Olympia College, Ipoh

Diploma in Business Management

1.0 Introduction
Managing People is important because an organization need a well-managed
workforce in order to achieve their goals. Therefore, Managing People is the development
and implementation o systems in an organization designed to attract, develop and retain a
high-performing workforce.
In this assignment, there are 4 tasks have been given about the worlds largest retailer
which is Tesco. Task 1 will be explaining about the strengths and weaknesses of the methods
of attracting and recruiting candidates. Task 2 will be explaining about the ways the managers
at Tesco can achieve employee development and reward effort. Therefore, task 3 will be
explaining about the methods that Tesco can use to retain its quality staff. Lastly, task 4 will
be explaining about the ways that Tesco can resolve its human resource management
problems at 3 levels which are individuals, groups and organizational.
Tesco is the worlds largest retailer with 530,000 colleagues and trades over 12
countries. According to tescoplc online website Tesco was founded in 1919 by Jack Cohen
from a market stall in Londons East End. Tesco is a company of innovators. Tesco makes
life little bit convenient for their customers such as developing everything from apps to online
platforms so that their customers can shop with them anytime, anywhere and in any way.
Therefore, Tesco has their vision and values which is to earn the customers loyalty and
create value for customers.

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2.0 The Methods of Attracting and Recruiting

The aim of the human resource manager at this stage is to attract a group of
applicants, all of whom are at least minimally qualified and hence, from there he or she can
after collecting information about the candidates, choose the most preferable candidate to fill
the vacancy. Besides that, potential applicants can be found both inside and outside the
organization. Now looking into Tesco organisation, Tesco advertises job in different ways and
the process varies depending on the job available. Thus, Tesco have both Internal and
External Recruitment. Internal recruitment and external recruitment normally used to employ
employees. Hence, if there are strengths in internal recruitment and external recruitment,
there are also weaknesses in internal recruitment and external recruitment.
2.1 Advantages and Disadvantages of Internal and External Recruiting
2.1.1 Internal Recruitment

Advantages

Less Expensive.

Existing employees have opportunity to enhance their career.

Further job opportunities may be created as a result of recruiting internally.

Organization can make use of its pool of existing workers.

Improve employee morale

Reward good work done by current employees.

Disadvantages

Small pool of workers to chose from.

Less opportunity to bring new skills, idea and experience into the organization.

Lack of ownership of tasks due to employee expectation of moving on to another job.

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Diploma in Business Management

Lack of stability in work teams due to team member regularly moving to other
positions.

Possibility to produce unhealthy inbreeding as employee may have minimal

perceptive.

High cause of political infighting for promotions.

Many not help organisation making or taking up change.

Ripple effect is possible to be caused.

2.1.2 External Recruitment

Advantages

New workers can bring new skills and innovation to the organization.

The organization attracts a wider pool of home and abroad.

More chances of recruiting a good fit because the organization is recruiting from a
wider pool.

Hiring experienced employee can reduce training needed.

Provides new ideas

Allows rapid growth and increase diversity

Only hired at one level

Disadvantages

More Expensive.

Existing employees will not have the chance to enhance the careers.

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Diploma in Business Management

Recruitment process may be slower.

Less information available on applicants.

Can hurt employee morale and loyalty.

Destroys incentive of present employees to strive for promotion.

Outsiders take time to become familiar with current systems and organization
cultures.

2.2 Strengths and Weaknesses of Internal Recruitment

Internal recruitment means current employees who would like to be considered for a
vacant position which arises within organization (Aminuddin, 2009, p.26). Therefore, Tesco
look into internal Talent Plan to fill the vacant. This internal Talent Plan process begin when
current employees wants to move at the same level or to a promotion level. Thus, managers
and the human resource manager have to ensure the particular or specific job have a well
defined of Job Description on which is well explained to the employee joining new job or
training up to a new positions internally. For the job description contain which need to be
included, see Appendix A. Therefore, the strongest strengths of internal recruitment are the
fast making decision. One of the policy which is a quick decision making is by direct
appointment or giving promotion by the management. Besides that, managers usually
promote their colleagues as the rewards and make more effectiveness workforce. In certain
period management will exchange their employees department to another so that it can be an
element of a job rotation. In order to cover the vacancy process and provide key skills to their
employees, management will transfer their workers. Internal recruitment is also substantial of
saving cost of employees training, reduces the employment cost and helps to reduce the
orientation cost. Besides that, internal recruitment normally is not costly and faster than
external recruitment. Internal recruitment usually the employment is much loyal to the
organisation. In contrast, the weaknesses of the internal recruitment is it does not bring in any
develop skills and it could reduce the possibilities of the innovative ideas. Sometimes, it is
difficult to seek a good candidate for a position and therefore, other employees might get
upset of not promoting them for the position available.

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Diploma in Business Management

2.3 Strengths and Weaknesses of External Recruitment

External recruitment has many methods which are available to attract applicants for a
vacant position. This includes the employment agencies and consultant, campus recruitment
exercises, employee referrals, unsolicited applicant files, advertising in the mass media and
advertising through the Internet. Therefore, Tesco look into the external recruitment which is
the E-recruitment method. Tesco advertises job availabilities via Tesco website or through on
vacancy board in the stores. The strengths that external recruitment has are they can get new
or different employees in their organisation which the organisation can gain new ideas from
the new bees applicant and hence, get a wider advantage from them. Therefore, an external
recruitment candidate normally comes outside from the business because they will not be the
favourite one in an organisation or a favourite candidate. Furthermore, external recruitment
covers a large range of job demand and this will help the management in an organisation can
classify on which candidates are suitable for bets position. In order to maintain their pose in
the organisation, employees will work hard to ensure that their pose is remaining in the
organisation. Besides that, employees must be more energetic in their work as per required in
external recruitment. Management must be more conscious in selecting employees as this
process takes longer time period. Therefore, external recruitment is a long-term process and
thus, it requires more time from the human resource management to handle the job
employment in that process as application for the job is large in range. Moreover, the
weaknesses for this external recruitment are it is very costly due to the advertising and
interviews required in this recruitment. Besides that, in times management will face a difficult
time for searching a good employee. Furthermore, to advertise externally regarding the job
vacancy, the management has to bear with the highly cost expenses due to they need to
advertise in majority area in order to inform there are a job vacancy. In other hand, external
recruitment can cause danger between the employees due some of the employees thinks that
they are lost or did not gave them an opportunity. Therefore, sometimes the external manager
or the team leader creates lots of pressure on the employees which can cause the employees
to be stress and misunderstanding among the organisation.
2.4 Summary
It can be conclude that, both internal recruitment and external recruitment has their
advantages and disadvantages. However, both recruitments is relevant and appropriate but the

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Diploma in Business Management

most preferable recruitment to be used is internal recruitment because it is not costly and it
requires less time in selecting process.

3.0 Rewards and Benefits

Rewards are defined as something is given to those who has achieve an excellent
achievement or has been working hard to achieve their goals in grocery retail market
organisation as of Tesco and its competitors as Giant, Aeon Big and Econ Save. These
rewarding areas are very important in big organisation is because to ensure the ways that
allow them to predict exactly what innovations are likely to work on the best and ensuring
that what they are doing now at the end delivers an expected results.
3.1 Methods of Tescos Rewarding

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Diploma in Business Management

As of my research Tesco have several method of rewarding their employees based on

their online tesco-career website as per citation. Tesco have pre-defines their employee
rewards for long terms and short term basis as have been elaborated below.
3.1.1 Pension
One of the best rewards being provided by Tesco for its employee is pre-planning
their retirement period which is a good projection of long term reward an employee can be
granted. This Pension reward would invoke an employee royalty to the organisation and
would ensure employee after working age is planned by the organization he/she is working
for. Added advantage for the reward to the organisation is to reduce their employee turn
around scale.
3.1.2 Colleague Privilege Card
Secondly to catch an employee interest or a new employee to Tesco Organisation is
providing Colleague Privilege Card after six month joining Tesco organisation. The reason
its being provided after a six month period is because an employee would be confirmed as
permanent hire of Tesco Organisation. An employee would be informed during his/her
probation period objective settings by manager of this advantage to encourage employee to
show good deliveries during their probation period.

3.1.3 Personal Health Insurance

Tesco have as well looked into its employee health and concerns by providing them
personal health insurance thats would support their medical expenses and ability to
practice healthy lifestyle. In additional to this Tesco employee they have discounts for
obtaining health/medical services from top healthcare companies in the country including or
dental care benefits. This would earn savings for the employee and lessens the financial
burden.
3.1.4 Supporting Lifestyle
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Diploma in Business Management

Tesco practices well being of their employee as they support their employee lifestyle
by having internal policies. These policies can help the employees find a better balance
lifestyle between work life and home life. Therefore, from saving money with childcare
vouchers, taking off from work for a career break or to extend holidays Tesco have varieties
options to support the employees lifestyle.
3.1.5 Leisure Time
Tesco also has negotiated discounts and special offers that are available entirely to
Tesco employees. The negotiated discounts on theme parks, on a holiday vacation and on
gym membership are available whole year through. This would make the employees leisure
time more happening throughout the year and there are also always special offers for the
employees throughout year too.
3.1.6 Successful Share Schemes
Tesco have also well looked into the employees financially. Tesco ensure that their
employees are well cared or money-wise. Therefore, Tescos policies are where the or not the
employee work for Tesco 3 months or 3 years, Tesco still runs the 3 successful share
schemes which Shares in Success, Share As You Earn and Buy As You Earn. For the share
schemes specification, see Appendix B.

3.2 Example of internal rewards

In order to reward the Best Employee of the year is rewarded base on their time
punctuality to work, being on duty according to schedule and others. Therefore, setting
targets for providing this reward such as meeting more then set target, show initiatives of
sharing ideas for making Tesco a better working place. Besides that, manager should present
the award in public method to honour the achievers and encourage other employees to work
better level. Thus, rewarding for employees should be done every quarterly or 6 months to
ensure their work is approached.
3.3 Summary
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Diploma in Business Management

In order to honour reward to the employee, Tesco organisation should set up a

standard of rewarding system to their employees. Hence, by having rewarding system in an
organisation Tesco will have loyalty employees in the organisation.

4.0 Methods Tesco can use to retain its quality staffs

There are nine ways to retain quality employees which are providing
employees with a clear set of standards before the employee sets foot on the
floor,

providing

comprehensive

on-the-job

training

program,

providing

employees with a genuine role model, provide opportunities for professional

development, provide ongoing feedback, provide employees with appropriate
forums to express their ideas and to voice their concerns, provide recognition
and reward, provide employees with an organizational culture that is open,
trusting and fun, provide open lines of communication and lastly, provide
employees with respect.
4.1 Nine ways to retain quality employees

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Diploma in Business Management

4.1.1 Providing employees with a clear set of standards

Providing employees with a clear set of standards before the employees
sets foot on the floor means that do not make employees in a suspicious mood
on what the employee suppose to do which expected from them. This can lead
employees frustration level to be increased.
4.1.2 Providing a comprehensive on-the-job training program
Secondly, providing a comprehensive on-the-job training program means
that take the time to train up the employees for the each aspects for the retail
business. This might take a longer period of time but this method can ensure the
employees comfort level and provide well trained employees for the business.
Standard training program need to be developed for employee with the
governance to ensure adequate information related to a particular job is
consolidated ensuring employee delivering the correct outcome.
4.1.3 Providing employees with a genuine role model
Tesco can provide employees with a genuine role model which means
selecting a head of the group which will have the responsibility to set up the
expectation of the organisation. Thus, if the selected head wants the employees
to follow the setting of the organisational, he/she must always be responsible to
look after it.
4.1.4 Provide opportunities for professional development
Therefore,

Tesco

can

also

provide

opportunities

for

professional

development which means sending employees for training, motivation or other

types of seminar which will be knowledgeable to the employees and they can
apply in their job.
4.1.5 Provide ongoing feedback
Besides that, Tesco can also use the feedback methods to overview the
outcome of the employees. They can have a feedback box or open door policy so
send feedback verbally to their supervisor or mangers relevant to their
department.
4.1.6 Provide employees with appropriate forums

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Diploma in Business Management

Tesco can also use this method which is providing employees with
appropriate forums to express their ideas and voice concerns. This means that,
organisation is open to get ideas from their employee who is very motivational
and encourage growth internally.
4.1.7 Provide recognition and reward
Tesco

is

recognised

as

global

high

performance

retails

supermarket

organisations. According to moneycnn an online website stated that as being at

level 59 from Top 100 retailer organization in Fortune 500 Magazine 2012, the
organisation must understand the importance of offering awards and incentives
that will recognize, validate and identify the value of outstanding work outcome
by its employee.
Recognition rewards for employee is one of the biggest inspiration that keep
employees motivated and they are alternative effective methods of reinforcing
organization or a company expectations and goals, especially in times when plus
point budgets are low or even frozen due to economy crisis or revenue being
made by an organisation and in some cases promotions are rare for employee
and overall job satisfaction is low.
The rational of recognition rewards is covering several fields of employee and
organisation structure that initiates an organisation to archive a number of
results through this program as mentioned below.

a. This program creates a very positive working environment

b. Build culture of recognition that will be a route for employee to achieve goals
for their affords.
c. This program will as well will drive motivation for high performing employees.
d. Re-enforcing desired working behaviours
e. Increasing an employee morale
f. Supporting organisation mission and values
Six effective recognition reward or program must meet the key essential criteria,
as outlined below.

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Diploma in Business Management

I) Tesco Management Commitment to recognition reward

Managers must commit credible and sufficient resources to any incentive reward. The road to
results begins with resources. Simply put, management backing is the key ingredient.
Managers must dedicate the resources, including the time it takes to plan and execute a
reward. Another point to make recognition rewards successful, managers must delegate this
rewards an authorities to run this program to their employees and supervisors.
II) Link to Bottom-Line
The best outcome for an organisation to be most effective, all rewards must be connected
with the needs and expectations of an organisation workforce, as well as the organisations
overall goals and strategies. The main purpose to have the link to the bottom line is to keep
all the bottom line (employee) directly connected to the results expected of an organisation
and in order to have performance measurements to established using this main key,
employees will not be left wondering the organisation is offering a reward that is so
disconnected from their daily operations or task and the organisation cant achieve their pay
off on its investment in recognition rewards.

III) Recognized Value of Awards to Employees

All Employees must understand the mission of these the incentive reward is being carried out
in their organisation with a trust bond within the employee and employer. Employee need to
be convinced that the method this recognition reward being evaluated is appropriate for the
sacrifices that will be expected in order to achieve the rewards goals. The entire reward
working strategy must be clearly communicated to all parties related to it and engage
employees ownership of the reward for them to work out to obtain them.
Employees must be given a level if opportunity to make decisions and express control over
the rewards direction. If any materialistic rewards are to be rewarded must be valued by all
authorities and perceived as having value, dignity and meaning not obligated to organisation
ethical policy. Reward recognition system begins to weaken when employees start thinking
that their actions are being insulted by insignificant incentives.

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Diploma in Business Management

IV) Equity in Distribution the recognition rewards

The selected employee for the reward must accept as true that the system of recognition is
just and objective created by organisation to reward the smart and hard working employee.
The rewards criteria need to be clearly mentioned for those who have archive them and how
they have achieve to be shared to the department or other areas as it can be a example and
guideline for the rest of employee. This move will show the equality of rewards presentation
including fairness of employee selection from all levels in an organisation structure.
V) Simplicity of Reward
The rewarding prizes and all incentive processed must be thoroughly preserved with a
minimum of administrative effort and work around. It should be kept simple. If recognition
rewards method requires excessive management involvement, financial departments that
require complex process to be in place including sophisticated plans that require exceptional
employee understanding will results of obtained low level of outcome reaching minimal of an
organisation target.

VI) Continuous Evaluation/Improvement

All recognition rewards of an organisation be it the ones which is already addresses in an
organisation and those newly being launched must be continuously monitored in order to
keep them beneficial for both employee and organisation. The recognition reward authorities
like managers, supervisors and leaders need to keep evaluation process continual such as
including this rewards if an employee who have achieve it in a appraisal reviews that is
contributing towards employee career growth and salary increment as these rewards are tied
to employee sacrifices end of the day.
To improve the recognition rewards, manager should do a special review on them as well to
improvise that the rewards are adequate, fair, competitive and appropriate to the affords and
sacrifices of an employee. Run a check on the objectives of the recognition rewards are
being met to have a better change in the organisation structure, process , performance
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Diploma in Business Management

initiatives with more significant better outcome from employee and are the rewards to be
achieved are being communicated to all levels and feasible to be achieved. Recognition
rewards is to appreciate employee which benefits organisation for having increase of loyalty
increasing employee retention for an organisation or decreasing turnovers of high performing
employee. Other benefits of this reward are employee would be positive towards supporting
working culture change and development.
4.1.8 Have celebration for employee
As Malaysia is having one Malaysia goal, organisation should have internal
celebration as Hari Raya celebration appreciating the Muslims, Chinese New Year
appreciating the Chinese believe, Deepavali for Hindus and Christmas for those
who observe it. This would promote the one integrity within the employee and at
the same time with the management of the organisation as well.

4.1.9 Performance Bonus

Tesco must have performance bonus for employee to appreciate their
employee dedication and extra mileage being delivered than their daily job and
responsibility helping their earning and as morale support to encourage
continues dedication and contribution to Tesco. Performance bonus must have
related business key performance index that is achievable and have been
explained to employee early of the fiscal year and follow up is done by employee
together with employer.
4.2 Summary
Overall can be conclude is that, Tesco should use the providing recognition
and reward to retain its quality employee.

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Olympia College, Ipoh

Diploma in Business Management

5.0 Human Resource Management System (HRMS)

According to an online website nmatec stated Human Resource Management System
or Human Resource Information System (HRIS) is an integrated system designed to provide
information used in Human Resource decision making. These are the web-based which
majority of the organisation have used. This is a suggestion for Tesco retailer store for
resolving its human resource management problems at individual, groups and organizational
levels.
5.1 Ways that Tesco can resolve its HRM problems
This bulletin board is an information which is based on the personnel policies, job
posting and training materials which can be accessed by employee worldwide. Therefore, this
is a way that Tesco organisation can standardize their company policy or practises throughout
Tesco group and thus, this will be access able to Tesco employees.
Individual resource management faced in retail organisation as Tesco is regarding the
talent management, where they are facing harder time to fill more specialist job with
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Diploma in Business Management

significant skill at expert levels such as bakers, pharmacist and others. One solution
recommended for these areas is to identify potential employee to have interest in growing in
relevant speciality to go through specialist training in these sectors that benefits Tesco
organization worth of money retaining the staff that have been trained with a bond for a
period of time.
Talent acquisition in Tesco type of industry favours is impacted by several types of
cultural sensitivities and mind set prevailing less attractive as other jobs in IT or managed
services industry with a secured job. Other recommended solution that can be practiced to
resolve Tesco Human resource management problem is to introduce employee to flexible
working hours that benefits them and at same time with no impact to the organisation
business.
5.2 Summary
Thats the suggestion for Tesco to resolve their its human resource management
problems at individual, group and organizational levels.

6.0 Conclusion and Recommendation

In conclusion, Managing People is basically about the development and
implementation of systems in an organization designed to attract, develop and retain a highperforming workforce. Managing People is important in the sense of every organization need
a well-managed workforce to achieve their goals. Therefore, in task 1, the methods of
attracting and recruiting employees, advantages and disadvantages of internal and external
recruitment and strengths and weaknesses of internal and external recruitment has been
explained. In task 2 of the assignment, reward and benefits and methods of Tescos
Rewarding has been explained. Continuously, in task 3 of the assignment methods Tesco can
use to retain its quality staffs and the nine ways to retain quality employees are explained.
Lastly in task 4, Human Resource Management System as a suggestion for Tesco to use to
resolve its human resource management problems at individual, group and organizational
levels has been explained.
Moreover, the recommendations for these four tasks are Tesco should use the Internal
Recruitment methods because it is cheaper than the external recruitment. Ensuring rewards to
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Diploma in Business Management

employee being coordinated well, recommended for Tesco organisation to set standards in
reward the employees, managers should set an objective with their employees. Managers
should have one to one session with their employees to explain and agree with objectives
with the time being set for having appraisal every 6 months or annually. Therefore, managers
should also come up with the training and grooming plan if manager would like to promote
him or her employee. Managers also have to inform or perform two way communications
with employee to achieve the targets and to prepare internal staff for suitable position
internally in a company as the best practices.
Managers have to identify and groom the quality of employees which can be done
from an individual employee appraisal period including the year of service of an employee.
In order to retain quality employees, the organisation must reward the employee to appreciate
his/hers performance. Therefore, managers have to analyst the employee progress as per
his/hers years of services by introducing career development, salary sacraments and
promotion to managerial level. Quality employee should be part of succession of employee in
promotion line, as if there are part of succession planning they would be having sufficient
quality training, daily task familiarity and thus, easy to cope when an employee takes up the
position.
7.0 References
Aminuddin, M. 2011. Human Resource Management. 2nd ed. Selangor: Oxford University
Press, p. 48.
Aminuddin, M. 2009. Human Resource Management. Kindle ed. Selangor: Oxford
University Press, p. 26.
Deloite. 2013. Retail Sector An Hr Point of View. [online] Available at:
http://www.deloitte.com/assets/Dcom-India/Local
%20Assets/Documents/Thoughtware/Retail_Sector_-_An_HR_Point_of_View.pdf
[Accessed: 14 Jul 2013].
Employeebenefits. 2013. Tesco staff awarded 56m in shares | News | Employee Benefits.
[online] Available at: http://www.employeebenefits.co.uk/benefits/share-schemes/tescostaff-awarded-56m-in-shares/102096.article [Accessed: 14 Jul 2013].

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Fitcommerce. 2007. Ten Ways to Retain Quality Employees - FitCommerce.com. [online]

Available at: http://www.fitcommerce.com/Blueprint/Page.aspx?
pageId=794&tabindex=5 [Accessed: 14 Jul 2013].
Global 500 2012: Annual ranking of the world's biggest companies from Fortune Magazine.
2012. Tesco - TSCDY - Fortune Global 500 Top Companies. [online] Available at:
http://money.cnn.com/magazines/fortune/global500/2012/snapshots/7930.html
[Accessed: 14 Jul 2013].
Globalsources. 2013. Tesco Company Profile. [online] Available at:
http://www.globalsources.com/PEC/PROFILES/TESCO.HTM [Accessed: 14 Jul 2013].
HR management. n.d.. Internal recruitment - HR management. [online] Available at:
http://www.humanresources.hrvinet.com/internal-recruitment/ [Accessed: 14 Jul 2013].
hrcap. 2008. Advantages and Disadvantages of Internal vs. External Sources. [online]
Available at:
http://www.hrcap.com/Images/v2/HRCap_Articles/appendix_secured/Appendix
%205.pdf [Accessed: 14 Jul 2013].
Jet HR. 2013. Recruitment - Internal and External. [online] Available at:
http://www.jethr.com/magazine/hiring/recruitment-internal-and-external/article.html
[Accessed: 14 Jul 2013].
Ldoceonline. n.d.. reward - Definition from Longman English Dictionary Online. [online]
Available at: http://www.ldoceonline.com/dictionary/reward_1 [Accessed: 14 Jul 2013].
luc. 2005. The Fundamentals of Employee Recognition. [online] Available at:
http://www.luc.edu/hr/pdfs/eregSHRM.pdf [Accessed: 14 Jul 2013].
msubillings. n.d.. Pros and Cons of Internal and External Recruitment. [online] Available at:
http://www.msubillings.edu/BusinessFaculty/larsen/MGMT321/Recruiting%20%20internal%20v%20external%20hiring.pdf [Accessed: 14 Jul 2013].
Nmatec. 2008. What is HR System?. [online] Available at:
http://www.nmatec.com/hrwise/what [Accessed: 14 Jul 2013].
Tesco Career. n.d.. Rewards - Tesco Careers. [online] Available at: http://www.tescograduates.com/home/why-tesco/rewards [Accessed: 15 Jul 2013].
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Tesco Careers. 2009. Development Programmes. [online] Available at: http://www.tescocareers.com/home/students [Accessed: 14 Jul 2013].
Tesco Careers. 2009. Colleague Privilegecard - Tesco Careers. [online] Available at:
http://www.tesco-careers.com/home/working/rewards-and-benefits/colleagueprivilegecard [Accessed: 14 Jul 2013].

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