INTERNATIONAL HRM PRACTICE


INTERNATIONAL HRM PRACTICE
Tesco plc




INTERNATIONAL HRM PRACTICE
Tesco plc




Table of Contents

Introduction 2

Organization Structure of Tesco 2

Managing the workforce throughout the subsidiaries 4

International Human resource Management 4

Sources of staffing used by Tesco 4

Guest model of International Human Resource Management 5

Tesco rewards ad compensation 6

Theory of Adams equity 6

Cultural awareness training programs 7

Conclusion 8

References 9






Introduction

Tesco plc is a British international groceries and general merchandise retailer with headquarters in England, United Kingdom, Hertfordshire, Welwyn Garden city. The Company was founded in the year 1919 in the industry of retailing, in the year 2019 company has more than 6,800 shops as well as 4,50,000 employees. Due to the gross revenue, it is considered the third biggest retailer in the worldwide and through the revenue; it is considered the ninth biggest retailer worldwide. Tesco has superstore in the seven countries crossways Asia, Europe and considered the leader of market in the country of United Kingdom that is 28.4%[ CITATION Tes19 \l 1033 ]. Tesco plc uses the strategies to expand the business globally, which includes licensing of the technology in a foreign country, acquisition of the direct investment, strategy of exporting, strategic association in the marketplace of foreign and beginning of the joint business enterprise as well as investments in the Greenfield. The expansion is also serves through the understanding of the company to the home customs and ethics of the host states and the environment of market, the company expanded the business mostly with the amalgamation, acquisition and the joint venture. In this report, the organization structure and staffing done by the Tesco is discussed as well as the practices used by the company for the international rewards, compensation, programs of training which company adopt is also analyzed. Further recommendations are also provided to the Tesco for enhancing their practices[ CITATION Tes191 \l 1033 ].

Organization Structure of Tesco

Tesco follows a structure of hierarchical, in this arrangement, roles and responsibility are distributed in several divisions and sub-division to make sure that operation of the company will be performed efficiently[ CITATION Bai16 \l 1033 ]. In the Company, the Board of Directors includes ten members but in the year 2015, there were major modification in the Board of Directors[ CITATION Ade16 \l 1033 ]. These transformation contains the selection of John Allan as the new Chairman, appointed Dave Lewis as a new Chief Executed Officer as well as Alan Steward as a new Chief Officer of financial, the Company also retired four Directors of Non-Executive and appointed the three Directors of Non financial. Due to these changes in the structure of the management, Mr. Lewis declared the diminishing of expenditure across functions of the head office with the thirty percent in the year 2015[ CITATION Kuk16 \l 1033 ]. The company structure of governance contains 5 committee:-

Source:[ CITATION Tes191 \l 1033 ]

The structure of the organization in Tesco is largely hierarchical which shows the bigger range of the business, at each level in the store[ CITATION LiJ18 \l 1033 ]. There are more than four level of in several big stores of the company, but some other stores followed this structure with little difference depending upon the place, volume and the other store- particular aspects.

Store level Structure

Source:[ CITATION LiJ18 \l 1033 ]

Managing the workforce throughout the subsidiaries

Tesco is the organization of employee centric because the employee of the company is to make direct contact with the customers to fulfill their requirements. Tesco is effective in managing the workforce throughout the subsidiaries because it looks for all kinds of resources accessible in great amount to select the appropriate and suitable candidate[ CITATION Sam15 \l 1033 ]. It is done with the help of internal sources, by making the talent plan to get the competent employee from within the organization as well as through advertisement in the websites, television and in various other media based on the country[ CITATION Alb17 \l 1033 ]. The company provides various rewards and benefits like competitive salary, benefits of flexible, scheme of pension, insurance of motor to manage the workforce effectively in all the subsidiaries. The company intended the designation of the line manager in the all the store to lead and guide the employees[ CITATION Zar17 \l 1033 ]. Tesco follow the law of labor, law of safety as well as works use the practices of fair treatment, workforce diversity. The company effectively manages the workforce by fairly monitoring the performance of the employee with the help of feedback, mechanism of target base and online portal and evaluation is done continuously.

International Human resource Management

It consider all the actions that are done with the intention to manage the human resource at the international stage[ CITATION Win17 \l 1033 ]. It attempt to meet all the objectives of the organization and attain competitive advantage over opponents at both the levels national as well as international. International Human Resource Management contains distinctive functions of Human Resource Management, which includes staffing, selecting, training and progression, performance evaluation as well as discharge performed at the international level; it also includes various further training, which are management of global skills , management of expatriate[ CITATION Rei18 \l 1033 ].

Sources of staffing used by Tesco

Internal recruitment- Tesco takes initial look in its Plan of internal talent to fill up the vacancies. It is the procedure, in which lists made about the current staff members looking for a progress, either on the similar level or by the promotions. If presently, the company has no appropriate and suitable person in this Talent Plan, it develops the program of internal management progression. The company does advertisement of the position within its intranet for 2 weeks[ CITATION Ike16 \l 1033 ].

External recruitment- Tesco does advertisement for the vacancies through the website that is www.tesco-careers.com as well as throughout the boards of the vacancy into the stores. For the position of the managerial applications are made through online. For the jobs of stores, Tesco make direct recruitment or through the website, which is Jobcentre Plus. For the job of specialist, Tesco does advertisement in the website, television and radio, magazines like The Journal of Appointment.

Guest model of International Human Resource Management

In the year 2017, the company makes the joint venture of wholesale with the Limestone private limited, holder of Alpha superstores chain. For the new operation of Tesco in the country of Pakistan, the company can adopt the source of recruitment through campus, this helps the company to recruit the suitable and appropriate candidate for the position, Company can apply the Guest model of international human resource management. The model focuses on analyzing the six proportions that are strategies for the human resource management internationally, result of human resource, policies and practices used for the human resource, result of behavioral as well as result of the performance[ CITATION Paa172 \l 1033 ]. This model help Tesco to staff employees effectively by combining the strategies of human resource with the strategy of business; this also helps in flexibility because this leads to make practices about the hiring and recruit the employee who can adapt with varying environment of the business. This also leads higher commitment of the employees because of manager attempt of binding the human resources with the goal of the organization as well as the productivity in the organization will increase due to hiring the talent and competent employees for the organization.

Tesco rewards ad compensation

Tesco support the staff to balance both work and life of the employees through the discount for the gym membership, competitive compensation, discount for the staff as well as providing the free and decrease rates for the benefits of health. Tesco also provide flexible benefits like insurance of dental, vouchers for the childcare. The company adopt the approach of valuing the staff members through providing the realistic goals and interesting environment of working. The company adopts the theory of tailor and provides competitive financial packages to motivate employees and incentives of non- financial through the free share, vouchers, and discounts for the holidays[ CITATION Tay17 \l 1033 ]. It provides breaks of lifestyle for the four to twelve weeks, career for six months to 5 years and scheme of pension. The company develops the plan of development for the employees with the feedback taken by the 360 degree as well as in the year 2017; Tesco raise the compensation of the staff members by 10.5% for the next two years. Tesco applied the theory of Maslow and focused on the hygiene factors through the communication, delegation and participation of the employees. The bank of Tesco also provides various special deals to the staff members, which includes maternity pay, Annual coworker plan of bonus, up to 3.5% of the base salary, services like health and beauty. The company offers the monthly and yearly rewards rewards to the staff members under the ‘Scheme of Shabashi’.

Theory of Adams equity

Tesco has made the new international assignment for the new international assignment in the Pakistan, for this Tesco can apply the theory of Adams equity, which shows that, there should be stability between the hard work done by the employees and the outcomes received. It is benefited for the Tesco to apply this theory because due to the new assignment, employees will excited to do new work and their efforts would be more but they will feel demotivated when the output that is salary, bonus, recognition, sharing of profit would be less than the efforts made by them. The input, which the employees made for the new assignment, includes the efforts of the staff members, skills to do work, knowledge or the information as well as the experience, they will be motivated when in returns they gets the fair output in the form of compensation, bonus, appreciation, share in the profit, responsibilities. The treatment of fairness is always considered appropriate for human resources because the constantly match their hard work with the rewards. Tesco can also delegate the responsibilities to the employees in the lower levels and provides them fair this helps the company to do the work efficiently through the delegation, improves the communication and team work as well as motivate the employees to work more to increase the rewards. For the new operation it is significant for the company to increase the productivity, This theory helps the company to enhance the productivity because through this the employees will be paid according to the contribution made by them, this leads in increasing the competition among the employees to make more efforts for generating the more outcomes. Theory of Adams equity also helps the Tesco in decreasing the exploitation and increasing the relations among the employees, which is considered major for the new operations in Pakistan and increases the motivation. Sometimes the culture difference is also a main problem but through this theory there will be efficient functioning of work because all the employees understand that compensation received according to the efforts made.

Cultural awareness training programs

Tesco provides various cultural awareness-training programs to motivate the expatriates in the international assignment. In the country of Seoul, South Korea the Tesco opened the academy by supply the education for the culture awareness. The company adopt the program of EWAT which means that Everyone is welcome at Tesco, the objective of this program is to enhance the awareness of the managers, all other staff members or the requirements of the consumer about the diversity of the culture[ CITATION GRZ17 \l 1033 ]. This program is developed to create the confidence while dealing and communicating with the member of staff and consumers, which are from the varied backgrounds and communicate the information and abilities to create employees and consumers feel welcome at Tesco. All team of management in the store of Tesco have gone through this program, the program is developed in all the stores throughout the Tesco. The company develops the program of Joining together as an industry on the Diversity and Inclusion in the year 2019, to understand the behavior of each other as well as to support the diverse people to share the knowledge, information and to be treated equally in Tesco. Further the program of Cross- culture communication is also developed[ CITATION Bra151 \l 1033 ].

Conclusion

From the above, it concludes that Tesco plc is the retailer of the international groceries. The company uses various strategies to enlarge the business worldwide, which includes licensing of the technology acquisition, exports, association in the global market. Tesco followed hierarchical framework, in which agreement and the responsibility are scattered in numerous areas, so that company functions effectively. Tesco effectively managed the human resource throughout the subsidiaries by staffing through both the sources, proving various benefits or follows laws like law of labour, law of security . It also concludes that International human resource management contains all the procedures, which performed with the aim to manage and control the human resource internationally. The staffing of the employees in Tesco is done both the sources internal and external sources, which includes developing the Talent Plan internally and advertisements in websites as well as in various other media. The company can adopt the campus recruitment and apply the Guest model for the new operation in Pakistan. Tesco also provides various benefits of rewards and compensation, which includes discounts, insurance, bonus, competitive salaries. The company can apply theory of Adams Equity to motivate the expatriates , Tesco adopt various program of cultural awareness like Everyone is welcome at Tesco, Cross- culture communication. Further, Tesco can use the software of recruit CRM, this helps the company to recruit and manage the employee efficiently. The company can also apply the theory of Vroom Expectancy to motivate the employees, in which individual think that there is the association between the hard work, performance and the results.

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