SUBJECT CODE: DRM 21

TITLE: Human Resource Management

NAME: VimaIa Krishnan

ENROLMENT NUMBER:

kecru|tment and Se|ect|on at 1esco

Introduct|on
Tesco is the biggest private sector employer in the UK. The company has more than 360,000
employees worldwide. In the UK, Tesco stores range Irom small local Tesco Express sites to
large Tesco Extras and superstores. Around 86 oI all sales are Irom 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 oI
Tesco`s strategy to diversiIy 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 Ior local needs. In Thailand, Ior 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
oIIering pre-packaged goods as it would in UK stores.
Tesco needs people across a wide range oI both store-based and non-store jobs:
In stores, it needs checkout staII, stock handlers, supervisors as well as many specialists,
such as pharmacists and bakers.
Its distribution depots require people skilled in stock management and logistics.
Head oIIice provides the inIrastructure to run Tesco eIIiciently. Roles here include human
resources, legal services, property management, marketing, accounting and inIormation
technology. Tesco aims to ensure all roles work together to drive its business objectives. It needs
to ensure it has the right number oI people in the right jobs at the right time. To do this, it has a
structured process Ior recruitment and selection to attract applicants Ior both managerial and
operational roles.
1ype of store
Lxpress
Metro
Superstore
Lxtra
Customer benef|t
Conven|ence and va|ue Iresh |oca| food
Conven|ence |n town and c|ty centers Lots of food ||nes
w|de range of non food ||nes such as DVDs and books
w|de range of food and non food |nc|ud|ng seasona| |tems such as
garden furn|ture
Jorkforce p|ann|ng
orkIorce planning is the process oI analysing an organisation`s likely Iuture needs Ior people
in terms oI numbers, skills and locations. It allows the organisation to plan how those needs can
be met through recruitment and training. It is vital Ior a company like Tesco to plan ahead.
Because the company is growing, Tesco needs to recruit on a regular basis Ior both the Iood and
non-Iood parts oI 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
Through an annual appraisal scheme, individuals can apply Ior bigger` jobs. Employees
identiIy rolesin which they would like to develop their careers with Tesco. Their manager sets
out the technical skills, competencies and behaviours necessary Ior 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 workIorce planning is to have clear job descriptions and person
speciIications. A job description sets out:
the title oI the job
to whom the job holder is responsible
Ior whom the job holder is responsible
a simple description oI roles and responsibilities.
At Tesco these documents are combined:

Job descriptions and person speciIications show how a job-holder Iits into the Tesco business.
They help Tesco to recruit the right people. They also provide a benchmark Ior each job in terms
oI responsibilities and skills. These help managers to assess iI staII are carrying out jobs to the
appropriate standards. Skills and behaviours Tesco`s purpose is to serve its customers. Its
organisational structure has the customer at the top. Tesco needs people with the right skills at
each level oI this structure. There are six work levels within the organisation. This gives a clear
structure Ior managing and controlling the organisation. Each level requires particular skills and
behaviours.
ttract|ng and recru|t|ng
#ecruitment involves attracting the right standard oI applicants to apply Ior vacancies. Tesco
advertises jobs in diIIerent ways. The process varies depending on the job available. Tesco Iirst
looks at its internal Talent Plan to Iill a vacancy. This is a process that lists current employees
looking Ior a move, either at the same level or on promotion. II there are no suitable people in
this Talent Plan or developing on the internal management development programme, Options,
Tesco advertises the post internally on its intranet Ior two weeks.
For external recruitment, Tesco advertises vacancies via the Tesco website www.tesco-
careers.com or through vacancy boards in stores. Applications are made online Ior managerial
positions.
The chosen applicants have an interview Iollowed by attendance at an assessment centreIor the
Iinal stage oI the selection process. For harder-to-Iill or more specialist jobs, such as bakers and
pharmacists, Tesco advertises externally:
through its website and oIIline media
through television and radio
by placing advertisements on Google or in magazines such as The Appointment Journal.
Tesco will seek the most cost-eIIective way oI attracting the right applicants. It is expensive to
advertise on television and radio, and in some magazines, but sometimes this is necessary to
ensure the right type oI people get to learn about the vacancies. Tesco makes it easy Ior
applicants to Iind out about available jobs and has a simple application process.
Se|ect|on
$election involves choosing the most suitable people Irom those that apply Ior a vacancy, whilst
keeping to employment laws and regulations. $creening candidates is a very important part oI
the selection process. This ensures that those selected Ior interview have the best Iit with the job
requirements.
In the Iirst stages oI screening, Tesco selectors will look careIully at each applicant`s
curriculum vitae (CV). The CV summarises the candidate`s education and job history to date. A
well-written and positive CV helps Tesco to assess whether an applicant matches the person
speciIication Ior the job. The company also provides a job type match` tool on its careers web
page. People interested in working Ior Tesco can see where they might Iit in beIore applying.
The process Tesco uses to select external management candidates has several stages.


Conclusion
orkIorce planning is vital iI a business is to meet its Iuture demands Ior staII. It allows a
business time to train existing staII to take on new responsibilities and to recruit new staII to Iill
vacancies or to meet skill shortages. Tesco is a major international company with many job
opportunities, including management, graduate, school leaver and apprentice posts. Tesco needs
to have people with the right skills and behaviours to support its growth and development. Tesco
has clear organisational structures, detailed job descriptions and person speciIications. It
provides user-Iriendly ways oI applying Ior jobs and a consistent approach to recruitment and
selection. This means it can manage its changing demand Ior staII.

Incent|ve p|ans of an organ|zat|on
The right incentive plan properly implemented can drive your business ahead like a rocket ship.
But if expectations increase faster than actual payouts-watch out for trouble'
An incentive program is a Iormal scheme used to promote or encourage speciIic actions or
behavior by a speciIic group oI people during a deIined period oI time. Incentive programs are
particularly used in business management to motivate employees, and in sales to attract and
retain customers. ScientiIic literature also reIers to this concept as pay Ior perIormance.

#emuneration policy
It is the role oI the Remuneration Committee to determine and recommend to the Board the
remuneration policy Ior the Chairman and Executive Directors. Tesco has a long-standing policy
oI valuing talent and experience and seeks to provide incentives Ior delivering high, sustainable
and proIitable growth which leads to a strong increase in value Ior shareholders. The
remuneration strategy is tailored to reward the delivery oI strong year-on-year earnings growth
as well as sustained perIormance in the longer term.

Compliance
In carrying out its duties, the Remuneration Committee gives Iull consideration to best practice.
The Committee was constituted and operated throughout the year in accordance with the
principles outlined in the Listing Rules oI the Financial Services Authority derived Irom the
Combined Code on Corporate Governance. The Remuneration Report complies with the
disclosures required by the Directors` Remuneration Report Regulations 2002.

A summary oI Directors` emoluments and interests is set out below. The Iull Remuneration
Report is provided in the Annual Report and Financial Statements 2010.




ncentive Plans Pull Companies Together!

Years ago the only employees oIIered incentive pay were sales personnel, piece workers, and top
executives. Today most large corporations, and many smaller Iirms, oIIer an incentive package
to all oI their employees.
Some kind oI incentive pay is an important part oI any compensation plan. Incentive pay shows
appreciation and creates a sense oI participation in the company's well-being that straight salary
dollars, no matter how large, don't convey. A well-designed incentive-pay plan can also help pull
people together, help point them in the direction you want them to go, and give that extra push
that every company needs in today's competitive environment.
Profit-$haring Plans Are Common

ProIit-sharing plans are probably the most widespread incentive-pay programs at larger
corporations. They are generally company-wide and made available at least to all Iull-time
employees. Usually the company will contribute a small percentage oI its pre-tax proIitability to
a pool, which is then divided among eligible employees. Division is typically prorated according
to the base salary oI each participant. ProIit sharing is generally done on an annual basis. At
some Iirms proIit sharing may be directly contributed as pre-tax dollars into a retirement
program, such as a 401K program.
ProIit plans work best at more established Iirms with relatively steady earnings. The criteria Ior
the proIit plan must be careIully deIined in advance.
Profit Plans Don't Always Work

The advantages oI a proIit-sharing plan include: It pulls people together since everyone is on the
same plan; it gets people to Iocus on proIitability; and its cost to the company goes up and down
in sync with pre-tax earnings.
The disadvantages include: It echoes the base salary; it does not take into consideration
perIormance during the year; it is Iocused on a single objective.
For smaller companies with erratic earnings, proIit-sharing plans can Irustrate and irritate
employees by creating expectations that are not IulIilled each year. I switched away Irom a
proIit-based incentive plan because I Iound that a small payout level, Iollowing a year oI weak
proIitability, made a low morale situation even worse.
ncentive Programs Award Achievers

Last year we switched to an individual bonus incentive program, where the annual payout is
determined by a subjective evaluation oI each person's perIormance.
The advantages are: Unlike a proIit-sharing plan, we can dramatically diIIerentiate the payout
given to a star perIormer versus a weaker one; we can diIIerentiate between an individual's
perIormance and the company's perIormance; and there is complete Ilexibility Ior a signiIicant
one-time payout iI an employee has an extraordinary accomplishment that may not be repeated
in Iuture years.
The disadvantages include: The payout is subjective, and employees may Ieel that they deserve a
higher pay-out; it can be divisive when, all too oIten, a top perIormer tells other people what a
big bonus they got; employees may Iocus more on "looking good" than on working to increase
corporate proIits.
Many Other ncentive Options

In addition to proIit sharing and bonuses, here are some other incentive options:
O In salary-at-risk plans, which I don't recommend, employees receive their Iull base pay
only iI perIormance meets minimum goals, but a larger payout is possible.
O Gain sharing, popular at some manuIacturing Iirms, provides Ior a portion oI increases in
eIIiciency to be shared with employees.
O Stock or options are available at many public companies, but are less practical at private
ones.
I've successIully used cash awards Ior speciIic achievements, such as cost-cutting ideas.
Some plans have multiple goals with a percentage oI the payout determined by how well a
person perIorms on each objective. hile I highly recommend incentive-pay plans, design and
implement yours careIully! All too oIten incentive programs backIire when they Iail to meet
employee expectations.
Loyalty programs are structured marketing eIIorts that reward, and thereIore encourage, loyal
buying behavior behavior which is potentially beneIicial to the Iirm.

Various loyalty cards In marketing generally and in retailing more speciIically, a loyalty card,
rewards card, points card, advantage card, or club card is a plastic or paper card, visually similar
to a credit card or debit card, that identiIies the card holder as a member in a loyalty program.|2|
Loyalty cards are a system oI the loyalty business model. In the United Kingdom it is typically
called a loyalty card, in Canada a rewards card or a points card, and in the United States either a
discount card, a club card or a rewards card. Cards typically have a barcode or magstripe that can
be easily scanned, and some are even chip cards. Small key ring cards (also known as key tags)
which serve as key Iobs are oIten used Ior convenience in carrying and ease oI access.
A retail establishment or a retail group may issue a loyalty card to a consumer who can then use
it as a Iorm oI identiIication when dealing with that retailer. By presenting the card, the
purchaser is typically entitled to either a discount on the current purchase, or an allotment oI
points that can be used Ior Iuture purchases. Hence, the card is the visible means oI
implementing a type oI what economists call a two-part tariII.
The card issuer requests or requires customers seeking the issuance oI a loyalty card to provide a
usually minimal amount oI identiIying or demographic data, such as name and address.
Application Iorms usually entail agreements by the store concerning customer privacy, typically
non-disclosure (by the store) oI non-aggregate data about customers. The store one might
expect uses aggregate data internally (and sometimes externally) as part oI its marketing
research. These cards can be used to determine, Ior example, a given customer's Iavorite brand oI
beer, or whether he or she is a vegetarian.