Tesco assignment - distinction PDF

Preview

Summary

distinction...

Description

Max Lampey

Tesco’s Recruitment and Selection process Synopsis of Tesco: Jack Edward Cohen, born on the 6th October 1898, Son of a Polish Jewish tailor, sold groceries in the markets of London’s east end. He founded the company Tesco’s in 1919. Cohen purchased a shipment of tea from Thomas Edward Stockwell, and in 1924 the Tesco’s brand first appeared when he made labels using the initials of the supplier’s name (TES), and the first two letters of his surname (CO), forming the word TESCO. The First Tesco’s store opened in 1931 in Burnt Oak, Barnet. His business expanded rapidly, and by 1939 he had over 100 Tesco stores across the country. When Tesco’s opened a store in Leicester in 1961, they entered the Guinness Book of records as the largest store to be opened in Europe. Since the 1960’s, Tesco has diversified into areas such as the retailing of books, clothing, electronics, furniture, toys, software, financial services, telecoms and internet services. The company even opened its own petrol station in 1974. Tesco's growth over the last two or three decades has involved a transformation of its strategy and image. Its initial success was based on the "Pile it high, sell it cheap" approach of the founder Jack Cohen. However, in the 1990’s Tesco repositioned itself from being a downmarket high-volume, low-cost retailer, in an attempt to attract a range of social groups, and increase its target audience. They done this with its low-cost “Tesco value” range (launched in 1993) and its premium “Tesco Finest” range (launched in 1998). Since the early 1990’s Tesco has expanded globally, to become an international company, with operations in 11 other countries in the world. The company is the largest retailer in the Uk and has wide markets in

Europe and Asia. As of 2018 the company continues to see growth in these countries, even though the company pulled out of the US in 2013. With evidence showing that Tesco’s is the third largest retailer in the world, measured by gross revenue, and the ninth largest in the world also measured by revenues.

Tesco is listed on the London stock exchange and is a constituent of the FTSE 100 index, this is a share index of the 100 companies listed on the London stock exchange with the highest market capitalisation, It is seen as a gauge of prosperity for businesses regulated by UK company law. It had a market capitalisation of approximately £18.1 billion as of 22nd April 2015, the 28th largest of any company with a primary listing on the London stock exchange. As of August 2015, Tesco is the UK grocery market leader with 28.4% market share, followed by competitors ASDA and Sainsburys, each of which has just under 17% market share. This indicates that Tesco has a much larger market share then its competitors. Tesco mainly used strategies to build customer loyalty. It reached the £billion-pound turnover in 1979 and, it became the first UK business to reach £2 billion pound and became the largest retailer in UK. Tesco’s has become the leading grocery retailer in the United Kingdom, and the company is classed as one of the ‘big four’ supermarkets along with Asda, Sainsburys and Morrisons. The grocery market leader operates around 2,318 stores and employs 326,000 people, employing 11,000 employees every year. Tesco is the biggest private sector employer in the UK and offer a competitive package of pay and benefits for all jobs, whether as assistants or managers in store and depots. This evidentially connotes that Tesco’s is a large business that employs a vast number of employees, and has thousands of stores open internationally. Tesco is a PLC (public limited company), meaning the company has limited liability. The company is allowed to offer its shares of stock to the general public. The buyers of the Tesco shares would have limited liability, meaning they cannot be held responsible for any business losses in excess of the amount they paid for the shares. This means that if Tesco went bankrupt they would only lose what they had invested in the business unlike a sole trader were all their belongings could be lost if they went bankrupt. However, this makes Tesco’s susceptible to hostile takeovers if anyone can obtain 51% of the shares in the company. Tesco’s belong to the tertiary sector because it does make

products as such but it mainly provides a valuable service that consumers and other businesses are prepared to pay for and use. The main purpose of Tesco is to make profit and expand their business. Tesco adopts its strategy with a core purpose 'to create value for customers to earn their lifetime loyalty’. This is expressed as two key values which Tesco prides itself on following, No one tries harder for customers and Treat people as we like to be treated. Tesco positions all its resources with a purpose to satisfy this strategy while achieving its organisational goals. Tesco was built with a simple mission – to be the champion for customers, helping them to enjoy a better quality of life and an easier way of living. Customers want great products at great value which they can buy easily, and Tesco’s believe its their job to deliver this in the right way for them. This is why ‘serving shoppers a little better every day’ (one of Tesco’s catchy slogans) is their core purpose. As a business Tesco’s serving customers is at the heart of everything they do – from colleagues in their stores to those of them in supporting roles. In the UK, Tesco serve some 66 shoppers every second, so its their goal to ensure every one of those customers experience just a little better service on each visit.

Workforce planning:  Workforce planning is a process of analysing the current workforce, determining future workforce needs, identifying the gap between the present and the future, and implementing solutions so that an organisation can accomplish its missions, goals and strategic plan. It also determines what mix of experience, knowledge and skills are required, and it sequences steps to get the correct number of people in the right place at the right time.  Advantages and limitations of workforce planning The advantages of workforce planning include, helping the business clearly lay down objectives of the organisation, planning can also minimise future uncertainties by basing its decision on past experiences and present situations. Another advantage of planning is better utilization of resources of the business. However, there are also limitations of workforce planning. If reliable facts and figures are not supplied the value of workforce planning is lost. The process is also time consuming, meaning if an urgent solution is needed then the business cannot wait for the planning process to complete. The

process can also be expensive therefore, the cost of planning should not be in excess of its contribution, meaning wise managerial judgement is necessary. Tesco uses a workforce planning table to establish the likely demand for new staff. This allows Tesco sufficient time and flexibility to meet its demands for staff and allows the company to meet its strategic objectives, for example, to open new stores and maintain customer service standards. It is vital for a company like Tesco to plan ahead, because the company is growing, therefore Tesco needs to recruit on a regular basis for both the food and non-food parts of the business. Positions become available because, jobs are created as the company opens new stores in the UK and expands internationally. Vacancies become available as employees leave the company, when they retire or resign. They also become available when employees get promotions to other positions within Tesco. In 2008/09, Tesco calculates that to support its business growth there will be a demand for around 4,000 new mangers. This planning process runs each year, dating from the last week in February. There are quarterly reviews in May, August and November, this is so Tesco can adjust staffing levels and recruit where necessary. This also allows Tesco the sufficient time and Flexibility to meet its demands for staff and allows the company to meet its strategic objectives. Tesco is very good at retaining its staff, as it recognises the importance of motivating its staff to progress their careers with the company. This is a major influential attribute, as it shows that Tesco appreciates its staff and, wants their employees to succeed and achieve their personal career objectives. This is also beneficial to Tesco as they seek to fill many vacancies from within the company. Tesco practices what is calls ‘Talent planning’. This encourages people to work their way through and up the organisation, through an annual appraisal scheme. Appraisal schemes measure employee performance against previouslyagreed goals. Upon reviewing this measure Tesco will then be able to set future objectives and give staff guidance on their developmental and training needs. They also help managers identify both achievements and shortfalls in performance, and give a framework to guide future improvements. Employees identify roles in which they would like to develop their careers with Tesco. Their manager sets out the technical skills, competencies and behaviours necessary for these roles, what training this will require and how long it will take the

person to be ready to do the job. This helps Tesco to achieve its business objectives and employees to achieve their personal and career objectives.

Recruitment and selection process of Tesco’s:  Recruiting refers to the overall process of identifying, attracting, screening, shortlisting and interviewing suitable candidates for a job, either permanent or temporary, within an organisation. Tesco aims to ensure all roles work together to drive its business objectives. It needs to ensure it has the right number of people in the right jobs at the right time. To do this, it has structured process for recruitment and selection to attract applicants for both managerial and operational roles. The diagram below is a representation of Tesco’s recruitment method. Vacancies advertised on Tesco website and other media, such as national press Screening of applicant’s CVs to find best fit with Tesco

Successful candidates invited for interview

Successful candidates from screening attend assessment centre

Unsuccessful candidates sent letter

Successful candidates invited to second interview

Successful candidates sent offer letter and contract

This diagram connotes the clear and simple way the company recruits. It tells us that Tesco starts the process by firstly creating an advert of the vacancy available on the Tesco website, or other forms of social

media. Secondly the CVs of the applicants who applied for the position are screened to pick out the candidates who are best fit for the role and with the Tesco company, following on from this the candidates are then invited for an interview. Upon a successful interview they will then attend an assessment centre, those who were unsuccessful will be sent a letter with best wishes. After the candidates has attended the assessment centre the successful candidates will be invited to a second interview, and if this interview is a success the candidates will be sent an offer letter and a contract.

 Reasons why Tesco may need to recruit Short staffed: If Tesco is short staffed this will make the current employees unhappy as they may be over worked and tired, making unhappy working conditions, therefore a business will hire more staff to ease the work load of previous employees and also improve working conditions and also speed up the efficiency at which the business works. Retiring: If current employees of Tesco’s begin to retire, this means they will have a vacancy available and if they don’t fill it quickly the productivity of the company may decrease as work load is not being completed. They recruit to maintain the productivity and growth of the company. Internal recruitment (promotion): Internal recruitment promotes loyalty and can even improve employee morale as it serves as a reward for existing employees. Matching internal candidates with the roles that fit their personality and skills means that they stay longer at the company and increases employee retention. Turnover of staff: Main causes of employee turnover are a lack of growth and progression, being overworked, lack of feedback and recognition, little opportunity for decision making, invest in your employees, reward and compensate your employees, perfect your section process.

Tesco might need to recruit staff due to a store being short staffed. If one of Tesco’s stores is short staffed it will result in the current employees being unhappy as they may be over worked and tired, making unhappy working conditions, therefore the company will recruit more staff for the shot staffed store to ensure that the work load of current employees is eased. This will improve the working conditions and also to improve the efficiency at which the store runs at. A second reason for Tesco’s needing to recruit might be if some of their current staff retire. If current employees of a business begin to retire, this means the business will have a vacancy available and if they don’t fill it quickly the productivity of the company may decrease. This will result in other employees being offloaded with more work, and therefore may be unable to complete the work load. As a result, Tesco’s would recruit more staff to maintain productivity, efficiency and growth of the company.

Factors affecting recruitment process

External factors

Internal factors  Supply and demand  factors  Employment rate   Labour market  condition   Reservation system  Market competition  Information system  Socio Economic factors 

Company pay’s package Work type Organisation culture Career planning Company’s size Company’s product Company’s growth rate Cost of recruitment

Employment laws Employment law exists to regulate the relationship between businesses and their employees. By complying with relevant legislation, both employers and their staff members can ensure that their hiring processes, dismissal processes, and their workplace as a whole, are fair for every individual.

 Examples of different employment laws: Employment Rights Act 1996: One of the most inclusive pieces of employment law legislation, covering a variety of topics such as employment contracts, unfair dismissal, family-friendly leave, and redundancy. National Minimum Wage Act 1998: This creates n NMW for employees and workers across the UK. The amount can change from time to time, so it’s important to have awareness about any updates to the NMW. Employment Relations Act 1999: Establishes a number of rights at work for trade union recognition, derecognition, and industrial actions. The Maternity and Parental Leave etc. Regulations 1999: A statutory instrument in UK labour that details the rights of employees for time off work for maternity and paternity leave. Agency Workers Regulations 2010: Aims to stop discrimination against any agency workers. Such as ensuring they receive the correct amount of pay, along with the right number of holidays, and safe working conditions. Part-Time Workers (Prevention of Less favourable Treatment) Regulations 2000: Requires you to provide employees on part-time contracts with comparable treatment to your full-time staff.

Transfer of Undertakings (protection of Employment) Regulations 2006: TUPE regulations ensure employee rights during a business transfer. This is a very complex process, but ensures staff receive fair treatment from a new employer who takes them on

Employment law would impose additional costs for Tesco because they have to spend additional money on training, recruitment and pay. Like the Health and Safety Act there are also benefits if the workers feel they are treated fairly and there is more security, they will be more motivated. Tesco know employment law better than most, because they are among the biggest private sector employers in the UK. Tesco also knows that paying workers from other country’s or backgrounds less than British workers won't work, this is because its unethical and against. employment law

Conclusion: Tesco starts the recruitment and selection process by firstly creating an advert of the vacancy available. Secondly the CVs of the applicants who applied for the position are screened to pick out the candidates who are best fit for the role and with the Tesco company, following on from this the candidates are then invited for an interview. Upon a successful interview they will then attend an assessment centre, and from this the company will depict the unsuccessful candidates and send them a letter of best wishes. Following on from this Tesco will then inform the candidates that they are invited to a second interview, and if the interview is a success, an offer letter and a contract will be sent to the candidate. The business chooses this method of recruiting as they aim to ensure all roles work together to drive its business objectives. It needs to ensure it has the right number of people in the right jobs at the right time, this is Because the company is growing. Tesco’s most successful method of recruiting is internally, this is because the company is very good at retaining its staff, as it recognises the importance of motivating its staff to progress their careers with the

company. Tesco appreciates its staff and, wants their employees to succeed and achieve their personal career objectives. This is also beneficial to Tesco as they seek to fill many vacancies from within the company. This is overall is advantageous for Tesco, because internal recruitment reduces the time to hire. This is a key benefit as Tesco needs to recruit on a regular basis for both the food and non-food parts of the business. Internally recruiting will also save money, this is a result of reducing time to hire and shortening onboarding times (which is the process of spending months explaining how payroll works or setting employee behaviour expectations). In addition to resources saved on finding and training staff or hiring managers, you cut back on cash used for things like using outside recruiters, conducting external recruiting, attending job fairs, and running background checks. Although Tesco finds much success from internal recruitment, it does have its disadvantages for the company. For example, while internal recruitment is an effective way to fill new roles, it almost always leaves a vacancy. In the end, you could use internal recruitment to fill that role, leaving yet another hole. It’s an endless cycle of shuffling employees that may ultimately end up with you seeking external candidates to stop the swap. Internal recruitment can also cause conflict amongst colleagues. In any situation, it can be difficult to embrace a new boss. Hiring internally can cause hard feelings among co-workers who can’t adjust to the new shift in roles and responsibilities. Those who applied for the job, but didn’t get it, can become bitter over time....