Human Resource Management of Tesco Company - Case Study Example

Human resource management Contents Contents 2 Introduction 3 Training, Learning and Development 3 Reward 6 Employee Relations 7 Conclusion 9 References 11 Introduction Tesco is one of the largest retail companies of the world. It is a British multinational company which deals with large numbers of products and services. The company has its retail store in all over the world. Worldwide Tesco has around 500,000 employees. Organizational members of Tesco play a vital role in achieving the growth and success of the company. Therefore human resource practice of Tesco has a huge contribution in accomplishing company’s goal and objectives. Different human resource activities of the organization develop the organizational members according to the need and requirement of the company. In this case study Tesco’s UK business in highlighted. The firm has more than 310,000 staffs in UK. Tesco operated various types of business activities in UK market for a long period of time. But in 2014 the company faced a huge loss in its business in this country. The share price of Tesco dropped significantly in this year. The sale of Tesco was constantly falling. For this reason the company appointed a chief executive officer who looked after the Tesco’s business process and the ways of improving it. As a graduate trainee I have joined this organization. In this case study I have highlighted many recommended ways for improving the business condition by enhancing different HR practices. Training, Learning and Development According to the author Aguinis and Kraiger learning, training and development plays a vital role in enhancing the productivity of the company. It has become one of the important things in HR practices of an organization. Effective training and development program helps the employees to learn and understand organizational processes in a better way. Skills, potentialities, abilities of the employees are improved by this process. Companies design their training program as per the need and requirement of its business. These programs facilitate organizational member by to handle various critical situations efficiently. Trainings are of different types. Company selects type of training according to the organizational culture and need (Aguinis and Kraiger, 2009). Presently to improve Tesco’s situation I would recommend the company to improve its training and development programs. These programs support the business growth of Tesco. The business of Tesco in UK is experiencing a bad condition which can be improved by enhancing employees’ performance and increasing the number of employees. At present the learning program of Tesco focuses on enhancing employees’ performance. But it must be improved enough to make the employees understand about the present business scenario of Tesco. The company deals with huge number of employees in its retail stores of UK (Daft, 2009). Therefore the employees should be provided detail knowledge in the product and service of Tesco so that they can put huge effort to increase the sale. For example the retail company Walmart follows a very effective training and development program which help the employees to enhance the business process as per organizational requirement. Walmart follows mainly three types of training programs like mentoring program, associate group and leadership group. According to these groups different programs are implemented by the company (Lasserre, 2012). Various managers of Walmart take part in the training and development process. Walmart also provides training at different level of management. As an employee I would recommend Tesco to implement same kind of training and development programs to increase efficiency of its employees. Effective management training will help Tesco to recruit efficient employees in its business process. Implementing long term learning program will help Tesco UK to make its employees knowledgeable about various innovative and advanced ways to improve its business process. I would also recommend the organization to motivate its employees by changing and improving business internal rules and policies. Kolb theory of training and development will help Tesco to improve skills and potentialities of employees. According to this theory there are four steps which the company should follow to implement in this theory. In the first stage the Tesco have to analyze the present situation of its business in a detailed way. On the basis of that it can reinterpret its existing experience and identify reasons to change the many things in its organizational process. Concrete experience will help the company to improve its quality of training and development. In the second stage the Tesco will observe the change in its employees after implemented new programs of training and development within the organization. In this step the company will be able to understand about the effectiveness of its training programs which are redesigned for improving employees’ productivity (Leopold, Harris and Watson, 2005). Learning and development programs of Tesco will help the employees to form and develop new strategies for increasing company’s sale. As the company is facing a tough business situation in UK market so I would recommend Tesco to provide practical trainings to its employees for enabling them to handle challenging situations. This is the third step of this Kolb’s model. This will help the company to evaluate its employees after providing them necessary knowledge and training. Reward According to the authors Bowen and Ostroff reward is plays a vital role in enhancing the work performance of employees. In the modern business environment reward system of a company contributes a lot in motivating its employees. Reward system helps company to implement many policies and strategies for promoting high value performances. The authors state that the main objective of reward management is to support employees and their hard works. It helps to strengthen the psychological balance between the employees and the company. Effective reward system motivate organizational members to innovate new ways to achieving the goals and objectives of the company (Bowen and Ostroff, 2004). For getting all of these benefits I would recommend Tesco to improve its reward system for getting productive results. Customer service of Tesco UK can be improved by motivating the employees. Therefore good reward system of Tesco will play an important role in satisfying its customers by enhancing its productivity. By hiring new staffs in its business process the company will increase competition among the employees. In this case if the company provides attractive rewards to its employees for performing extra ordinary job then newly joined employees will also give huge efforts to get rewards (Reiss, 2012). As the result Tesco’s employees will be able to deliver high quality of services for achieving goals and objectives of the company. Maximum employees of Tesco UK work in teams. I would recommend the company to provide reward to its employees after accomplishing the team task efficiently. The team member who is contributing more in team work or who is doing quality works should be rewarded by Tesco for doing outstanding performances. Increasing the number of rewards will help Tesco to retain its good and efficient employees in UK. According to me Tesco have to design its reward system in such a way that it will help to reduce absenteeism among the organizational members (Bamberger and Meshoulam, 2000). By reducing absenteeism the company will be able to improve productivity of its employees in every department of the company. There are different types of rewards. Tesco can implement individual and team reward in its organizational system. In individual reward the company can provide incentives to its employees for selling more products. This will help to increase their dedication towards work and they will be interested to sell more products for earning more money. In team reward Tesco can introduce team bonus. It will facilitate the company in enhance performance of its each and every team in its different departments of its business. I would recommend these two types of reward systems for generating more revenue of Tesco (Tesco Inc, 2014). For example Walmart provides various types of bonus to its customers as rewards. Bonus is gives to the employees based on their performance and work quality. This reward system helped the company to retain huge number of efficient workers. They benefited the company by enhancing its productivity and revenue. Employee Relations As per the authors Bowen, Gilliland and Folger strong relationship of employees with their organization has a huge contribution in the growth and success of the company. Employee relation deals with emotional, psychological, contractual relation of organizational members with the company. The authors states that a business should put huge effort to strengthen its relation with its employees. Employees are the greatest strengths of the company. Therefore good relationship with employees will benefit the company to manage its internal conflicts. Employee relation can be improved by implementing good and effective organizational policies. By building strong relationship the company will be able to make its employees understand about implemented various essential things in its business process (Bowen, Gilliland and Folger, 2000). To overcome the present situation of Tesco the company needs to enhance its relation with its employees. After analyzing this situation I would recommend the company to interact more with its employees. Strong communication will facilitate the employees to discuss different problems with the management team of Tesco. By this process Tesco can improve its customer care service in UK. Employees can highlight the present problems of customer care service of Tesco by maintain strong relationship with each other. It would recommend the company to develop different interactive secessions with its employees to know and understand them in a better way. Trust is a vital factor for improving and enhancing employee relation. I would recommend Tesco to build trust among its employees towards the company. By this process Tesco will be able to enhance respect and values of organizations in its employees. The company needs to focus more on its fair business process for develop strong relationship with its employees. Tesco must focus more on its camaraderie. It will benefit the company to build strong friendship among organizational people. It will help them to establish many new strategies and policies for improving its employee relations. Strong connection with employees will help them to increase their about their job and company. Credibility of employees can be increased by solving different conflicts (Ruddick, 2014). It can be only possible by maintain good relationship with employees. By developing strong relationship the both the employees and Tesco will also be benefited. Employee relations can be enhanced by motivating them in their different works. Tesco needs to share its vision clearly with its employees for making them understand about company goals and objectives. The main goal of Tesco in UK is to increase its sale. For this reason Tesco needs to improve its employee turnover. I would recommend the company to introduce effective strategies and policies by providing career opportunities to employees. For enhancing employee relations Tesco should involve its employees in its decision making process. It will help the company to strengthen its relationship with employees by make them feel as an important part of the company. Tesco of UK needs to hold different meetings with its employees for improving their relationship with company. I would also recommend Tesco UK to implement different programs to enhance contractual, professional and emotional relationship with organizational members. Conclusion In this case study as an employee of Tesco I have recommended many things to improve the business condition of Tesco UK. For a long time Tesco is performing its business in UK. But suddenly the company is facing a very bad condition. It sale has decreased a lot which has reduced the profit of the company. As a result the company experienced a significant fall in its share price. According to my opinion Tesco should improve some of its internal rules and strategies for improving its business condition. I would recommend Tesco to improve its training and development program by implementing effective strategies. This will help the company to make its employees more knowledgeable and efficient. By implementing Kolbs model Tesco can improve its learning programs to increase its employee productivity. The organization should also enhance its relationship with employee for overcoming present problems of Tesco. The company also needs to focus more on reward system of its employees for motivating them to increase the sale and revenue of Tesco UK. Presently the company in UK has a large number of employees. If those employees are used efficiently then Tesco can create huge revenue in the coming years. References Aguinis, H. and Kraiger, K. 2009. Benefits of training and development for individuals and teams, organizations, and society. Annual review of psychology. 60(1). pp. 451-474. Bamberger, P., and Meshoulam, I., 2000. Human Resource Management Strategy. CA: Sage. Bowen, D. E. and Ostroff, C. 2004. Understanding HRM–firm performance linkages: The role of the “strength” of the HRM system. Academy of management review. 29(2). pp. 203-221. Bowen, D. E., Gilliland, S. W. and Folger, R. 2000. HRM and service fairness: How being fair with employees spills over to customers. Organizational Dynamics. 27(3). pp.7-23. Daft, R. 2009. Management. Masson: Cengage Learning. Lasserre, P. 2012. Global Strategic Management. Singapore: Palgrave Macmillan. Leopold, J., Harris, L., and Watson, T. 2005. The Strategic Managing of Human Resources. Harlow: Prentice-Hall. Reiss, M. 2012. Change Management: A Balanced and Blended Approach. Norderstedt: Books on Demand. Ruddick, G., 2014. Tesco crisis: everything you need to know. [online]. Available at http://www.telegraph.co.uk/finance/newsbysector/epic/tsco/11181686/Tesco-crisis-what-you-need-to-know.html [Accessed on 20th March 2015]. Tesco Inc, 2014. Vision, mission and values. [online]. Available at http://www.tescocorp.com/bins/content_page.asp?cid=4-1167 [Accessed on 20th March 2015]. Read More