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tesco

1. Company: TESCOCompany Type: Public Limited CompanyIndustry: RetailingFounded: 1919 (East


London)Founder: Jack CohenHeadquarters: United Kingdom, EnglandNo of locations : 6351
storesKey People: Sir Richard Broadbent (chairman), Phillip Clarke (ceo)Revenue: 64.539 billion
(2012)Net Income: 2.806 billion (2012)Total Assets: 50.781 billion (2012)Total Equity: 17.775
billion (2012)Employees: 519,671 (2012)Subsidiaries: Tesco Stores Ltd, Tesco Bank, Tesco
MobileWebsite : www.tesco.com

2. History:Tesco, the largest retailer in UK as well as the third biggest in the world in termsof revenue,
was founded in 1919 by Jack Cohen. In 1924 the brand Tesco was firststarted its journey and in
1932 it became a private limited company. Now Tescois operating in 14 countries all over the world.
There are 6351 Tesco stores andalmost 519,671 people working in the company across the world. It
had a marketcapitalization of approximately 24.4 billion as of 15 January 2012, the 15th-largest of
any company with a primary listing on the London Stock ExchangeBusiness Strategy:Tescos
business strategies are mainly focusing on huge domestic market offinancial services, telecoms and
non-food. One of the main objectives of Tescosbusiness strategy is to create sustainable long term
growth and according to thecompany this could be achieved by expanding into global market.The
company initially focused on Asia and central Europe. Most recently it hasmade its entry into the US
market. In 1997 Tesco first decided to diversify andaccording to the company itself this was the
basis of its recent success. As a resultof this strategy several new businesses have been created by
Tesco for the last 12years andmost of these businesses are profitable and competitive.Tesco has
developed its strategies which are primarily focusing on five importantfactors, 1) its core UK
business, 2) community, 3) non-food, 4) retailing servicesand 5) international market.There are four
different types of Tesco stores in the country. These are 1)

3. express, 2) metro, 3) superstore and 4) extra. In UK there are almost 960 expressstores, 170 metro
stores, 450 superstores and over 175 extra stores. Apart fromthese four there are Home plus where
non-food products, including clothing,areavailable.According to Tesco, fulfilling corporate
responsibility and creating values forcommunity are crucial for achieving growth.Tescos various
retailing services include: -Tesco personal finance (TPF),Tesco.com and Tesco telecoms. In UK,
TPF is the most successful supermarketbank. Initially TPF was a joint venture between Tesco and
RBS, but in 2008Tesco decided to buy the fifty percent share of RBS in TPF. All the
financialproducts of TPF are available online. Developing Tesco.com was a strategy ofkeeping
pace with the modern trend. Almost one million people are today usingTesco.com for online
shopping. Currently it is countrys one of the
leadingtelecomserviceprovidersHumanResourceManagement of Tesco:The HR department carries
out recruitment which involves steps that arefollowed: For instance, there is a call for application
after which a criteria is utilized to shortlist those to be interviewed. After the interview, there is a
negotiation of salary to be given and finally job allocation for the qualified. After recruitment, the
candidates are taken through a series of training especially by use of available resources so as to
end up coming up with quality employees.The company uses two kinds of training: One is process
training in which the employee is made aware of his or her duties as well as the all process of the
work. The second category is the on the job training. In this category an employee is given after
the first criteria of process training. The new employee is then inducted into the job by the most
experienced in the job.Tesco understands the relationship between good quality products as well
asaffordable prices; it therefore trains its employees perfectly.The components of Tescos training
procedure involve: Core skill program: This is a basic training meant to equip the employees on
knowledge of handling customers. Winning in Europe: This is training in Tesco Company that aims
at reaching-out to other countries outside the United Kingdom. Excel program: This category of
training addresses all the kinds of training given from basic to the managerial training program.The
training given at Tesco is accompanied with pay especially to those who perform well and this leads
to effective performance at the end of the training.
4. For good employee relations the company also encourages its workers to worknear their homes thus
cut down on time wastage due to transit. The company alsogives their employees freedom of
transfer thus encouraging employee retentionthan frequent recruits of new employees.There is use
of shift to promote unity inthe company as well as exchange of ideas. As a result of a multicultural
society,the HR department also works towards creation of a healthy work environment.Tesco works
towards this by ensuring that every employee knows his or herrights in the organization. To promote
healthy environment both for thecustomers as well as the employees, Tesco prohibits alcohol and
other products inthe same category.It also trains its employees on disaster management so as to
improve safety in thepremises. Such disaster management includes control of fire outbreak or in
case ofburglary.Tesco has committed itself to use commitment based model which does not
forceemployees to meet frameworks. In this model still, psychological approach toemployees is
emphasized. Employee opinions are taken into consideration and arenormally used even during
problem solving process. This model taken by Tescoputs the employee on the fore front so as to
ensure that they are satisfied and canbe motivated to work. Thecomplaints that are normally raised
by the employeesare taken into consideration as well as their suggestions thus promotion ofhealthy
working environment.Payment procedure is the task of the HR department in Tesco Company. It
paysits employees as per the National Minimum Wage Act requirement. It alsomotivates its
employees through pay increment after a thorough proceduralevaluation has been done in the work
place. Promotion is also another aspect ofmotivation in the company.Contribution of various
Components of HR towards: Business strategy:Tesco has adopted a comprehensive business
strategy which entails attainingconsistent growth and increasing the scale of operation in the
internationalmarket. The business strategy also involves attaining a competitive edge in termsof its
human resource. This strategy has enabled the firm to strengthen its corebusiness in its UK
domestic market. Mission statement:The management of Tesco is committed to ensuring that it
develops sustainablecustomer loyalty. To attain this, the management of the firm ensures that
alloperations of the firm are focused on satisfying the customer. This enables thefirm to deliver value
to its customers by understanding them in a better manner.The management is also committed to
integrating the concept of innovation andensuring that it has a wide range of human resources, and
creating a goodworking environment for its employees.

5. Tesco overall human resource strategy:The management of Tesco has formulated a


comprehensive human resourcestrategy. The firms overall human resource strategy entails
integrating employeetraining as part of the organization culture. The objective is to attain
acompetitive edge in its operation. The firms human resource strategy revolvesaround challenging
rules that are not in the firms human resource policy worksimplification, performance management
and ensuring that all the firmsemployees in all its head offices have the necessary core skills. In
addition, thehuman resource training also considers employees at the lower level.Vertical
Integration:Ways in which the firms human resource practices enable Tesco to attain
verticalintegration: Resourcing:Tesco undertakes comprehensive recruitment in the process of
increasing the sizeof its human resource. Both internal and external sources of human resource
areconsidered during recruitment to ensure that the firm becomes competitive inrelation to human
capital. The firms externalsources in human resource are the external market by posting the
vacancy on the internet, offline mediums, radio and television. Comprehensive recruitment and
selection enables the firm to deliver services effective to the customers and also to undertake
product and service innovation. Internal recruitment is aimed at ensuring that the employees are
motivated to move up in their career. Internal recruitment is based on the performance of the
employees. This ensures the employees become more focused at delivering quality service to the
customers. Internal resourcing enables Tesco to incorporate the concept of reward management in
its operation. To ensure that internal recruitment is effective, the management has formulated a
Talent Plan. The talent plan lists the firms employees who are seeking to move for a promotion.
According to Recruitment and selection strategy at Tesco:If the talent plan does not have the
necessary candidate, the vacancy is postedinternally for a period of two weeks in the firms intranet.
Internal recruitmentenables the firms employees to be loyal to the organization since there are
highchances of career development. Human resource development:The management of Tesco
has formulated an effective employee trainingprogram for all its employees. According to
Recruitment and selection strategy atTesco, the training program has resulted in effective human
resourcedevelopment and a good working environment. This is due to the fact thatemployees decide
their training needs which enable them to be in control of theirindividual career paths. Employee
training enables the firm to attain its businessstrategy.

6. Employee relations, rewards and performance:To ensure that the employees are satisfied and
productive within theorganization, the management of Tesco has developed a good relationship
withthem both in the domestic and foreign market.According to Tesco, this is achieved by developing
an employee relations team.The team is charged with the responsibility of developing policies that
enableeffective management of the firms employees. In addition, Tesco rewards itsemployees
based on the value that they create to the organization.Horizontal Integration:Ways in which the
firms human resource practices enable Tesco to attainhorizontal integration:As be mentioned
before, there are three part of the HR strategy. The biggest part of HR strategy in Tesco is Training
and Developing. The second one is communication and consolation. The third one is reward and
benefit.HR strategy is an important issue of HRM in a large organization. Especially asthe
international organization, Tesco is a good example. There are about 470,000employees around the
world. In addition, although there are different strategies,they work for the overall HR goal. In Tesco,
the overall goal is for developing theculture of organization. The HR managers need to use the
different HR strategiesto support the same goals. Training and developing:Training:Tesco pay
more attention on training and developing program. This program isfor everyone who works in
Tesco. There will be a huge number of new employeesfor Tesco every year, some of them have no
the working experience. Tesco willtrain them before they start their work. In those training, they can
get some skillswhich they need for the future work, and they will understand the culture ofTesco.
After the training, they will feel their value been improved, that result inthey will more committed work
for Tesco. This is positive for Tesco to keep theuseful employees, and that may help Tesco saving
some money from recruitment,though recruitment cannot be ignore.Developing:Except the training
which be held by the organization, the employees can developthem skills which they prefer to
improve. This will increase the employeesinteresting on work, therefore, that can develop their as
much as they prefer,result in, the individual development will impact for the organizationdevelopment
which can improve the organizations level.However, there are some negative impacts for Tesco:
Firstly, although the training is for everyone, they cannot take the training in the same time.
Therefore, there are some employees unsatisfied when they will take the training. There will be
some negative competitive. Secondly, some employees will leave Tesco when they get the skills
which they need. Actually, this is not good for Tesco. They pay the employees

7. development program, which is in order to improve their level. If some of them leave Tesco that will
be double worth for Tesco. They need to employ more employees, may pay for the interview fee,
and they have to do the training again. That will increase the cost. Communication and
Consolation:This part is also important for HR goal. That can reduce the unsatisfied of
theemployees. Sometimes, communication is a part of the training and individualdeveloping.
Because after the training, the manager need to get some feedbacksfor them to improve their next
training. And when they arrange the training,there will make some conflict or unsatisfied. Therefore,
the manager has tounderstand what the conflict is made by, and how to deal with them.In other way,
it is an independent part of HR strategy. That because it is notevery conflict which is broke out by
arrangement of training. Therefore, themanager has to understand every way of the employees
needs.Reward and Benefit:This is a basic and direct strategy of HRM. That can let the employees
workhard, that because sometime this is link to their salary and their own portfolio.The discount for
the employees is very kindly for them. In addition, training andindividual developing can be seen a
kind of the reward.In other hand, some employees want to get more bonus, but the level of
themcannot get more, they will unhappy, they may do not hard work as before. Inaddition, the
discount is not for the employee, but also for his/her family andfriends. That would be the potential
threaten for Tesco.Conclusion:Although those strategies are different, and those are influence the
differenttarget. All of them are work for HRM. There will be a link between thosemethods. The
manager will mix them to manage the HR in Tesco as much valueas they can. There are some
different between each one. They have the differentvalue for the employees. The manager will due
to the different responsibility tooperate the HR strategy.Bibliography: www.ukessays.com
www.slideshare.com www.wikipedia.com