Swot tesco

Subject: The role of human resource function in a successful organisation. Contents page Page numbers Introduction Task 1 – An outline of the Human resource functions Task 2 – Workforce planning Task 3 – Key recruitment documents Task 4 – The importance of training & development Task 5 – Performance management Main body Task 6 – An overview of the HR function at Tesco Task 7 – In depth investigation of Performance Management Task 8 – Interpreting Labour Market information Task 9 – analyse the key recruitment documents Task 10 – Labour Market information and the business Task 11 – the relationship between training & performance Conclusions Task 12 – HRM & Competitiveness Task 13 – conflicts within HRM Task 1 – an outline of the Human resource functions The main purpose of the human resources function is to recruit, select, train and develop staff. This means finding the right people, training and developing them so they achieve their maximum potential and creating systems that achieve high levels of morale and motivation. HR departments also often have the following responsibilities: Workforce planning This department is a major area of HRM. This involves anticipating in advance requirements of the organisation both in terms of employees required and the appropriate skill mix. This will help the firm to predict likely changes in employment required, recognise future trends, in training and employ new human resources to meet these trends. Recruitment and selection Recruitment and selection is about appointing the best person to do the job. Working conditions Working conditions such as the temperature, amount of light, toilet facilities could also affect an employee’s motivation. Induction training & career development Induction training is given to a new job holder. This could include: history of the business, tour of the premises, introduction to other employees, health and safety procedures including fire evacuation, being shown how to use machinery. Induction training helps new employees to settle and become effective quickly. Appraisal Appraisal is the process of assessing the effectiveness of a process or an employee. Consultation Consultation: asking for the views of those who will be affected by a decision. These views should then be taken into account by the executive responsible for taking the decision. Promotion and transfers Promotion is when someone as being appointed to a more responsible and respectable job. Transfers is when someone as been transfer to a different department or to a different place for work. Termination of employment This is a better way of saying that an employee has been ‘ fired’ from their job. Disciplinary and grievance procedures Disciplinary procedure is the formal process by which employees can be taken to task for failure to meet their employment contract. If the employee does not change his or her attitude or behaviour, it will lead to verbal then written threats of dismissal. A grievance procedure is the method that an employee can make a serious complaint his/her treatment at work. Pay, rewards & fringe benefits Any benefit received by employees in addition to their wages or salary. Common fringe benefits are a company pension scheme, a company car and discounts when buying the firm’s products. Wage bargaining This is where an employee will negotiate their salary with their manager. Because the employee fells that it is time for a wage increase. Heath and safety issues Imposes on employers the duty to ensure, the health, safety and welfare at work of all staff. Firms must provide all necessary safety equipment and clothing free of charge. Employers must provide a safe working environment. Finally, all firms with five or more employees must have a written safety policy on display. Employment legislation Employment legislation is were employees need to follow certain rules and conditions in order to work for the organisation. The importance of human resources department to the business. Human resource department has the responsibility of using and developing staff within the business. This is done by improving and developing different areas in the organisation. When recruiting or when dismissing someone, this department is responsible. When recruiting someone for the job, they make sure that they are getting the best possible person for the job. In addition, this department is responsible for training new employees and to make sure that they know what to do. This department also deals with wages, reward promotions etc. This department is one of the most important ones. This will affect the company because it they have got good employees the will give better customer service. This means that the companies’ market share, profits and sales will increase. Task 2 – workforce planning Workforce planning is a important area of work in HRM. The process of anticipating in advance the human resource requirements of the organisation, both in terms of the number of individuals required, and the appropriate skill mix. This will help the company to foresee change in employment requirements, identify future trends in training and to carry out new human resources policies in order to meet these trends. (Some of this information has been extract from a book). A company might use external labour market information when producing its workforce plan. External recruitment is constrained by many factors outside the company’s control. This is a list of external factors: • Skills of local people • Age profile of population • No. Of males/ females available • Travel to work distance and transport facilities • Competition HR packages • Local rates to pay • Surrounding education provision Skills of local people – local people may not have the right skills requested to do the job. This will help the business because they will know what type of skills local people have. Also it will cost the business a lot of money, training people. Also it will help because they will know what type of training is needed for local people. Age profile of population – the might be more young people in the population. This means that there are not a lot of workers. This will help the business because they will know what is the age profile of the population. This will affect the recruitment because it will be difficult to find people to work. No. Of males/ females available – if there are a lot of people with children, they can have a full time job. They need hours that suit them e. g. 10-12. This will help the business because they will know how may parents cannot work. Travel to work distance and transport facilities – people might not be prepared to travel long distances on public facilities to get to work. This will help the business because they will know what distance are people prepared to travel to go to work. Competition HR packages – competitors might offer better HR packages. This will help the business because they will know which competitor offers the best and cheapest HR packages. If the business doesn’t offer better HR packages, they will not have a lot of people applying for the job. Local rates to pay – in a specific area the rates might be high. This means that some companies are not prepared to pay. This will help the business because they will know how much they need to pay for local rates. Surrounding education provision – how many schools or colleges are provided in a specific area. This will help the business because they will know what type of education provision there is in a specific area. Task 3 – key recruitments documents Job description The job description describes what the job is. The job description is a written description of what the job consists of. It includes the formal title of the job and the main purpose of the job. It also includes details of who the job holder is responsible to and whether they are responsible for managing other staff. It may include some performance targets. The purpose is to let people know what is expected in the job. Person specification The person specification describes the ideal person. It will list the qualifications, experience, skills and personal qualities of the ideal candidate. The purpose is to tell people what characteristics are needed for this particular job, so people can apply for the job if they are the ideal person. Job advertisement The advert should describe the job and skills required. It will often indicate what the pay is, and what training and other benefits are offered. And it must explain how the person should apply for the job. The locations include local and national press, job centres, trade journals and employment agencies. The job advertisement gets people to apply. The purpose of a job advert is to get as many suitable people as possible to apply for the job. The firm should decide what it should contain, where it will be put and for how long. Application form The written application enables the firm to decide which candidates meet the person specification, and which don’t. An application form is designed by the firm and completed by the applicannot . It gives the firm the information that it wants, and nothing else. The purpose is that it will help the firm make a shortlist. CV and letter of application A curriculum vita (CV) is a summary of a person’s personal details, skills, qualifications and interests. It is written in a standard format to give the firm the basic facts. In a letter of application the candidates write about themselves, it gives the firm an idea of the applicannot ‘s personality as well as their written communication skills. The purpose of a CV and a letter of application is that an employer can build up a clear picture of the applicannot ‘s suitable for the job. Interview appraisal form This is a form, which the interviewer will fill in after the interview. This interview might be conducted through a questionnaire or on a one-to-one discussion between the interviewee and interviewer. The interviewer will ask a set of questions and will record the interviewee performance objectively. Legal / Ethical factors must be considered when carrying out interviews. Sex Discrimination Act 1975 This Act makes it illegal for anyone to be discrimination against on grounds of gender either directly or indirectly. In employment this applies to recruitment and selection for jobs and promotion, training, the way you are treated in a job, dismissal and redundancy. Direct discrimination is where one gender is excluded e. g. only men need to apply. Indirect discrimination is where a condition would make it more difficult for one sex to complete. Race Relations Act 1976 Discrimination on the grounds of colour, race, nationality or ethnic or national origin is unlawful. There are certain special circumstances under which it can be justified, e. g. restaurants for authenticity, but these are relatively rare. If discrimination against, individuals can take their case to an employment tribunal. Disability Discrimination Act 1995 (Applies to businesses with over 15 employee) This Act is concerned with discrimination against people with disabilities in employment. The disability may be physical, sensory or mental but must be relatively long-term (more than 12 months). Employers must not treat a disabled person less favourably than able-bodied person whether in recruitment, training promotion or dismissal unless it can be justified. Employers must also reasonable adjustments to the workplace to enable a disabled to do the job. Disable d persons who suffer discrimination can complain to an employment tribunal. Equal Pay Act 1970 This act says that an employee must be paid the same as another employee doing the same job. The act intendeds to give men and woman equal pay. Men and woman often do different jobs, so exact comparisons are difficult. Selection techniques must also be considered when recruiting. Interview Short listed candidates are invited for interview. Only one person sometimes does interviews, but for more senior job’s it’s usual to have a panel interview, where two or more people interview the candidate. Interviewers should ask the same questions to all candidates so that the process is fair. They should not ask questions that are irrelevant to the job or unfairly discriminate. Interviews can help a firm assess how confidant a candidate is, what the candidate’s social and verbal skills are like, and whether they’ll be compatible with the firm’s other workers. They also can use other selection techniques such as application form, curriculum vitae, references, aptitude tests, psychometric tests, group exercises and assessment centres. Curriculum vita A curriculum vita (CV), which the applicannot creates, will contain similar information and may be preferable for more senior positions when an application form may not hold sufficient detail. Curriculum vitae will include applicannot ‘s qualifications, experience and interests. This information will provide sufficient detail to enable a recruiter to build a picture of the applicannot ‘s suitability, to provide references that can be taken up, and to give starting points for discussion at interview. Objectivity Interviewers should ask the same questions to all candidates so that the process is fair. They should not ask questions that are irrelevant to the job or unfairly discriminate. They need to make a decision on fact rather on personal interviews. Good practice in recruitment When an interviewer is carrying out an interview, in addition to following employment legislation during interviews, the interviewer needs to be: • The interviewer must give a candidate a chance to speck and expand on their answer • The interviewer need to listen carefully • The interviewer must not make any assumptions about the candidate • The interviewer must judge on fact not on opinion Task – 4 the importance of training & development Training should start on the very first day. Training is the main way that a firm invests in its workers. A well- trained workforce will usually be more productive because they’re better at their job. They might also be better motivated because they enjoy feeling that they’re good at what they’re doing. A trained workforce is essential if a business is to remain competitive in a world where customers demand higher standards of goods and services. Staff training is essential if people are to continue to be efficient members of an organisation. The main benefits for the business of successfully training and developing employees will be: • Help employees achieve maximum efficiency in their current jobs, this means they will produce more products in less time and the companies profits and sales will increase. • Employees can be motivated to greater effort and quality in their work if they are given good quality training. This will also increase profits and sales. • Help the organisation meet its targets for developing and keeping people with the right skills to meet future needs. The problems for a firm if training and developing are not undertaken are: • The staff will not meet targets because they will not know how to work the machinery. Also they do not know what to do and when to do it. This means that the business sales and profits will decrease. • The staff will feel de-motivated and will not feel part of the company. This will also decrease sales and profits because employees don’t know what to do. • If there is no training and development within the firm, the staff will feel less confident in their job. Task 5 – performance management The purpose of performance management is to manage the performance of employees. The term performance management came into use in the 1980s. It refers to the practice of setting targets, measuring performance against these and suggesting courses of action. These are the four main motivation theories. Maslow’s hierarchy of needs Maslow’s hierarchy of needs Maslow believed that all people are motivated by the same things. The three lower needs at the bottom of the pyramid have to be achieved before the two higher needs can be met. Self – actualization, people want to feel they are achieving something. Managers should help staff set and reach their own personal targets. Self – esteem, people want to feel valued by others. Managers should praise and encourage, and give financial rewards for good performance. Love and belonging, people enjoy the company of others. Managers should encourage team work and social contact. Safety, people want to feel safe and secure from harm. Managers should give their workers job security. Physical survival, people need food, water, shelter, clothing and warmth. These should be met by a basic wage. Mcgregor’s theory X and theory Y McGregor believed that there are two types of manager. They motivate workers in different ways. Theory X managers believe, workers are only motivated by money. Workers are lazy, dislike work and lack ambition. Workers need to be controlled and coerced by managers. Theory Y managers believe, workers are motivated by many needs. Workers can take pride and responsibility in doing a good job. Management should trust workers and help them do their best. Herzberg’s two factor theory Herberg’s theories, produced in the 1950s, concern job design and satisfaction. From numerous interviews with accountants and engineers he concluded that two sets of factors are important. Hygiene factors, which include reasonable pay, satisfactory conditions of work and benefits packages such as sick pay, pension’s schemes. Without these people are dissatisfied, but they alone do not lead to job satisfaction or provide motivation. Motivators, which include responsibility, challenge, self – improvement, these provide job satisfaction and motivate people. Taylor’s Scientific Management Taylor’s was an American engineer who studied production methods in the steel industry. He was interested in job design and his theory suggested a production – line approach. Taylor’s believed that complex jobs would be most efficiently performed if they were broken down into separate operations so that very little could go wrong. Each operation would be performed by a separate employee. The whole job could then be completed in a series of stages by a number of employees working together. Task 6 – an overview of the HR function at Tesco. Describe how the business uses workforce planning Tesco’s workforce planning is carried out from the head office. Describe the businesses recruitment and selection programme Tesco is a big company and recruits a lot of people during the year. Tesco’s aim is to ensure that they attract and offer employment, to either internal or external applicannot s who are most suitable for the current and future needs of the business. When at Tesco’s there are some new opportunities for internal staff, Tesco’s will advertise the new job in store. If no one wants the job then they will advertise out side the store. They will advertise the job by using the Internet, newspapers and job centres. If anyone is interested then they apply and if Tesco’s think they are suitable for the job, they will go for an interview. When candidates go to Tesco’s for an interview the interviewer will ask the candidate a set of questions. This questioner will include questions such has, ‘ give me an example of how you solved a difficult problem’ or ‘ what do you think makes you a good communicator. Describe the business training and development programme At Tesco’s there are a lot of different types of training, this is because there are different departments such has checkouts, home shopping fish counter etc. at Tesco’s they use different types of training such has on going, training framework, care skills, health & safety, legal, food safety and multi- skill. By training all its members staff Tesco’s will develop a good team, which will increase Tesco’s sales and profit. Describe the businesses system of performance management Tesco’s monitor the performance of its employees by giving them a review plan once a year. Depending on what area of the store, staff have got targets to meet. For example when a member of staff from the checkouts gets their review plan, it will show it they have meet their target which is to scan a certain amount of products every hour. This is called scan rate operate targets. An other example is when a member of staff on the shop floor gets their review plan it will show how many cages they have done. Staff need to bring out 5 cages in one hour in order to meet their targets. This is called cage targets. Staff’s performance is an on-going process at Tesco’s. Task 7 – in depth investigation of Performance Management At Tesco’s the appraisal system is carried out every 12 months. An appraisal system is an opportunity to discuss with members of staff what’s going well, what can be improved, how they would like to develop and any reasonable suggestion from any member of staff. At Tesco’s these meeting are done between the manager and Tesco’s employee. These meeting are also confidential. Productivity is measure at Tesco’s by using the appraisal system. This form show if members of the staff have meet targets, if there are doing the job properly. For example when a member of staff from the checkouts gets their review plan, it will show it they have meet their target which is to scan a certain amount of products every hour. This is called scan rate operate targets. An another example is when a members of staff on the shop floor gets their review plan it will show how many cages they have done. Also it will show how much products they have sold in the past year and other relevant information about the company. Performance management at Tesco’s use this data to make sure that targets are meets, and that the company is doing well. Also if something goes wrong or targets are not met, then Tesco’s can suggest courses of action in order to improve the company. The pay and reward system at Tesco’s is done every year. For the best member or members of staff that have contribute to the company in a very big way, Tesco’s will give certificates of recognition, praise and value awards. Tesco’s doesn’t pay all its staff the same amount of money, this is because they have got different department with have got more responsibilities the other departments. For example checkout staff gets more money then people that work in the home shopping department. Another example is staff that work in the pharmacy department get more money then staff that work in the fish department. Staff at Tesco’s is paid per hour and they get paid every month. Managers have got a fixed salary, which they also get paid a part every month. At Tesco’s they use motivation theories in order to motivate staff. They use the Maslow theory. This is done by helping staff set and reach their own personal targets, by encouraging and praising staff, and giving them rewards for good performance. They use Mcgregor’s theory X and theory Y. Tesco’s pay its employees in order to work and be motivated, staff is controlled and coerced by managers. Also Tesco’s Management trust workers and help them do their best. Tesco’s uses Herzberg’s two factor theory. Tesco’s treat all its employees in the best possible way they can. They do this by giving then a reasonable pay, satisfactory conditions of work and benefits packages such as sick pay, pension’s schemes. Also they give their staff responsibilities, challenges, in order to motivate their staff. They also use Taylor’s Scientific Management theory. Tesco’s has got different departments such as checkouts, pharmacy each operation’s is performed by a separate employee. By doing this the whole job will then be completed in a series of stages by a number of employees working together. Tesco also pay bonuses to managers in order to motivate them. Performance management contributes to Tesco’s objectives. This is because Tesco’s will know if each employee has met their target, also they will know which areas need improving in order to meet their targets. Tesco’s measure the effectiveness of its performance management system; by meeting targets, and by looking at the business becoming more successful. Task 9 – analyse the key recruitment documents  Job description  Person specification  Job advertisement  Application form  Interview appraisal form Job description The aim is to ensure that the job fits the needs of the organisation. The main strengths of this document at Tesco’s, is that it will include a lot of information about the job. The main weakness of this document is that it doesn’t include a lot of information about the company. The type of information that Tesco’s will provide will be; Job Title, location, hours of work, main purpose of the job, duties and responsilibilities, qualifications, skills and experience. All this information will help to find the best possible candidate for the job. The way that I would improve this document will be, by putting more information about the companies’ background. Also by including some performance targets, which the candidate will need to meet. Person specification The person specification at Tesco’s shows the skills, qualifications, aptitudes and abilities that a person will require to successfully perform a particular job in the organisation. The type of information included will be qualifications, skills, personal qualities and experience of the ideal candidate. The main strength of this document at Tesco’s is that the document describes the ideal person. The main weakness is that it doesn’t include things like motivation, phrases such as: are you ‘ ambitious’ ‘ a self starter’ ‘ able to work on your own?’ ‘ Can you make your own decisions?’ All this information will help to find the best possible candidate for the job. The way that I would improve this document will be, by putting in the right aptitude, any special abilities or qualifications that are needed, for example, ‘ the candidate should be flexible and adaptable and able to work under pressure’. Job advertisement The job advertisement at Tesco’s describes the job and tells what skills are required. The main strength of this document is that a lot of people apply for the job, because it includes a lot of information and it is advertise on the internet, job centres and in the actual store. The main weakness is that they do not advertise on the trade journals. The way that I would improve this document is by advertising in educational establishments, such as schools and colleges. This is because it can be a useful source of potential employees. Application form The main aim at Tesco’s of an application form is to find out about candidates by asking for information in a structured way. This document includes; personal details, education and qualifications, declaration of a criminal record, experience/employment history references and other relevant information. The major advantage is that the information captured in this way can be processed conveniently. Since the right questions are asked the relevant information will be there. Also another strength is that all the candidates have all the same questions, this means that Tesco’s can decide which candidates meet the person specification, and which don’t. The main weakness of this document is that it doesn’t include personal questions. The way that I would improve this document is by including more questions such as; are you able to work on your own or as a team? Are you a self starter? Can you make your own decisions? Interview appraisal form The main aim at Tesco’s of an interview appraisal form is to find out about how members of the staff are getting on at Tesco’s. The main strength of this document is that the company will get a clear picture of its employee’s progress, how they getting on and if employees need more training. All this information is very important for Tesco’s because they will know if employees are doing well or if they need training. The main weaknesses of this document is that at Tesco’s carry’s out this appraisal form every six month, this means that Tesco’s doesn’t know before that how its employees are feeling, if they are suitable for the job or not and if they need training to improve them. The way that I would improve this document is by doing it every three months and including more information such as ‘ what type of training would you be interested to do in the future’ and ‘ what type suggestions you will give to improve the training’. Task 10 – Labour market information and the business By looking at the information that I have collected from the labour market we can see that the level of unemployment is low (10%). This means that Tesco’s will find it very difficult to recruit new staff. Tesco uses this information to try and attract potential employees, they do this by increasing the level of pay and giving it employees’ benefits, such has a discount card. The way that I would improve Tesco’s package will be by giving all it employees every year a small share of their profits. From looking at my results we can see that 49% of the workforce are woman. This means that nearly half of the workforce are women. Tesco’s uses this information to try and give its employees and potential employees, family friendly working hours, for example 10am until 2pm. The way that I would improve this will be by offering crèches to its employees. From looking at the information that I have collected from the labour market we can see that the size of the workforce has grown during the past years. This means that there are more and more people that are working. Recruiting at Tesco’s is easier now, because more people are prepared to work. Tesco’s also can recruit people without the need of training them because the workforce as increased during the past years; this means that people will already have been trained in different places to do similar things.