A case study on workforce planning
Tesco is the biggest private sector employer in the UK. The company has more than 60,000 employees worldwide. In the UK, Tesco stores range from small local Tesco Express sites to large Tesco Extras and superstores. Around 86% of all sales are from the UK
Tesco also operates in 12 countries outside the UK, including China, Japan and Turkey. The company has recently opened stores in the United States. This international expansion is part of Tesco's strategy to diversify and grow the business.
In its non-UK operations Tesco builds on the strengths it has developed as market leader in the UK supermarket sector. However, it also caters for local needs. In Thailand, for example, customers are used to shopping in ‘wet markets' where the produce is not packaged. Tesco uses this approach in its Bangkok store rather than offering pre-packaged goods as it would in UK stores.
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 a structured process for recruitment and selection to attract applicants for both managerial and operational roles.
Workforce planning is the process of analysing an organisation's likely future needs for people in terms of numbers, skills and locations. It allows the organisation to plan how those needs can be met through recruitment and training. It is vital for a company like Tesco to plan ahead. Because the company is growing, 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 arise as employees leave the company - when they retire or resign - or get promotion to other positions within Tesco
New types of jobs can be created as the company changes its processes and technology.
This planning process runs each year from the last week in February. There are quarterly reviews in May, August and November, so Tesco can adjust staffing levels and recruit where necessary. 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.
Tesco seeks to fill many vacancies from within the company. It recognises the importance of motivating its staff to progress their careers with the company. Tesco practises what it calls ‘talent planning'. This encourages people to work their way through and up the organisation. Through an annual appraisal scheme, individuals can apply for ‘bigger' jobs. 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
An important element in workforce planning is to have clear job descriptions and person specifications. A job description sets out:
• The title of the job
• To whom the job holder is responsible
• for whom the job holder is responsible
• A simple description of roles and responsibilities.
A person specification sets out the skills, characteristics and attributes that a person needs to do a particular job.
Together, job descriptions and person specifications provide the basis for job advertisements. They help job applicants and post-holders to know what is expected of them. As they are sent to anyone applying for jobs, they should:
• contain enough information to attract suitable people
• act as a checking device to make sure that applicants with the right skills are chosen for interview
• set the targets and standards for job performance.
At Tesco these documents are combined: Job descriptions and person specifications show how a job-holder fits into the Tesco business.
They help Tesco to recruit the right people. They also provide a benchmark for each job in terms of responsibilities and skills. These help managers to assess if staffs are carrying out jobs to the appropriate standards.
Source: https://businesscasestudies.co.uk/tesco/recruitment-and-selection/#axzz2pbxBSEVl
To achieve a pass in this unit you must successfully address the following tasks (P1-P15):
P1 Explain the difference between personnel management and human resource management. You can use an organisation of your choice if necessary (Guidance: Define personnel management and human resource management and show at least five differences).
P2 Assess the function of the human resource management in contributing to organisational purposes [You may refer to the scenario above or use an organisation of your choice] (Guidance: You may need to show how human resource management as a function contributes to the overall purpose of the business.
P3 Evaluate the role and responsibilities of Tesco's line managers in human resource management {you can also use any organisation of your choice} (Guidance: You may need to comment on the strengths and weaknesses of the organisation.
P4 Examine the impact of the legal and regulatory framework on human resource management (AC 1.4) (Guidance: consider the followings: Sex Discrimination Act 1995/7, Race Discrimination Act 1992 and Disability Discrimination Acts 1995 and 2005)
P5 Consider the reasons for workforce planning in Tesco or any other organisations (Guidance: think about when new branches are opened, employees retire, resign or got promoted){ You may need to define workforce planning and show its importance to organisation of your choice.}
P6 List and explain the stages involved in planning human resource requirements
P7 Compare the recruitment and selection process in Tesco and any other organisations (AC 2.3) {Guidance: Define the recruitment and selection process. Show similarities between the two organisations.}
P8 Evaluate the effectiveness of the recruitment and selection techniques in two organisations [Note: You may use the organisation in the scenario and one more of your choice]{ Using the same organisations in P7 comment on the advantages and disadvantages.} (AC 2.4)
P9 Assess the link between motivational theory and reward (AC 3.1) (Guidance: A Maslow, F Herzberg and D McGregor){ Define motivation and reward. State the difference in motivation theories and link them to reward.}
P10 Evaluate the process of job evaluation and other factors determining pay( Define job evaluation and talk about the process in job evaluation and factors determining pay.) (AC 3.2)
Tasks (P11-P15) should be presented in the form of PowerPoint slides
P11 Assess the effectiveness of reward systems in different contexts (AC 3.3) (Guidance: performance related pay, pension schemes, profit sharing and employee share options.. Define reward system, give examples of reward system in another college.)
P12 Examine the methods organisations use to monitor employee performance (AC 3.4){ Guidance :appraisal, feedback and performance indicators. Define employee performance and look at the different methods used in monitoring employee performance.
P13 Identify the reasons for cessation of employment with an organisation (AC 4.1) {Guidance: dismissal, resignation, retirement and redundancy. Define cessation of employment and list down the reasons for cessation..}
P14 Explain the employment exit procedures used by two organisations (AC 4.2) {Guidance: retirement, resignation, dismissal and redundancy. Define exit procedures and compare the exit procedures of the two organisations.
P15 Consider the impact of the legal and regulatory framework on employment cessation arrangements. (AC 4.3) {Guidance: Counselling, training, and employment tribunals}