Human Resources Management in Business
Today, I will describe the internal and external factors to consider when planning the human resource requirements of Tesco.
Tesco is one of the major retailers in the world. They function in 14 different countries around the world. Some of them are UK, Slovakia, China, India or Hungary. Only in UK Tesco employs 300,000 people in over 2,900 stores. Tesco sells different ranges of product; groceries, clothes, furniture, technical equipment and many more. Whoever wants to shop at Tesco doesn’t have to even leave the house to do it. They offer online shopping option so customers can buy their everyday shopping and get it delivered usually the same ...view middle of the document...
Some new services will need a new, experienced employees where some of them will require the existing staff to be trained. An example could be when Tesco has started to offer their own mobile network. They did not have people specialising in this services as they didn’t used to offer this type of services before. What they had to do was employing new workforce; people which already specialised in creating and providing mobile networks.
* New markets, targeting different buyer groups
If a company like Tesco is planning to expand their services in new markets and target different buyers groups they need to plan the workforce in advance. For example when the firm has decided to expand their businesses and open new stores in China they knew that the products they will offer will be different from the one offered in UK.
They also had to think about employing people living in China. It was not a good idea to move UK employees to China. First of all they had to remember that not many existing employees of Tesco would know Chinese language and second of all it would be much more expensive to employ UK people than Chinese. Decision to expand the business is an internal factor because it’s what the organisation has chosen to do and they have a full control over the changes. Also, targeting different buyer groups will not look the same in every country. When targeting potential buyers in China Tesco had to use different methods than they do in UK. It’s mainly because all of the cultural differences. This is why they had to plan to recruit new people who know a lot about the Chinese culture and would be able to effectively target different groups of customers.
* Technological changes e.g. internet, call centre staff
Fast changing technology is another example of why companies like Tesco might need to plan their HR in advance. Adapting technology in their services means that fewer staff might be needed, different staff might need to be employed or an existing staff might have to be retrained. A good example are self-service tills introduced in Tesco few years ago. This means that many customers will not need a cashier anymore and this is why the company will need to terminate contracts with many employees.
* Cheap international labour
Cheap international labour is also one of the aspects why companies might need to change their workforce. Tesco has moved some of their call centres to India. This enabled them to save more money and increase the profits however this has caused people working in call centres based in Britain to lose their jobs. This is where Tesco had to plan their workforce very carefully.
It is very important for every organisation to assess the skills of the current workforce in order to be able to plan any future training, experience and qualifications needed by the employees. Tesco keeps changing the nature and type of work as the online services keep becoming more popular. The changes in the...