Analyzing HR Policies of Tesco - Essay Example

Case study: Tesco report Introduction This study is centred towards analyzing HR policies of Tesco. Tesco is considered to be one of the largest retail companies in UK. This organization has secured desirable profit margins over the years. It deals in wide array of products and believes in developing a large base of loyal customers. There are evidences which prove that customer satisfaction level greatly depends on employee productivity. Human resource management plays a critical role in enhancing overall productivity of team members. HR policies mainly comprises of recruitment, selection, training and development, performance appraisal, reward management, etc. All these policies are closely knitted with one another. Human resource management components cannot be separated from each other and they together denote effectiveness of the approach. Tesco employs approximately 310,000 people in its UK branch. The company witnessed certain challenges in terms of declining sales margin and falling share price value. This aspect greatly affected employee base and it was essential to boost up their morale. In this report, drawbacks in HR policies of the company shall be highlighted along with some recommendations to be implemented in the system. Theoretical frameworks on HR practices HR practices and policies revolve around various theoretical frameworks. These frameworks basically state the need for human resource management strategies. Employees should be motivated in every sphere of workplace simply because they are most valuable asset of an organization. Recruitment and selection procedure are basic methods through which a pool of talent is structured within an organization. These initial methods are then followed by the training and development approach. Learning plays an important role in organizational success (Torrington, Hall and Taylor, 2014). A learning organization is always more productive in comparison to other firms. Kolb’s learning cycle includes different components that are generally focused on by HR practitioners. Figure1 further elaborates this cycle. Figure 1: Kolb's Learning Cycle (Source: Bamberger and Meshoulam, 2000) As per figure1, the first phase of this learning cycle is to identify probable learning need. On basis of this need, learning opportunities are appropriately designed. This eventually leads to influencing candidates so that they are able to opt for these opportunities. The last phase of this cycle is critical since it denotes effectiveness of entire learning program (Bonnici, 2011). Evaluation phase helps a team leader to analyze overall impact of learning program on employees. Training programs undertaken by organizations are of different types like on-the-job training; off-the-job training, group based training, individual training, etc. Apart from Kolb’s learning cycle there are other learning theories which demonstrates trend of learning in an organization. Cognitive theory is also referred to as self-managed learning. It is basically participative learning approach where team members come forward to undertake training programs. Experiential learning is a mechanism by which employees are influenced to learn from their mistakes (Brewster, 2008). Maslow’s hierarchy of needs states the different dimensions covered by an organization while designing reward management techniques. As per this model there are some specific factors that tend to motivate an individual. This model has been demonstrated in figure2. Figure 2: Maslow's Hierarchy of Needs (Source: Leopold, Harris and Watson, 2005) Physiological needs basically indicate basic requirements essential for human survival. Safety needs is associated with physical safety along with job related security, financial security, etc. Love and belonging revolves around interpersonal relationships such as friendship, family, intimacy, etc (Hajdini, 2010). Self esteem needs is related to getting respect from others and being valued. On the other hand, self-actualization needs is all about identifying one’s potential and accomplishing everything possible. These factors enable an organization to implement effective strategies in order to motivate large base of employees. Potential drawbacks in Tesco’s HR policies The potential drawbacks observed in Tesco are in three important fields such as training and development, employee relations or reward management. All these approaches are closely related to one another and it demonstrates strategic framework of human resource management. Training and development perspectives are associated with enhancing skills and knowledge base of employees. Tesco does not invest lump sum amount in training and development programs. This in turn develops a base of inefficient employees. On the other hand, training is provided only to newcomers which are an incomplete practice. It can be stated that training and development program should be a continuous process (Mehrotra, 2005). Existing employees also needs to be trained since it enables team leaders or employees to be aware about their strengths and weaknesses. These programs are not standard for Tesco and in turn it reduces morale of employees. It has been observed that employees are more motivated through providing training sessions. Employee relations are not strong in Tesco and it eventually results into organizational conflicts. The company needs to develop strategies so as to prevent any form of conflict in the system. Employee relations are mostly linked with effectively handling workplace issues and reducing impact on organizational productivity (Moon, 2013). UK market is intensely competitive in context of retail industry. Tesco UK encompasses a diverse employee base. These employees belong to different cultures and regions. In such diverse workplace atmosphere it becomes necessary to implement a performance appraisal scheme. This kind of appraisal scheme enables an individual to be determined towards work. Performance appraisal measures should not only be based on individual performance but also needs to be inclined towards group performance (Armstrong, 2006). Group dynamics is not present within Tesco’s workplace environment. The absence of group behaviour is a negative aspect within organizational environment of Tesco. Reward management also encompasses certain loopholes in terms of distribution of incentives, tracking of performance growth, etc. Recommendations Tesco’s HR policies needs restructuring since it has significant impact on workplace productivity. Firstly, training and development initiatives should be designed in an appropriate way. This would basically include dividing training programs into two parts like one for new joinees and the other for existing team members. It is important for every organization to incorporate continuous training and development programs. These programs are structured not only for enhancing skill set and knowledge base of employees but even to understand their queries regarding any form of job responsibility. Team leaders through this approach can motivate those employees who are not able to perform well in an organization. Motivation as per Maslow’s hierarchy model is an important aspect for employee productivity. Training and development program is a tool to motivate team members. Tesco needs to adopt some techniques utilized by other real world organizations like Apple Inc., Toyota, etc. These firms have gained significance in their respective fields. Toyota is known for its quality products or services. Customer satisfaction level greatly depends on employee behaviour. The company is actively involved in training their large base of employees. Training program in Toyota not only comprises of basic functionalities but even includes group dynamics. Collaborative workplace atmosphere is major strength of Toyota. This company motivates employees to come forwards with innovative concepts which can be incorporated within training program. Experiential learning mechanism is actively followed in Apple Inc. The organization considers all of its team members as a valuable asset. This enables the firm to undertake difficult projects and achieve desirable profit margins. Employees usually are allocated with projects and then their experience forms their learning. Experiential learning has supported the company to develop a strong base of employees. On the contrary, there is no specific model adopted by Tesco as it believes in providing training only to newcomers in the system. This aspect needs to be eradicated as team members are not motivated to perform well. Apart from learning programs Tesco also needs to focus on its employee relations. It has been observed that employee turnover rate in the firm has increased in comparison to previous years. To be more precise declining sales percentage has reduced motivational level of team members. Employees always need to be aware about present scenario of an organization. Tesco Plc. can gain desirable profit margins only when team members possess sufficient knowledge about market environment. The company considers its team members to be a separate entity. This is the major loophole in its HR policies that should be instantly eliminated. In overall context, management needs to work in collaboration with employees and arrange for a weekly meeting. This form of regular meetings shall enable the company to focus on different creative ideas and thoughts. Employees might share their opinions in such meetings that might help the company to overcome any form of failures. Employee relations also indicate developing strong relationship with trade unions. Trade union is the medium through which employees can convey their opinions or grievances to management. It is responsibility of the management of Tesco to share their current business scenario with trade union. This shall reduce the distance between both parties and enable management to undertake proactive measures. As per Maslow’s model, self-esteem need is an essential element for all individuals. It is accomplished through giving respect to one another in a team. For fulfilment of this objective it is necessary that group behaviour is encouraged in Tesco. Individual performance needs to be replaced by group performance. Expertise possessed by an individual in one field should be shared by others in a different field. This form of job rotation strengthens employees to perform well in an organization. On the other hand, performing in a group is more beneficial for a firm then focusing on individual performance. Reward management system of the company can be altered with performance based incentives. This would motivate team members who have joined the firm newly since rewards are not directly linked with experience. The group formation technique will support the company to enhance employee morale. Experienced employees in the workplace should collaboratively work with other team members who are new in the organization. Major drawbacks in HR policies of Tesco can be eliminated only if management brings forth an alignment between employee’s interests and common business goals or objectives. Conclusion As per the study, Tesco witnesses challenges in its human resource management strategies. The company is largest retail company in UK but in present scenario it has noticed declining sales volume and profit margins. This organization has put less emphasis on training and development programs. However there are many real world firms which are designing training sessions in order to enhance overall employee productivity. Theoretical frameworks included in this study demonstrate the basic elements which are required for smooth functioning of an organization. Maslow’s hierarchy model encompasses certain features that need to be focused on so as to enhance motivational level of employees. The model briefly states that basic needs should be fulfilled in order to motivate an individual. On the other hand, learning theories and model have been discussed and applied on different real world organizations. Tesco needs to implement cognitive learning approach to attract and retain large base of employees. References Armstrong, M., 2006. Strategic human resource management: a guide to action. London: Kogan Page. Bamberger, P. and Meshoulam, I., 2000. Human resource management strategy. Thousand Oaks, CA: Sage. Bonnici, C. A., 2011. Creating a successful leadership style: principles of personal strategic planning. USA: R&L Education. Brewster, C., 2008. Contemporary issues in HRM: Gaining a competitive advantage. Oxford: Oxford University Press. Hajdini, I., 2010. Innovation management. Germany: GRIN Verlag. Leopold, J., Harris, L. and Watson, T., 2005. The strategic managing of human resources. Harlow: Prentice-Hall. Mehrotra, A., 2005. Leadership styles of principals. New Delhi: Mittal Publications. Moon, J.A., 2013. A handbook of reflective and experiential learning: theory and practice. New York: Routledge. Torrington, D., Hall, L. and Taylor, S., 2014. Human resource management, 9th Ed. London: Pearson Education. Read More