7024MHR Assignment Sample
Module code and Title: 7024MHR Assignment Sample
Introduction
The aspects of human resource management is proving to be an essential component for firm competitiveness as it plays a key role in building workforce capital. The selected company is Tesco. The sector for this research is retail sector. The report will also provide recommendations for Tesco in improving HR practices.
Key HR challenges that Tesco should prepare for
One of the key HR challenges that might adversely affect Tesco is the high employee turnover rate. It is evidenced by the fact that the employee turnover rate at Tesco will plummet by 36% (The, 2014). The low talent retention rate will prevail because the HR at Tesco is cutting down on wages and laying off employee with prior notice, both, of these factors, are making the employees anxious and influencing them to look for opportunities in other firms. It is supported by the fact that employees are opting to leave Tesco as Tesco is expected to lay off 300 head office employees by 2023 and Tesco is also planning to reduce the wages by 10% (Butler, 2022; Butler, 2021).
Therefore, Tesco should be prepared to mitigate high employee turnover rate. The challenge is extremely significant for the retail sector as the sector operations depends on intensive human capital and output from retail sector is significantly decreased by high employee turnover. In the findings of Ton and Huckman (2016), it is supported that high employee turnover share a significant association with profit margin of retail industry as one standard deviation at full time turnover leads to decrease in profit margin of the retail sector by 0.2%. Therefore, high employee turnover rate is significantly relevant to the industry as it could adversely affect the financial performance of the retail sector.
Another key aspect that might prove to be challenging for Tesco is the lack of workforce engagement due to motivation issues as 40% of the employees are voicing their grievances against the absence of motivation and employee engagement approaches. The issue emerges because the employees are highly motivated with the establishment of work satisfaction and HR team at Tesco has failed to provide safe working environment for the employees, which, in turn leads to the drop in job motivation.
It is evidenced by the fact that the Tesco employees at Hertfordshire store are suffering from demoralization due to the lack of HR’s liability in securing the health and safety standards (Cunningham, 2020). Furthemore, the demoralized employees at Tesco are expected to grow with the onset of Covid 19 as HR plans to incur on inadvertent lay-off policies to accommodate the pandemic’s after-effect in terms of financial crises. Therefore, the Tesco should be prepared to address low employee motivation.
Most important area should Tesco be ready for
One of the major areas that that Tesco should prepare to mitigate is the reducing workforce population. It is because reducing workforce population might also lead to the loss of high performing, talented employees and might mar the talent retention rate simultaneously. This loss of talented employees might adversely affect the firm performance as Tesco will lose the capacity of putting forward innovative ideas and retaining the brand perception of being one of the most innovative retail firms in UK.
It is evidenced by the fact Sainsbury’s is gaining a competitive edge over Tesco in terms of innovative solutions due to the prevalence of talent retention (Xiao et al., 2021). The prevalence of such issue is related to lack of proper HR policies in terms of decreasing gender pay gap, establishing wage hikes with legal forms and incentives. It is supported by the fact that the Tesco has been asked to pay out £10bn pounds after the increasing gender pay gap by £3/hr (3.1%) after the failed HR policies led to increase of the gender gap instead of reducing it (Munbodh, 2021).
Furthermore, the HR policy of annual pay rise at Tesco has failed to live up to the expectations of pay increase up to 3.1% (Topham, 2016). In the findings of Kodithuwakku et al. (2018), it is supported that the 45% of the variance in the loss of workforce is driven by lack of extensive HR policies. Therefore, the reducing workforce population emerges as one of the critical challenge for the HR team at Tesco.
The reduced workforce population might constrain the operational performance of Tesco. It is because the services in Tesco revolves the store management, customer interaction and backdoor activities requires the establishment of high performing workforce. Similar evidences can be observed in the works of Madhani (2021) as the author suggest that the declining population of workforce capital has an adverse influence on the effective operation of the retail firms.
Furthermore, the operational productivity of Tesco has fallen significantly with the recent drop in labour capital as the firm has faced an operational loss of £900 million (Eley, 2021). Therefore, this decrease in performance serves as the rationale for identifying this area as the most critical challenge.
One of the key existing HR challenges at Tesco is the lack of cultural integration. It is because the cross-cultural exchange between the employees has deteriorated significantly due to the HR department’s liability of applying culturally inclusive practices. It is supported by the fact Tesco has faced cultural integration between the Asian and UK employees due to the lack of proper inclusive practices through the employee engagement approaches (Felsted, 2021). Therefore, it is analysed that the HR challenges at Tesco have negative impact on operational performance at Tesco.
In 2022, employee wellbeing will continue to be a top HR concern. Following the significant disruptions of 2020, organisations started to understand the need for specialised benefit plans to address the most urgent concerns of specific employees. Businesses are introducing better, better comprehensive benefits, such as those for child and senior care, as well as increasing covering for mental health care. However, Tesco has failed to deliver on such factors as several employees have failed to maintain mental health.
Recommendations
It is recommended that Tesco should provide reward incentive program for the employees as it would make them feel that their contribution is being valued and, in turn, reduce the chance of increasing employee turnover rate. It is also recommended that Tesco should include employee engagement practices to enhance organizational culture.
| What | How | When |
| Provide reward incentive program | Conducting performance evaluation. Awarding the best performing employees with monetary rewards | On a monthly basis |
| Inclusion of employee engagement practices | Enacting role plays sessions and organizing cross cultural training | On a monthly basis |
Conclusion
The report has been exemplary in analyzing the key challenges for HR in the near future. From the report, it is concluded that the high employee turnover and absence of workforce management are the two key HR challenges that might adversely affect Tesco in near future. The current HR challenges at Tesco has also been identified in the report.
Part B: HR
Abstract
In the previous part of this report we have focused on the company TESCO and discussed about the key HR challenges that is faced by the company and the important areas that TESCO should be ready for. In this part of the assignment we would further discuss in detail about certain particular challenges that the company is facing and could it solve those problems.
Introduction
Human resources, or HR, is a key role in every business. HR is in charge of a variety of activities, including employee recruitment and hiring, payroll and benefits management, training and development programmes administration, and policy enforcement.
One of HR’s primary responsibilities is to seek and hire people who are a good match for the organisation. This includes publishing job advertisements, assessing resumes, conducting interviews, and making hiring choices. HR is also in charge of ensuring that the organisation abides by all applicable employment laws, such as those governing equal employment opportunity, workplace safety, and wage and hour rules.
HR is also responsible for managing the company’s payroll and benefits programmes. This involves calculating employee compensation, providing pay stubs, and maintaining the company’s benefits packages, which include health insurance, retirement programmes, and paid time off. HR is also in charge of controlling employee time and attendance, as well as ensuring that employees are paid correctly and on time.
Recruitment and Selection
A comprehensive human resource system comprises mechanisms for discovering and recruiting job candidates with the essential skills and expertise to thrive in the firm. Posting job adverts, holding interviews, and reviewing candidates’ credentials and fit with the corporate culture may all be part of the process.
As stated by Rosedi & Mat Jaafar (2018), HR is responsible for training and development in addition to administrative chores. This might involve providing orientation and on-boarding programmes for new workers, continuous training and development opportunities to assist employees enhance their abilities and advance their careers and providing support and direction to employees who want to take on new positions or responsibilities within the organisation (Ajibola, 2022).
Finally, HR is in charge of implementing corporate policies and ensuring that all workers obey them. This can range from workplace safety standards and harassment and discrimination policies to policies limiting the use of business resources like as email and internet access. Human resources are also frequently in charge of researching and resolving any concerns or disagreements that may occur among employees.
Overall, human resources are critical to the operation of every business. HR plays a critical role in assisting firms in achieving their goals and objectives by managing the company’s personnel and ensuring that employees are recruited, trained, and supported.
A solid human resources (HR) system is required for a firm like Tesco to function properly. Human resources are in charge of managing a company’s personnel, and an efficient HR system ensures that the organisation has the proper amount of people with the essential skills and expertise to accomplish its business objectives (Rosnizam et al. 2020).
Training and Development
A good human resources system offers programmes and chances for employees to develop new skills and grow in their careers. This might include both internal training programmes and chances for staff to pursue outside training and education (Monte, 2021).
Performance Management
A good human resource management system includes systems for assessing and monitoring employee performance, such as creating goals and objectives, providing frequent feedback, and performing performance evaluations. This ensures that staff are fulfilling the company’s goals and identifies areas where they may require more assistance or growth.
Compensation and Benefits
A comprehensive human resources system involves policies and procedures for properly rewarding employees and providing benefits that promote their health, well-being, and financial stability. Setting pay scales, providing bonuses and incentives, and providing benefits like as health insurance, retirement plans, and paid time off are all examples of this (Moore & Brannen, 2018).
Employee Relations
A good HR system contains mechanisms for dealing with employee problems and difficulties, as well as building a healthy and inclusive work environment. This may entail putting in place rules and initiatives to combat discrimination and harassment, as well as supporting employees’ mental and physical health and fostering diversity and inclusion (Fadeyi, 2020).
In a firm like Tesco, the problem-solving part of HR is crucial to HR management. Tesco HR specialists are in charge of detecting and managing a wide variety of issues that may impact the organisation and its employees. Human resource experts are in charge of ensuring that employees are treated fairly and with respect. Bullying, discrimination, harassment, and other types of unjust treatment may all be addressed.
To handle these difficulties, HR experts may need to conduct investigations, arbitrate conflicts, and take necessary action. HR experts play an important role in assisting managers and workers in setting and achieving performance objectives. This might include training and assistance, performance reviews, and developing measures to help staff improve their performance. HR specialists may also be required to assist managers in dealing with performance difficulties and taking appropriate disciplinary action when necessary (Alam & Raut-Roy, 2019).
Human resource specialists are in charge of discovering and recruiting outstanding personnel for the firm. This may entail creating and implementing recruiting strategies, conducting interviews, and collaborating with management to find the best applicants for available jobs. HR personnel may also need to give training and development opportunities to assist employees grow in their careers and enhance their abilities. HR personnel are frequently involved in attempts to enhance the organization’s overall effectiveness.
This may entail performing research, evaluating data, and putting new rules and procedures in place. To identify and solve organisational issues and possibilities for growth, HR professionals may need to collaborate closely with other departments. At Tesco, the problem-solving part of HR entails a wide range of tasks and responsibilities.
HR specialists must be capable of detecting and addressing a wide range of issues that may affect the organisation and its personnel. They must be able to collaborate successfully with other departments and stakeholders, as well as design and implement effective solutions to the organization’s issues and possibilities (Salathiyan & Sunny, 2022).
Future HR Challenges of Tesco
Flexible Employment
The need to find a balance between offering flexibility for employees and maintaining productivity levels is one potential future difficulty that Tesco’s HR department may confront with the topic of flexible employment. As the use of flexible employment arrangements, such as part-time and remote work, becomes more common, HR professionals may find it increasingly difficult to ensure that employees have the support they need to be productive while also giving them the flexibility to manage their personal responsibilities (Chen, 2021).
Another possible problem is the requirement to offer proper training and development opportunities for staff working in flexible work arrangements. Because these individuals may not be in the office as frequently as full-time employees, access to training and development opportunities may be more challenging for them. This might result in discontent and perhaps high turnover rates if flexible workers are unable to develop their careers as swiftly as full-time workers (Ajibola, 2022).
The necessity to address possible concerns of inequality and discrimination associated to flexible work is a third hurdle that Tesco’s HR department may encounter. Employees who can take use of flexible arrangements, such as working from home, may be viewed as more dedicated or committed to their careers than those who cannot. Employees who are unable to take advantage of flexible arrangements may face unfair treatment or discrimination as a result.
Tesco’s HR department has both possibilities and problems as the company’s usage of flexible employment arrangements grows. The HR department can assist to ensure that Tesco remains an appealing and supportive place to work for all workers, regardless of their employment structure, by carefully handling these problems.
Tesco, like many other businesses, may confront difficulties with flexible employment and high staff turnover rates. Managing a workforce with a variety of employment arrangements, such as part-time, full-time, temporary, and contract workers, is one possible difficulty. This can complicate scheduling, communication, and ensuring that all employees are treated equally and consistently. Managers may sometimes find it challenging to give the same degree of support and development opportunities to employees with varied employment arrangements (Rosnizam et al. 2020).
Another concern is the possible impact on morale and team cohesiveness when personnel turnover is significant. When workers are continually coming and departing, it can be difficult for teams to create strong connections and trust, which can have an impact on the organization’s overall productivity and performance. Because new employees may not have the same depth of understanding of the company’s operations and culture, high turnover can lead to a loss of institutional knowledge and expertise (Utama et al. 2020).
Furthermore, flexible employment and high turnover rates can make succession planning and career development challenging for workers. It might be difficult for employees who are not in long-term, secure employment relationships to plan for the future and explore prospects for promotion within the organisation. This can lead to a loss of motivation and engagement among employees, affecting the company’s overall success (Shams, Galati, Vukovic & Festa, 2022).
Tesco may need to create initiatives to facilitate flexible work arrangements and manage staff turnover in order to meet these difficulties. This might include clear communication and support for workers with varied working arrangements, creating programmes to develop and retain talent, and assessing and enhancing the company’s rules and procedures regarding flexible employment and turnover on a regular basis (Griffiths, 2020).
Managing flexible employment and high staff turnover rates may be complicated and difficult for any company. Tesco, on the other hand, may mitigate the negative impact of these variables and promote the growth and development of its personnel by taking a proactive and deliberate approach.
Solving Challenges
Tesco’s Human Resource Management (HRM) initiatives for mitigating the issues of flexible employment and high employee turnover rates include the following.
- Creating and implementing a complete staff retention programme that includes frequent employee contact as well as chances for professional growth and career progression. By making employees feel appreciated and interested in their work, this can assist lower turnover rates (Dekimpe, 2020).
- In order to recruit and retain great professionals, provide competitive remuneration and benefit packages. Competitive salaries, bonuses, and other financial incentives, as well as a complete benefits package that includes healthcare, retirement plans, and other amenities, might be part of this.
- Providing workers with frequent training and development opportunities to help them improve the skills and knowledge required to thrive in their positions. On-the-job training, mentorship, and other learning opportunities are examples of this.
- Implementing a flexible work schedule that enables people to combine their professional and personal life. Flexible start and finish hours, telecommuting, and part-time work are examples of such alternatives (Alam & Raut-Roy, 2019).
- Creating a healthy work culture that encourages employee cooperation, communication, and a feeling of community. Regular team-building events, open-door policies, and chances for workers to offer input and comment on corporate rules and procedures can help achieve this.
- Investing in technology and other tools that will enable remote and flexible work arrangements. This might involve giving employees with the tools and software they need to work remotely, as well as developing policies and processes that promote successful cooperation and communication among team members.
- Creating a complete on-boarding programme for new workers to assist them quickly and successfully adjust to the firm and their positions. Orientation sessions, training, and continuing support and mentorship may all be included to ensure that new workers have the tools and resources they need to succeed.
Tesco can better manage the difficulties of flexible employment and high employee turnover rates by employing these HRM methods. These tactics can assist in attracting and retaining top people, fostering employee engagement and growth, and fostering a healthy work culture that encourages cooperation and creativity. As a result, Tesco can continue to develop and expand as a company (Chehbi-Gamoura, Derrouiche, Damand & Barth, 2020).
Tesco, like any other organisation, may experience personnel challenges such as low morale, a high turnover rate, and a lack of desire. The organisation might adopt and use several HR theories to handle these difficulties. One such theory is the Maslow’s theory of hierarchy of needs. According to this idea, humans have a hierarchy of wants that must be met in order for them to realise their maximum potential. These needs include physiological, safety, belongingness and love, esteem, and self-actualization, according to Maslow. Tesco can build a work environment that meets the requirements of its workers and inspires them to perform at their best by recognising their needs.
Data Analytics
Implementing data analytics in a business can be a difficult task. When it comes to employing data analytics to enhance operations, businesses may confront a number of significant hurdles (Mariani & Wamba, 2020).
One of the most significant issues is the lack of high-quality data. Companies must have access to accurate and trustworthy data in order for data analytics to be effective. However, this might be difficult to gather, particularly if the firm has siloed data systems or if data is not collected and kept appropriately. Furthermore, the data may be inadequate or old, limiting its value.
Then there’s the issue of data integration. In order for data analytics to be effective, data from diverse sources and systems must be connected. This can be a time-consuming and difficult operation, particularly if the business has a vast and sophisticated data architecture.
Third, firms may have difficulties in integrating data analytics solutions. This might involve challenges with picking the appropriate technology and software, as well as teaching personnel on how to properly utilise these tools. Furthermore, there may be organisational resistance to employing data analytics, since certain employees may be unwilling to accept new technology or modify their working habits (Chehbi-Gamoura, Derrouiche, Damand & Barth, 2020).
The fourth challenge is data privacy and security. Data breaches and other security issues are becoming increasingly common as businesses gather and utilise more data. To secure sensitive data and prevent unwanted access, organisations must implement sophisticated security processes.
Fifth, there is the issue of data management and interpretation. Even when all of the data has been collected and analysed, it may be overwhelming and difficult to comprehend. Employees with the necessary skills and knowledge are required by businesses to manage and analyse data, as well as interpret the results in a way that is beneficial for decision making.
Implementing data analytics in a company may be a difficult and time-consuming task. Companies must be prepared to overcome these hurdles in order to use data analytics successfully to enhance their operations and make better decisions.
Solving Challenges
Tesco, like many other businesses, may confront a variety of problems with data analytics and human resource management (HRM). Some of these challenges might include a lack of skilled HR professionals to utilise data analytics technologies effectively, concerns about data privacy and security, and the possibility of bias in data analysis and interpretation. Tesco might adopt a variety of HRM solutions to solve these concerns (Mariani & Wamba, 2020).
In order to begin, Tesco might engage in training and development programmes for its human resources workers to guarantee they have the skills and expertise required to properly use data analytics technologies. Training on particular data analytics software and methodologies, as well as more general training on how to analyse and use data to support HR decisions, might be included.
Second, Tesco may implement strict data privacy and security rules to satisfy employee worries about the security of their personal information. This might include things like constantly upgrading security software and protocols, creating rigorous access restrictions for data analytics tools, and teaching personnel on data privacy and security best practises on a regular basis.
Third, Tesco might take measures to reduce the possibility of bias in its data analytics procedures. Implementing measures for identifying and resolving prejudice, such as frequent audits and reviews of data analytics procedures, as well as diversity and inclusion training for HR professionals and management, might fall under this category.
Furthermore, Tesco may want to think about introducing HR solutions that leverage artificial intelligence (AI) and advanced analytics to help with data analysis and decision-making. These technologies can assist in automating and streamlining numerous HR operations, including as hiring, performance management, and pay, while also eliminating the possibility of human bias (Chehbi-Gamoura, Derrouiche, Damand & Barth, 2020).
Overall, Tesco may seek to successfully handle the challenges that can develop when employing data analytics in HR by using these and other HRM techniques. Tesco can guarantee that its data analytics operations are successful, efficient, and fair by investing in training and development, establishing robust data protection and security measures, and taking efforts to eliminate possible bias.
Recommendations
Tesco, like many other firms, may suffer personnel turnover and data analysis issues. To address these concerns, the organization may consider employing a variety of human resource management (HRM) solutions.
One potential technique for reducing staff turnover at Tesco may be to focus on enhancing employee job satisfaction and engagement. This might include conducting frequent surveys to assess employees’ happiness with their job duties and working circumstances, and then implementing adjustments that address their complaints. Furthermore, Tesco might establish programmes and initiatives that aid in employee engagement and motivation, such as providing chances for professional growth and training, or developing recognition and reward systems for high-performing staff.
Tesco might also strengthen its hiring and on-boarding processes in order to reduce staff turnover. Implementing thorough background checks and screening processes to ensure that the company hires the right people for the job, as well as providing comprehensive training and support to new employees to help them get up to speed quickly and become productive members of the team, could be part of this.
Tesco can assist to decrease employee turnover by investing in its hiring and on-boarding procedures, ensuring that it is bringing on board employees who are well-suited to the firm and its culture, and who are more likely to stay with the organization in the long run.
Tesco might benefit from having a comprehensive data management and analytics system in terms of data analysis. Implementing tools and methods for collecting, storing, and evaluating data from diverse sources, such as consumer feedback, sales numbers, and staff performance data, might be part of this. Tesco may use this information to make data-driven choices about how to enhance its operations and employee engagement by gaining insights into the reasons influencing staff turnover and other critical business indicators.
Conclusion
Hence, based on above discussion it can be concluded that Tesco might adopt a variety of HRM solutions to address its challenges with staff turnover and data analysis. The organisation may enhance its performance and retain its best people by concentrating on boosting work happiness and engagement, creating effective hiring and on-boarding procedures, and implementing a comprehensive data management and analytics system.
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