This unit state that as a human resource consultant you are invites by the company of your choice to advise them on recruiting HR practices to compete effectively at work place.
- Demonstrate models to analyse approach used by firm for managing its human resource.
- Provide discussion of selection & recruitment to human resource initiatives and recommendations for making improvement.
- Discuss approaches to HRD and ways to improve it.
- Provide evaluation of classical theories of motivation and with the help of these develop hybrid theory that contributes from the range of these theories and gaining practical value for these organisation.
- Discuss characteristics of effective leader using model to justify analysis.
Talking in reference with the human resource management, it is nothing but a management of employees at workplace with a view to achieve the goals of the firm. The main responsibility of the human resource department of the firm is to recruit and select eligible applicant for the right job and time. They are also liable to offer proper training and development program to the new recruits, analyze their performance, motivate the workers and manage the most crucial asset i.e. human capital of the company (Hatum, 2010). Employees are being regarded as the most crucial part and thus, maintaining good and healthy employee relations is very necessary. The human resource department of the company is required to pay attention on selecting the people having great employability skills like motivating skills, leadership qualities, team work, flexibility as well as time management skills. With proper human resource management in place, company can gain competitive advantage.
Consequently, the main aim of the present report is to advise the firm on the possibility of restructuring of their human resource practices so as to become more effective in the marketplace. The company taken under consideration is Tesco. It is one of the largest British multinational groceries and general merchandise retailer and has its headquarters in UK. Company has adopted various HR techniques from time to time to cater with the rising competition in the market (Tesco, 2018). Thus, the main focus of the current research study is to assess the approaches of the firm regarding managing its human capital. Furthermore, the report will critically discuss the recruitment and selection process of Tesco and will recommend various points to improve the same process. Evaluation of the classical theories of motivation will be done and features of effective leaders will be discussed by justifying varied models and theories.
TASK – 1 Analysis of Human resource management approaches adopted by TESCO by drawing relevant models
Because of the rising competition and globalization, it is becoming essential for the firm to create such strategies that helps in making the brand image and reputation of the firm unique in relation with the services and quality of products being offered by them. Best output of the input can be achieved through proper management of human resource. The more the employees of the organization are satisfied and happy, the better results will be reaped out (Fitz-enz, 2010). Thus, it becomes indispensible for the business concern to develop good and efficient HR strategies that helps in creating a competitive edge over the others firms in the market. Speaking in regards with TESCO, it operates in the competitive and complex market where the customers have numerous choices to shop for their groceries. In addition to this, the firm has also expanded their portfolio which significantly encompasses DVD’s, electrical goods, clothing and CD’s. In the recent years, the company has also expanded their operations in the financial services that offer valuable services to its customers (Misiara, 2013). The HR strategy of Tesco revolves around challenging unwritten rules, work simplification, rolling out core skills and managing performance linked to achievement of steering wheel targets. Furthermore, the firm also makes sure that that every worker should get an opportunity to comprehend their role so as to contribute in the company’s core values as well as purpose.
Guest models of HRM
It has been witnessed that HRM department of TESCO has taken into consideration Guest’s model and as per this model, the overall strategy of HRM is segregated into five major stages i.e. HRM practices, human resource, behavioral, performance and financial outcomes.
Figure 1: Guest Model of Human Resource Management(Guest, 2011)
According to Guest model, the HRM practices depends upon five major activities like hiring the workers, providing training related to skills and abilities, apprising the performance, compensation and improvement in regards with the workers. On contrary, the outcomes of the human resource are dependent on varied qualities like flexibility, quality and commitment. As per Camelo-Ordazet, all the outcomes related to behavior of the human resource are dependent on co-operation, motivation and organizational citizenship (Guest, 1999). Additionally, it has also been observed that performance outcomes have a good influence and it helps in improvement in the innovation power, quality, turnover, productivity and positivity. As Chang has stated, if there is a good output related to performance of HRM than it helps in reducing the negativity in the firm. Further, it has been observed that the guest model has recognized the concept related to commitment so that the relationship amid commitment and high performance is very difficult to create. According to Muethelet, seeking help through this model, TESCO can clearly execute the progress of HRM activities. The human resource management of the firm also follows the guest model in “Crab-like” situation.
Hard and soft HRM
There are principle variations in the approaches to human resource. These variations are being discussed by Storey has hard and soft versions of HRM. The hard version pays attention on workers and their concerns. Thus, in this version any judgment related with the effectiveness of human resource management is generally based on the business performance criteria only. On the other hand, soft HRM also pays attention on business performance but it is more likely to advocate a parallel concern for the employee’s outcomes (Torrington, Hall and Torrington, 2001). It has also been argued that company needs new skills and abilities to sustain in the market and this new theory, is founded on chaos and complexity theory. Organizations are being considered as self-regulating, whole system, open and emergent. Further, this also contrasts the metaphor of firm being regarded as machines to that as living systems.
Talking in reference with Tesco, it has strategically integrated human resource into their overall plans. Managers of the company is required to make use of aspects of human resource in their decision making process. Further, this has depicted high commitment to HR and has attempted to gain acceptance from all the workers and has provided basic as well as extended training to all the employees. The big picture of strategic direction of Tesco is discussed with all the staff members (Barrick nd Zimmerman, 2005). Through this, each and every employee understand their role as well as significance within the firm. Therefore, it can be said that they place a high value on their human capital.
TASK – 2 Recruitment and selection in Tesco
As per Meisinger, it is important on the part of human resource department to play a proactive role in the corporate strategy through integration of human resource structure throughput the whole operational functioning, rather than remaining reactive to the performance of organization. In addition to this, integration of corporate strategy and strategic human resource planning can be taken into account as a key input on the basics of employee resourcing decision making process (Gatewood and Field, 2000). According to Sundaray, this function includes all the necessary efforts of the management to accomplish the need of the employees in a long term perspectives. Strategic human resource practice of the organization helps in recruiting and selecting right people for the right job and right time. Thus, it can be attributed that role of HR planning is to help Tesco in recruiting and selecting the workers so as to respond the changes in a global environment. Such practices have been increasingly vital once; the competence and skills of workers became to be viewed as intangible resources unique, hard and rare to be replicated (Kleiman, 2000).
The most crucial human resource policy being carried out by Tesco is recruitment. For the purpose of establishing demand for the new workers and to appoint right people, the firm is generating workforce planning. One of the most important elements in workforce planning is determined job descriptions and person specification. Tesco makes use of these elements to base their job advertisement and are being sent to the applicants. Furthermore, the job description takes into account title of the job, description in regards with the roles and responsibilities, responsible person to whom they have to report (Kirkpatrick, 2006). Moreover, person specification takes into consideration features and skills being required to be possessed by applicants for a particular job.
When there is a new vacancy, TESCO first pay attention towards internal talent plan. This is a kind of a process that the firm seeks for their current workers who can be transferred at the same level or at other levels by the way of promotion. However, if HRM of Tesco does not find any suitable candidate within this plan, they make an advertisement internally on its private network for almost two weeks. On the other hand, for the external recruitment the company makes use of advertisement on their websites i.e.www.tescopcareers.com or boards in the stores. In addition to this, for store related jobs, applicants can appeal to company’s store with their resume or in other way they can register by Jobcenter plus. Moreover, the firm develops a list for waiting candidates and makes a call to them once there is vacancy with their roles. Nevertheless for the managerial levels, applicants generally apply via online means. Next, the selected candidates are being called up by HR managers of TESCO for an interview as the final stage of the process (Acquaah, 2004). Additionally, for more specialists’ jobs such as pharmacists, the company can make job advertisement externally by its websites and media such as television, radio, magazines, Google and many more.
Talking in regards with the selection process of Tesco, it initiates with checking the resume of the applicants. The firm searches for person specification through evaluation of CV that whether the candidate has appropriate skills or not. Those applicants who pass the screening stage are invited for an interview and if they successfully clear this stage they are then becomes eligible for assessment center that takes place in stores. The main motive of this stage is to offer consistent selection process. Applicants are allowed to take part in several exercises like problem solving, team working activities etc. Further, the candidates who are selected come forward for second round of interview. While selecting the workers, TESCO select people irrespective of their age, gender, disability and ethnicity. In other words, people of all ages are being selected at Tesco (Armstrong, 2006).
Recommendation for improving the process
A good amount is being invested by Tesco to recruit and select applicant for the right job. However, the investment will go to toss, if wrong people are being selected by the firm. This is the main reason why improvement in the process of recruitment and selection is required (Gilley, Eggland and Gilley, 2002). There are several things that human resource manager of TESCO needs to be considered while initiating the recruitment procedure. It is the duty of HR managers to see that everything is working according to the plan or not. This is possible only when the firm has good recruitment and selection procedure in place. However, there are many cases where Tesco lacks consistency and are not through with the candidate’s process of selection. It is important to improve the job description i.e. proper information must be provided in regards with the need of job and skills. Further, after selecting candidate, it is vital to have good training program in place so as to reap out better outcomes and results (Price, 2007).
TASK – 3 Approach towards human resource development
Earlier, human resource department performs the traditional role including recruitment, selection, training, promotion, placement of workers etc. Other than this, some of the authors have also stated that there are many traditional processes also involved like payment of wages, discipline, dismissal actions of employees, bureaucratic functions etc. But due to the rising globalization, constant evaluation and emergence of new technologies, changing expectation of customers have forced the firm to face end number of challenges for the purpose of ensuring its continuity in this volatile market (Tripathi, 2002). Consequently, companies started feeling the need of responding towards this altering environment. In the process of developing human resource strategy, an objective in association with external and internal environment is very critical.
Focusing in relation with the Human Resource Development, it is being defined as a framework that supports the employee to develop their personal as well as organizational goals. In other words, it is also being referred as a vast field of training and development being offered by the organizations for increasing the skills, knowledge, abilities, education and training of the workers. In most of the firms, the process related to human resource development initiates with the hiring of new employee and continues throughout the tenure of the employee with the firm. Further, there are many individuals who step up the company with just a basic level of skills and receive training so as to perform their duties effectively (Truss, 2001). However, there are many others who might have necessary competence being required for carrying out job, but lacks knowledge in relation with the particular firm. Consequently, the human resource development is being designed to provide workers necessary information being required to adapt the culture of the organization and to perform their job efficiently. In TESCO, human resource development is being viewed in the same manner that coach views his athletic team. Coach recruit players who have some skills and ability and strengthen those skills with the help of practice and make them better athletes. Similar to this, HR development also has a same goal to achieve. The main purpose of HR development of TESCO is to make their employees better, grow their skills, abilities, knowledge and competence (Alfes, K. and et.al. 2013).
For Tesco, training and development is being the top priority and thus, there is a high commitment training programs being developed within an organization like, graduate opportunities for their staff members, trainee management programs, apprenticeship in retail and many more. According to the retail director David Pott, training is being the key at Tesco and the principle part of success of the firm lies in the development of our leaders of the future. The trainee management program of Tesco is being developed to start the career of workers in 12 months ((Bennett and Ho, 2014). They initiate as a team leader in a local store and within the first six months they work up to a line manager. Furthermore, the next six months of the programs promotes the workers at management positions. The company has many graduates programs that help in developing skills and technical knowledge of the employees. In addition to this, the firm also provide personal development plan to their employees that significantly includes professional skills, presentation skills, communication and time management skills.
How human resource development can be improved in Tesco
There are numerous strategies that can be adopted by Tesco to train their staff members so as to maximize their productivity and achieve the organizational goals at the same time. The first and the foremost step are to evaluate the requirements of the firm and then forming strategies based on those needs (Garner, 2012). Further, the need analysis must encompass cost benefit as well as work analysis. For instance, if Tesco is planning to create new product and thus, it is vital for them to carry out need evaluation and form a new requirement list. Afterwards, they have to offer training to their workers accordingly. Other than this, the main aim of the HR department of the firm should be to utilize the need analysis for maximizing the benefits by training programs. The next stage is to develop a program that helps in combining the relationship of company with its employees by making use of relational model. The training strategies as well as techniques of TESCO should take into consideration on the job training, discussions and simulations. Training will support the workers in comprehending the details of the work that needs to be performed by them. Different kinds of training strategies can be implemented in Tesco such as technology based training program, stimulators, coaching, mentoring, on the job training, and group discussions to improve their human resource development process (Hendry, 2012).
TASK – 4 Evaluation of classical theories of motivation
Throwing light towards motivation, it is basically defined as a drive that leads people to work in an efficient manner. The employees are required to be motivated, this is because of the fact that the loyalty and the sincerity of the workers in relation with the work is dependent on the consequences that are promised with him or her (Armstrong and Taylor, 2014). Further, the benefit of both the leader and the worker is mutually exclusive that significantly leads to an effective team work and accomplishes the objectives of the firm.
Theory of motivation by Herzberg
This theory of hygiene is better known as two factor hygiene and motivation theory. It significantly explains that to work efficiently within the firm, an employee needs friendly and hygienic working environment. Some of the factors that encompass hygiene of the organization are policies and administration, working environment, salary, job security, status, interpersonal relations etc. All these factors do not take employees to the high level of satisfaction, however still they are very significant factors, as they might lead to dissatisfaction among the employees (Manzoor, 2012). Other than this, the factors the impact the motivation of the workers is explained in the second component of the theory and these are as follows:
Creating a sense of achievement is very important thing in the process of motivation. This can be performed by offering them challenging task, setting achievable targets and rewarding them against the accomplishment of goals.
Interest in the task:
Here, the group is required to show their cooperation and interest in the job and give them the feeling of association. The more the firm cooperates; more will be the morale of the workers (Wagner III and Hollenbeck, 2014).
It is also important reward that the employee expects in lieu of the work being provided by them. This can be performed by awarding the workers for their performance in various ceremonies.
Responsibility of the enlarged task:
By giving responsibility to the workers, a sense of achievement is developed and they feel motivated.
Growth and advancement to higher level:
If employees are promoted to higher level, they feel motivated and work efficiently to achieve success and growth (Wright, Coff and Moliterno, 2014).
McGregor’s theory of motivation
This theory is known as theory X and Y. As per this theory, different firms undergo different procedures to control the employees. There are some firms who make use of theory X, which is not productive approach to management style and generates poor outcomes (Bach, 2005). On the other hand, some takes into consideration theory Y, which is quite effective and helps the firm to perform better. Talking about theory X, it follows authoritative management style. Generally this theory is suitable for the workers who are unambitious and are being forced by the firm to perform by threatening them. On contrary, the manager following theory Y expects a reasonable amount of effort from the workers. In simple words, it is reward oriented approach. The employees are being motivated to perform by offering them reward. With this theory in practices, the employees are more committed towards their job and are self-directed (Caruth, Caruth and Pane, 2009).
Proposing a hybrid theory
The Combined effect of classical theories of motivation reveals out that motivation is a lively subject far from being fully explored. It is noted that each of the theory present title for further argument. Motivation from the point of view of analytics needs varied skills of leading people to get the work being performed instead of applying the theories that usually opens up to high level of disapprovals (Cook, 2004). Inspiring the workplace conditions so as to get the job being done by the workers to achieve the overall objectives of the business goes beyond the utilization of just a theory. A combines impact might be of influential approach when the situation of individual replies to a driven force in getting the task to be performed better. In the 20th century there is a paradigm shift from motivation by discipline and dictation. It is being promoted by Taylor’s scientific management towards a style of developing suitable corporate climate and address the requirement of individual workers (Manzini, 2002).
TASK – 5 Characteristics of effective leaders’ and relevant models justifying the analysis
Articulating in relation with the success and continuous growth of Tesco, the key role is being played by skills, knowledge, job and satisfaction of the workers. Leadership is nothing but creating a path for the people to contribute in making something happen extraordinary. Transformational leadership theory is applicable in Tesco. The firm is being recognized as the most successful retail firm in UK and this achievement was being proclaimed by appointment of Terry Leahy as the Chief Executive Officer. He also aspires to make his firm customer focused and to develop the employee of the firm (Singh and Mohanty, 2012). As per his pint of view, there are majorly four things that a leader should offer to his subordinate i.e. interesting job, favorable chance, respect, help and support.
In addition to this, the trait theory of leadership is also applicable in Tesco. According to the words of John Adair, leaders are required to have specific features, attributes and qualities so as to effectively carry out the duties. The trait theory is related with the physical and personality traits characteristics (Beardwell and et al. 2004). Further, it is being regarded as simple as a justification of the intricate leadership phenomenon. Some of the traits and features a leader should possess to be effective are being defined underneath:
For accomplishing the desired goals and objectives, it is significant on the part of leaders to create willingness in Tesco
The leaders and managers at the firm has command over quick decisions on demand (Berry, 2014).
The leaders are being composed under trying and testing conditions.
This is also considered as one of the most important quality a leader should possess. The leaders in Tesco have good ability to judge the things and situation.
Leadership Model:Bases of Power
This is one of the most important and popular models of leadership. It was being introduced by French and Raven in the year 1959. As per the author, there are basically, two group of power bases i.e. personal and position. Personal bases include expert and referent and position bases includes legitimate, coercive and power.
This power refers to the idea that power can be exercised in such a manner that creates fear among the employees.
This is being defined as an ability to control positive strengtheners within the firm (Park and Rainey, 2012)
Expert power stems out from the leader’s ownership of knowledge and skills.
It refers to the power that a leader gets from his position.
It stems from the respect, liking, feeling of the subordinates that the leader can offer psychological rewards and advancement.
The CEO of Tesco, Terry Leahy’s is one of the famous leaders and he has three powers that is legitimate, referent and expert power. The leader of the company has achieved the legitimate power as soon as he became the CEO of Tesco (Mintel, 2004). Seeking help through this power, Leahy was able to lead the people of the firm. In addition, he has expert power like knowledge, skills, abilities, decision making skills, communication etc. Further, Leahy is a famous leader in Tesco and thus, he has gain respect and attraction upon the followers too (Tesco PLC, 2018).
Consequently, it can be said that management of human capital is one of the significant role being played by human resource department. The main responsibility of HR department is not only to select and recruit right people for the right job; however, they are also responsible for training and developing their workers so that they can accomplish the overall objectives of the company.