IMPORTANCE OF HRM IN THE RETENTION OF EMPLOYEES IN A MNC – A CASE STUDY ON TESCO ASSIGNMENT SAMPLE
Introduction
In the contemporary age when the global competition amongst large multinational corporations is increasing at an alarming rate, the concept of employee retention has become a serious challenge for many corporations. Every organization is looking to hire the best workforce and for that providing employees a substantial amount of money as well along with providing opportunities for career growth and thus, the Human Resource Management (HRM) of companies are finding it difficult to retain its workforce. Therefore, in this study, the importance of HRM concerning the department’s approaches and strategies to retain employees in a Multinational Company (MNC) will be discussed critically with special emphasis on the case of Tesco.
Research questions
The research questions are as follows: –
- Why is retaining employees in a MNC important in the contemporary world?
- What role does HRM play in retaining employees within an organization?
- What types of strategies do HRM follow to ensure the retainment of employees in an MNC?
Research aims
The aim of the research is to comprehend the importance of retaining the most skilful workforce for a large and global MNC and also to evaluate the benefit it will provide regarding the global competition. Additionally, the role HRM plays and its importance concerning the attainment of that goal will also be discussed in the research.
Research objectives
- To understand the importance of employee retention in a MNC
- To evaluate the significant role that HRM plays in assuring the attainment of employee retention
- To analyse the approaches adopted by HRM to ensure the same
- To determine if employee retention is beneficial for MNCs to sustain in the global competition
Justification of the study
The retention of employees for MNCs has become quite an issue given the surge in such companies and all the corporations trying to employ the best workforce. Thereafter, the HRM department of many organizations are also coming up with strategies to retain a workforce as well and Tesco being a multinational retailer also faces the similar challenge (Tescoplc.com. 2022). Therefore, it has become extremely imperative to evaluate the importance of HRM and the strategies the department may adopt in order to make sure that Tesco is being able to retain its employees, since the failure of that puts a business in a position that is quite negative to sustain in a global competitive environment. Retention is the practice of physically keeping the employees of an organization as it is one of the most crucial factors that ensure the success of an organization and in a global environment retention of employees has become quite a challenge for organizations as well (Aguenza and Som, 2018).
Research limitations
One of the limitations of the study is that it will only talk about the importance of HRM concerning the retention of employees in Tesco, however, there are several other aspects as well that are equally imperative for retaining workforce for an organization. Along with the importance of HRM, the significance of effective leadership is also relevant when it comes to the concept of employee retention for an organization as well. Leadership is able to make employees leave or stay within an organization and henceforth it has become one of the most important aspects that influence the retention of employees (Mwita and Tefurukwa, 2018). Therefore, it may be implied that besides HRM, the leadership aspect of Tesco also needed to be given equal attention to avoid such limitations of the study.
Relevant themes
The relevant theme for this study is the importance of HRM or in order to simplify it may be stated that the study will govern the different motivational factors along with organizational culture that are helpful for facilitating the department of HRM to retain a workforce in an organization. The findings of a study has shown that motivation along with the culture of an organization has a significant and affirmative impact on the performance of employees, although it did not have any effect on employee’s job satisfaction, which the aspects of leadership did effectively (Paais and Pattiruhu, 2020). Henceforth, it may imply that the concept of leadership is also a relevant theme concerning the given study as the significant aspect also has quite an impact on employee retention within organizations. Leaders and the individual’s capabilities in establishing an environment of retention has become a crucial aspect regarding people’s decision to stay or leave an organization (Rao et al., 2018).
Data collection
The relevant data for this given study will be collected through the means of primary data collection method and with the help of interviews in order to acquire the most authentic as well as reliable data. Three individuals from different departments of Tesco will be selected for the interview and open-ended questions will be asked so that there is a scope for the interviewees to state any relevant aspects or opinion that the participants may have concerning the subject matter. Collecting data with the help of interviews by involving participants is the default characteristic of several qualitative studies as interviews provide the most straightforward direction towards the procurement of enriched data given a specific subject matter (Barrett and Twycross, 2018).
Direction regarding future research
In order to acquire a complete idea regarding the aspects that influence employee retention in an organization, the aspect of leadership will also need to be discussed in the future. It has been proven that leaders are significantly responsible for making employees stay or drive the individuals away and along with that the internal environment and culture of an organization will also have to be emphasized.
Concussion
Finally, it may be concluded that the concept of employee retention is an extremely imperative aspect since it is highly essential for enabling organizations to attain success within a competitive environment. However, as the competition is rising within the corporate world most of the enterprises, including Tesco, is experiencing difficulties in retaining its workforce and for that the importance of HRM has risen significantly. HRM is in charge of hiring, training and pertaining the workforce of an organization and in order to mitigate the challenges of employee retention in MNC such as Tesco, it has become imperative to adopt various approaches as well.
References
Aguenza, B.B. and Som, A.P.M., 2018. Motivational factors of employee retention and engagement in organizations. International Journal of Advances in Agriculture Sciences.
Barrett, D. and Twycross, A., 2018. Data collection in qualitative research. Evidence-Based Nursing, 21(3), pp.63-64.
Mwita, K.M. and Tefurukwa, O., 2018. The influence of leadership on employee retention in Tanzania commercial banks. Leadership, 8(2), pp.32-48.
Paais, M. and Pattiruhu, J.R., 2020. Effect of motivation, leadership, and organizational culture on satisfaction and employee performance. The Journal of Asian Finance, Economics, and Business, 7(8), pp.577-588.
Rao, D.K.S., Sahyaja, C., Akhil, P. and Narasimha, N.L., 2018. Role of Leadership on Employee Retention–A study on Corporate Hospitals. International Journal of Mechanical Engineering and Technology, 9(2), pp.161-172.
Tescoplc.com. 2022. [online] Available at: <https://www.tescoplc.com/about/> [Accessed 21 March 2022].
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