Human Resource Development at Tesco - Case Study Example

Human Resource Development Executive Summary Recent development in training allows companies to create strong workforce through continuous optimization of training programs. The ability to motivate and inspire employees is now a core competence for the best managers. Managers must embrace up-to-date programs as a key weapon in the war to retain top talent, because good people will stay where they feel they are growing and learning. The main UK national training programs include Modern Apprenticeships, Investors in People, Employer Training Pilots, Leadership and Management programs, Sector Skills Councils (Skillsmart )and Adult Learning Grants. Each of these programs is aimed to encourage greater participation in learning in training and increase employees' commitment to work. Applying a program Tesco should take into account the nature of its business and areas of improvements. Table of Content Background of the Company Recent Developments in Training Modern Apprenticeships Investors in People Employer Training Pilots. Leadership and Management programs Programs proposed by BusinessLink UK Sector Skills Councils (Skillsmart) Adult Learning Grants Conclusion and Recommendations Background of the Company Tesco, a UK leader in food retailing industry, was founded in 1924 by Sir Jack Cohen in London's East End. Today, it operates around 2,318 stores and employing over 326,000 people. In the UK, Tesco has opened 1878 stores which operate under Extra, Superstore, Metro and Express trade marks. Tesco replaced Sainsbury and became #1 food retailer in the UK in the mid-1990s (www.tesco.com). Recent Developments in Training Modern Apprenticeships Recent years apprenticeship becomes very popular technique in different sectors of business in the UK. Apprenticeship programs are very effective as they benefit both employers and employees allowing young employees to acquire skills and knowledge during paid employment. To take part in this program a job seeker should: "be in employment; usually have at least four GCSEs (at Grade C or above often including English and Maths) or equivalent i.e.an NVQ 2. Some employers may require you sit an aptitude test as well as an interview; be capable of learning high level skills; have the right attitude and an ambition to succeed" (Modern Apprenticeships, 2005). For Tesco branch this program allows to develop a high-skilled working staff employing young people who is eager to work hard and achieve high position within the company. It will help to sustain strong brand image and deliver better services to customers. For Tesco this program ensures an adequate supply of staff who are technically and socially competent, and capable of career advancement into specialist departments or management positions. In this very case, training is therefore a key element of improved organizational performance as it increases the level of individual and organizational competence. It helps to reconcile the gap between what should happen, and desire-targets and standards of performance; and what is happening and levels of work performance. The advantage of this program is that modern apprenticeship can be started any time of the year (Modern Apprenticeships, 2006). A special attention should be paid for contract for apprenticeship. Although this is to be seen as a contract of employment for the purpose of accumulating employment rights, it is a form of legally-binding working relationship that pre-dates all current legislative rights in employment, and the apprentice therefore has additional rights at common law relating to training. An employer cannot lawfully terminate an apprentice's contract before the agreed period of training is complete, unless there is closure or a fundamental change of activity in the business to justify redundancy. If Tesco trains people and continually ensures they have up-to-date knowledge and up-to-date skills, it follows that it shall able to compete effectively, and reasonably expect to prosper. Investors in People Successive British Governments have recognised the need for training if Britain is to compete internationally. They have developed and supported initiatives to encourage employers and employees to take responsibility for training. One of these initiatives is the Investors in People (IIP) Award given to organisations that can show they are truly investing in their people, i.e. increasing their skills and knowledge towards corporate objectives. So it is worth looking at the four IIP principles. Tesco has demonstrated its ability to satisfy these principles display the prestigious IIP insignia on their letterhead and at their premises. Investors in People principles are crucial for Tesco because they include such important things as: Commitment: Being committed to invest in people to achieve business goals; Planning: Planning how skills, individuals and teams are to be developed to achieve these goals; Action: Taking action to develop and use necessary skills in a well-defined and continuing programme directly tied to business objectives; Evaluating: Evaluating outcomes of training and development for individuals' progress towards goals, the value achieved and future needs. Investors in People aims to develop employer commitment to developing their staff in line with business objectives. This is widely regarded as an initiative of considerable potential, as it should achieve the twin objectives of skill and commitment at the same time as improving business effectiveness. IIP offers an excellent prospect of real progress in finding a way to create more effectively competitive business through developing the skills and commitment of those who work in the businesses. It may be just one more wave in employee involvement, but it is an initiative that is proving popular among managers of all sorts and its developing take-up suggests it will now flourish. Tesco uses this program for a long time and proved its effectiveness for food retailing business (www.tesco.com). Employer Training Pilots ETPs become very popular among food retailers proposing great opportunities for training and skills development. The philosophy behind Employer Training Pilots is that since firms can poach trained labour from each other, there is little incentive for the individual business to devote resources to training. Thus, every firm in the industry should contribute to the aggregate cost of training its labour; contributions being proportional to the number of workers each company employs. Currently there are over 100 NSTOs in the UK. They have no legal authority and are funded entirely through voluntary contributions. Some NSTOs provide direct training, others simply monitor and comment upon the quality of training provided by external suppliers. "The recent announcements of pilot schemes involving the supermarket rivals Asda and Tesco both noted for their commitment to training - are seen as encouraging. Announcing the project that will initially involve 1,000 Asda employees at eight north London stores, People Director, explained that the company had worked closely with the LSC and City & Guilds" (Trapp, 2004). Employer Training Pilots has the following scheme: "Step 1 Work with each business to identify where low skill issues are hampering performance; Step 2 Identify low skilled/qualified employees eligible for support and training needed; Step 3 Assess individual skills needs and develop a training plan to 'teach to the skill gaps'; Step 4 Fund a training provider or college to deliver training in the workplace; Step 5 trained during normal working hours and LSC refunds all or some of wage costs" (Employer Training Pilots, n.d.). For Tesco branch the advantages of Employer Training Pilots will include: free training for employees; paid time off for training; wage compensation to employers; guidance for employers and employees. Leadership and Management programs Leadership and Management programs might be appropriate if there is a problem in managing change which is based on misinformation or lack of information. It requires an atmosphere of mutual trust and respect between managers and employees, and might well be time consuming if large numbers are involved in the change since it is unlikely that mass briefings of people will be sufficient to communicate effectively. In terms of group dynamics three interconnected and often overlaping aims should be considered: first, the effectiveness with which groups operate (team building), second, self-understanding and awareness of social processes and, third, interactive skills which will enable people to function more effectively in groups. Group training can also help in modifying individual attitudes and values in Tesco. Management staff also needs additional training focusing on employee's motivation and work design programs to help worker identify their goal and professional development strategies (Small and Medium Sized Enterprises, 2005). Very often employees feel lack of HR support in the process of personal development, that is why leadership training of mangers is crucial for Tesco branch. BusinessLink UK proposes a wide range of training programs aimed to improve HR training and developing. For the Tesco's branch Training and Developing Others program will help to ensure that training used by the branch is appropriate and effective and cost efficient. Training has a major influence on the success of an organisation. In order to sustain economic and effective performance it is important to optimise the contribution of employees to the aims and goals of the organization. The other program is Recruiting and Selection. For Tesco this program is crucial because employee selection is vital for further successful performance of the branch. This in turn can have possible adverse effects on attitudes to work and the level of job satisfaction. In Tesco relationships between individual workers are determined by the nature of the task, the extent to which individual jobs are specified, and the time cycle of operations. External short courses, and further professional study are also important. It can be effectively used on all the level of training (Practical Advice for Business, 2006). Sector Skills Councils (Skillsmart) The recent trend from a focus on traits or behaviours to a skillsmart approach has seen the emergence of objective-setting as a key issue. Objectives are about improvement and there are a number of levels: business objectives; team/division/departmental objectives linking with the above; individual objectives linking with both of the above as well as individual objectives resulting from developmental needs; training and development objectives. However, rather than seeking to set objectives, managers would be better advised to attempt to agree objectives with their staff. Skillsmart is the best program aimed to improve employees skills and knowledge in retail sector. This program is very effective for Tesco and employees because: "Government identifies and addresses skills needs, raises the profile of UK retail to secure influence and funding andengage with retailers to attract people into a career in the sector" (Skillsmart Retail, 2006). Adult Learning Grants In recent years the government has introduced various schemes intended to provide training for unemployed persons. They are usually engaged by employers to work on an organized training program which includes a period of off-job training. Trainees receive an allowance to which the government and the employers each contribute. It is hoped that on completion of the program they will be better qualified to obtain permanent employment. Adult Learning Grants can be viewed as an investment in people. This is important at a time of skill shortages and when the traditional source of young people entering the workforce will diminish noticeably in the next few years. Adult Learning Grants requires the co-operation of line managers, adequate finance and resources and time. The Adult Learning Grant (ALG) "provides a weekly payment during term time to adults studying full-time for a first Level 2 qualification (five GCSEs or equivalent) and to adults aged 19-30 studying for a first Level 3 qualification (two A levels or equivalent)" (Adult Learning Grants, 2006). Learndirect Courses are aimed to improve knowledge and skills, and to change attitudes. Taking into account the nature of business Tesco involved in these strategy will help to improve efficiency and service quality in this branch. Conclusion and Recommendations It is possible to conclude that all the programs mentioned above will increase participation in learning and training providing Tesco's employees with greater opportunities to improve their skills and knowledge and qualification. All of the programs are a key element of improved organizational performance. They increase the level of individual and organisational competence and help to reconcile the gap between what should happen, and desired targets and standards of performance; and what is happening and actual levels of work performance. There has to be a genuine commitment - from top management and throughout all levels of the organization. Tesco branch should designed programs of development in accordance with the culture and specific requirements of the particular employee and department, and the demands of particular managerial jobs. There should be a clear development policy together with regular reviews of individual performance and a program of career progression. References 1. Adult Learning Grants. 2005. Available at: http://www.learndirect-advice.co.uk/featured/alg/ 2. Employer Training Pilots. n.d. Available at: http://etp.lsc.gov.uk/ 3. List of Sector Skills Councils. n.d. Available at: http://www.ssda.org.uk/ssda/Default.aspxpage=16 4. Modern Apprenticeships. 2005. Available at: http://www.elwa.ac.uk/ElwaWeb/elwa.aspxpageid=645 5. Modern Apprenticeships. 2006. http://www.hrmguide.co.uk/hrd/apprenticeships.htm 6. Practical Advice for Business. 2006. Available at: http://www.businesslink.gov.uk 7. Skillsmart Retail. 2006. Available at: http://www.skillsmartretail.com/ 8. Small and Medium Sized Enterprises. 2005. Available at: http://www.leadership.co.uk/mainpages.aspPageID=125&SectionID=6 9. Trapp, R. 2004. Supermarkets check in. Available at: http://education.independent.co.uk/further/article71964.ece 10. Tesco. www.tesco.com Read More