tesco plans to open convenience stores on the west coast of the U.S. Tesco plans to open convenience stores on the west coast of the U.S. in the early 2007. Also in 2007, the company will begin running a dedicated green rail line between Scotland and the midlands to improve its supply chain.

Financials: sales and profits are in thousands of dollars- add 000 to get the full amount 2006 note: financial information for 2006 was not available for all companies at present time.


Tesco plc is one of the largest retailers in the world. The company operates 3959 supermarkets, superstores and convenience stores in 14 countries. Tesco operates six main store formats: Tesco express, combination convenience atones and gasoline retailers; Tesco metro, small urban stores designed to meet the needs of the local community; Tesco extra, hypermarkets located primarily in Asia: Tesco home plus, offering clothing and other non-food items: Tesco one stop: and Tesco superstores, which provide traditional grocery items as well as other non-food products and services. The firms also operates non-food retailer Tesco Direct with a 7000 item catalogue and 11000 products on its web sites. Tesco personal Finance Ltd With over 5million customer accounts, offers financial services such as savings accounts, online banking and insurance policies. Tesco mobile is joint venture with O2 offers telecommunications services. These transactions are part of Tesco's ongoing strategy to move from owning to leasing property. In 2008, the 2008, the company opened 508 new stores, including 350 stores outside the U.K.

FINANCIAL: sales and profits are in thousands of dollars-add 000 to get the full amount 2008 note: financial information for 2008 was not available for all companies at press time.


Meaning Data analysis:

Numerous data can be used in the performance improvement process. Some tools assist with planning, whereas others are useful for data collection, data analysis, or root cause analysis. The focus of the performance improvement tools is to look at the process, not the individuals, involved. It eliminates finger pointing and instead focuses on actions to correct the root cause. Whether used alone or in combination with other tools, the purpose of the performance improvement tools is to support and enhance the improvement process. (Ref: by "Nancy burden and Donna m, in 2000")

Executive summary

In this report reviews explain about the human resource policies and practices in Tesco's. The Tesco introduced a high commitment model which offers improvement and training to all employees. Employees have improved their image all little class model and also very helpful for the organisation.

Organisations are applying strategic Human Resource as a change agent and also they believe that not to replace an out dated personnel department. Still there is a proof within the UK that once these interrupt are implemented, they just exchange the role of the personnel department. To be effectual Human Resource belongs on the board of an organisation.

Tesco's' operates in a particularly set for success in market; the customer has an option where to shop for their foodstuff. They have extensive their variety to contain CD's, DVD's, electrical goods and garments. Recently they have extended into the financial services present customers products from Credit cards to insurance. And the main thing is those customers get everything from net because it's available for 24 hours.

Every small helps is used to show their guarantee to consumers; this has been used to reduce the prices and improve and satisfy the stage of customer service. This is now used in their employees management that any interfering we will increase the attentiveness of the work force.

Tesco is mainly reported in news papers. This happened because the improvement of the business. Tesco expands in the England with opening metro and now they expand a new stores in foreign as well. This was a great time for the Tesco that Tesco got a good name as a retailer in U.K. Reinforcing the culture and values through training will focus employees on their roles.

HR policy of Tesco

This section will report on the organisations Human Resource policies, the information is engaged from current articles which are outlined in the appendices.

The human-resource strategy at Tesco's revolve around work oversimplification, difficult unwritten rules, rolling out core skills to all head-office employees and performance management related to achieving steering-wheel targets. This highlights the way in which Tesco's business way are strongly linked to performance management ("Anonymous 2003").

Tesco ensures that each and every worker has got the chance to realize his or her person role in contributing to the Tesco core reason and principles. This requires an innovative initiation programme that caters for different cultures, styles of education and varying commitments to the job. The lead employees are considered the ultimate reflection of Tesco to its customers, but all employees have a very vital position to play in turning core principles and customer commitment into reality on a daily base ("White lock, N. 2003").

A major Tesco test is to make sure that all of its workers, wherever they perform, are aware of the task they play and that they can clearly see how their actions affect the "big picture" of the overall business. The training creates a graphical journey from end to end the history of Tesco, its core point, values, business goals, financial aims and marketing strategy and its promise to consumers. All employees are receiving extra guidance than before ("White lock, N. 2003").

A human-resource-led business strategy has helped Tesco to receive the lead over its rivals in the fiercely-competitive UK supermarket sector. The planned policy taking place in the company's supermarkets, where its aim was to free up stores workers so they could do more and get better consumer service ("Anonymous 2003").

Future concentrate on as long as a clear way of significant roles, responsibilities and performance. The system guarantees that all employees are responsible, accountable, consult and informed. A group of 13 key organization techniques is used to get better the core skills of the labour force. The techniques include since study, difficulty solving, plan-do-review, situational leadership and instruction for high performance (Anonymous 2003).

For the initial time, people have been made a core factor of strategy. The meaning of this string of the project has been recognizable by putting a senior director in charge. Quarterly board meeting for all time review human resource issues. Tesco now tracks human-resource information as barely as economic results (Anonymous 2003).

Looking in advance, Tesco intends to go on its significance on growing the skills of its labour force. The firm aims to create learning into a actually included part of its culture, as an important way of developing organisational flexibility and remaining one step in front of its rivals (Anonymous 2003).

Check of HR methods at Tesco

In the section below we are discussing Tesco come up to towards Human Resource and discuss it with present times.

Understanding the value of HR in the UK has increased in the recent past. This is due to threat of competition from foreign economies. Countries like Japan, Germany and Sweden put more effort towards employee satisfaction and development than UK. Many organisations then reviewed their policies and started to invest towards employee welfare. (Beard well, I et al 2004).

There are many basic fundamental changes in the approach of organisations towards HR. Storey (1987) discussed these as 'hard' and `soft' versions of HRM The 'hard' version places little importance on employee' concerns and, therefore, within its concept, any judgments of the usefulness of HRM would be based on business performance criteria only. In difference, 'soft' HRM, while also having business performance as its primary concern, would be more probable to advocate a parallel concern for workers' outcomes (Storey cited in Guest, D. 1999).

The presence of developed educated economies has strict guidelines for growth and production and its effect on hiring employee and managing skill labour. This can result in new policies made by government for the growth of industry. The prime minister established that "education is the best economic policy we have. That through the policy of all-time knowledge the UK would have the data to struggle in the new economy (Tony Blair PM (1998) DTI White Paper). It can be said that the government's plan of learning has been achieved by having guidance included as a considered advantage.

It can be strongly debated that there is always a need for new skills for the organisations survival. This change of thought is depends on complication and confusion theory. Organisations are viewed as self-determining, developing, open, whole systems. This contrasts the symbol of organisations being machines to that of organisations as livelihood systems (Capra (2002) cited in Nixon 2004:58).

Tesco have knowingly included HR in all their plans for development. Maximum managers make the most of their decisions keeping into consideration the aspects of Human Resource. This has shown high promise to HR, attempting to increase getting from all employees, and present to all employees fundamental and extensive guidance (Beard well I 2004). Tesco larger goal of development is made aware to all employees there by enabling them to be aware of their part in it. This emphasizes the importance of their human resource.

Training has now been increased in the organisation for all employees. This outcome of more training being held is due to the HR department having a part in their planned development. Hr is not only an organisational (managerial) department at Tesco but they have a proactive and strategic role. This has given away high assurance to HR, attempting to grow reception from all employees, and present to all employees essential and comprehensive training (Beard well I 2004).

Planned HRM has gained both credibility and popularity over the past decade, particularly with high opinion to its impact on organisational presentation (Paauwe J & Bose lie P. 2003). Individual employees are considered important for overall strategy and therefore they are made aware about their responsibilities towards achieving their strategic goal. This training is held keeping into consideration that it covers all learning skills and cultural differences.

There is a rising need for more importance to be given on employee welfare to get the best results from all workers. According to Delany (2001) victorious organisations turn into individual issues at the front of their suggestion and at the core of their judgment creation and preparation. Delany adds organisations that obtain the people things right are the organisations probable to be approximately in the future (Delany (2001) cited in Mullins, L. 2005). As the numeral one private employer in UK Tesco takes this as their responsibility sincerely and it can be practical by its policies in the track of training and growth. They have more than achieved the recommendations of the government to educate individuals and maintain the development of awareness the social order.

For HR to achieve something it must acquire on a practical task inside the organisation. Strategic HR creates importance by provided that opportunities for artificial learning, development of intellectual capital and enhances core competencies. This value is crucial to the organisation's future success (Treen, D. 2000). Employers are increasing extorting the best possible performance from employees. Best practice will increase the skills of the current workforce, and with recruiting it will reinforce the culture of a highly skilled work force (Mullins, L. 2005).

Implementing training and continuous learning within an organisation requires what Hawkins (1994) called "a alter at the feeling this change is in the considerate of knowledge, a shift from performance learning as being sudden particulars to learning as a extra multi-faceted and dynamic procedure" (Hawkins, P 1994:9).

This learning process is challenging to create an environment that facilitates continuous process right through the administration. As information is what matters, organisations and persons similarly must become constant learners (Hawkins, P 1994). The organization finds the skills in a person and then develops programmes appropriate to the requirements of person workers. The purpose method for this preparation is appropriate to the employee's knowledge favourite.

Tesco stands in the first place against a very competitive market that is largely helped by its business strategy of involving human resource. Its only sustainable if the strategy is constant, with competitors performance monitored for every changes (Mullins, L. 2005). To entirely utilize the prosperity of awareness restricted within an organisation, it must be realised that it is in human resource management that the most important advances will be finished. As a result, the human resource department must be finished a middle figure in an organisation's approach to set up a information foundation for its operations (Armstrong, M 2005).

Human Resource and preparation literatures highlights the organisational remuneration to be gained from adopting a efficient approach to Human Resource Development, therefore the fragmentary development of employees' skills underpins the wider business objectives (Keep, E 1989). This organized approach to guidance frequently includes models that identifying requirements, preparation, liberation and assessment. Harrison developed an eight stage model to categorize monitor and estimate teaching. The estimate stage is probably the most challenging part of guidance process (Reid, M and Barrington, H 1997). Tesco has seen the productivity and results of incorporating training in their business strategy. They have completed it a normal formal preparation to maintain and check it.

Organisations no longer recommend a job for living there is no longer guaranteed employment, with a allowance as a prize for faithfulness and obedience. The "psychological convention" between employer and employee has shifted. Employees are all the time more mobile, changing employment for support, return and job fulfilment; top employees have more choice as to where to work. To retain these key employees the organisations culture needs to allow a surroundings of individual development (Harrison, R 2002).

With less job security, the most excellent reward an organisation can provide an employee is convertible skills (Marching ton M & Wilkinson, A 1997). Due to modify of trend in employment market more and more employees feel less secure about their jobs and are more dedicated towards their career goals. Therefore the knowledge gained within the organisations training at Tesco could therefore be transferable if the employee joins a business competitor. The benefit of training employees exceeds the deficits however this should not be ignored.

Each and every slogan is noticeable to all customers and is also included in the training programme. This is part of the culture and ethos at Tesco. They conduct surveys among employees and to determine the motivation and training that the employees require. |This also helps them to plan for their future occupation. Career expansion is main to the individual employee (Armstrong, M 2005).

Harrison (2002) eminent this as a structured designed attempt comprised of planned performance that outcome in a common career-plotting attempt between employees and the organisation. This is a central component of the emotional agreement that binds the individual to the organisation (Harrison, R 2002).

Conclusion and discussion:

Tesco's future strategy is to go on to put value on worker training and to combine this importance into the background of the organisation. They want to make use of this approach to keep their competitive border. The value that is to be found on Human Resource demonstrates promise beginning the top levels of the organisation to instruction. Tesco's intentions are to keep this increased importance on staff preparation and to join together this knowledge wholly into the organisation. There is stable reviewing of the interference, and make change were required.

The learning of Tesco's Human Resource policies has confirmed that by introducing an advanced level of preparation to all employees it has an outcome on the base line. When the workforce is skilled and representing a higher promise to the organisation they think measurement of the whole strategy. This leads to employees' mood valued and therefore a more devoted work strength this is after that felt by the buyer, with a higher level of facility, which gives the organisation additional value.

The total organisation is concerned in training. This training is presented at every level inside the administration, Managers and facilitators are urbanized to deliver this involvement. Employees have managed on their training after the primary training process. This allows employees control of their profession lane, among the selection of whether they wish for to move up the steps or not.

There is clash surrounded by the popular of organisations in the UK as to how a lot of the resources will be dedicated to preparation. This purchase off for the monetary funds can establish small sighted in the long term. Preparation has used for all moment been the first cost cuts in times of depression. Until now with today's surroundings, organisations require to train the work force to survive. Whereas organisations that hug information and culture satisfies the physiological arrangement and helps to maintain and nature employees. The cost of not developing employees in the long period is faraway superior than the cost of developing them.

Other organisations could advantage from reviewing Tesco's policies. They have established a model performance of Human Resource. This has been a contributory factor to their increase in profits. Competitors will need to review their teaching policies, to reduce Tesco market share. Training as an interference has been a successful policy in the organisation, the confirmation points to improved profits from training.


Its last chapter in this chapter we introduce a conclusion of our research. The aim of this research was to understand and study of human resource management and how it's important to any organisation. HRM has a most valuable and key element of the 21st century. All around the world supermarkets in different sizes have been trying to use of HRM to help them with their competitive businesses. In this time world depends on technology that mean business uses more technical equipment rather than human resource. But for use of equipment organisation need human resource. HRM affect all the businesses.

During my research I learned so many criteria for human resource management. As I understand and research I can say human resource management is one of most important part of any organisation. If the HR managers select a right person for their right place than every organisation is able get success in their business. HR is a primary requirement for the any business. When anyone wants start the business than they first think about the HR. If the planning is not good about the HR than it create a problem for the organisation. In my research I found that so many supermarket try to find good HR which able to help them out for achieving their goal and make a good profit for the organisation. I found that there are so many supermarkets around the world. It all depends on their human resource policies, strategies, model and other so many thinks which says how human resource affect the super market. Tesco is one of the biggest supermarket they got so many food line. It includes fresh food and frozen food they also got a non-food item which include clothes, Electronic, cosmetic etc. And Tesco has 360000 employees in all over the world. I mention the growing rate of Tesco in my report and it shows Tesco was doing a right HR management in their business. The main think is 86% of sales take place from the UK and the Tesco stores operates in 12 countries. Tesco give so many opportunities to the employees for development in their positions and also boost up employees to work in their way for organisation. This take place when they appoint good HR for the Tesco. They are also tried to give training for different position to its HR. the goal of the Tesco is to satisfy employees need and want. I used to work for Tesco they give us a good services. Like if we work more than 6 months than employee get a 'privilege card' means they can get the discount of 10% from any Tesco store and also they raise the pay after certain month. The main aim of human resource management is to increase and development of considerate of how management functions can have an effect on the act of a business. If any organisation select a proper HR manager than organisation can get proper feedback. The excellence of work from encouraged people is light-years in advance of what you get from people not well encouraged increasingly another objective is being added-that of retaining employees. Every organisation tries to satisfy human resource with putting good HR policies.

HR department also looking to improve the productivity, quality of working life, firm's legal implementation and assuring workforce flexibility. The 'hard' version emphasizes the term 'resource' and accept a 'rational' draw near to supervision employees ; that is aligning business scheme and HR scheme; and performance people as several other economic factor, as a cost that must be forced. The 'soft' HRM model emphasizes the term 'human' and thus advocates outlay in training and improvement and the acceptance of 'commitment' strategies to ensure the highly skilled and loyal employees give the organisation a competitive benefit. Tesco give an opportunity to the employees to perform their role properly in the organisation and also they are trying to select different culture people to gather for work. And Tesco always concentrate on employees that are they perform well or not. Tesco is a very doing well UK organisation. They have bigger their market share and retail units more than the past five years. This has been achieved somewhat from side to side a fully incorporated Human Resource department. Although this is not the only factor to their achievement, it has positively been a major factor in it.

Employee planning is wide because if any business wants to meet its future requirement for staff. It allows a business time to instruct existing staff to take on new liability and to employ new staff to fill vacancies or to achieve skill shortages. All organisations want a proper work force which helps the business for achieving targeted goal. Tesco has obvious organisational structures, detailed job images and person qualifications. It provides user-friendly ways of applying for job and dependable approach to recruitment and selection. This means it can manage its shifting require of workforce.


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