Human Resources Management TESCO †Free samples for Students

Question: Discuss about the Human Resources Management for TESCO. Answer: Introduction The employee remuneration for their work is considered as one of the significant fields of human resources management. Every company has its system of remuneration developed that could meet all required condition based on which a concrete company works. However, there are certain issues also associated with the remuneration system developed by the organization. Therefore, the organizations should develop the remuneration policy to resolve the potential issues of employees and organization itself. This particular study has provided a deep insight on the TESCOs remuneration management. The article, TESCO boss Dave Lewis Rings Up 2.9m annual bonus published by Ravender Sembhy in The Scotsman, a renowned newspaper of Scotland in the year 2016 of 13th May in , has mainly focused the remuneration growth of TESCO (www.scotsman.com 2016). TESCO is one of the largest retail organizations in UK occupying a predominant place in retail industry throughout the world. Therefore, the organization tends to change the remuneration system to deal with potential internal issues. Discussion and Analysis Dave Lewis the current chief executive officer of TESCO has received the award of an annual bonus of 2.9m million. After achieving the financial target in the year 2016, TESCO CEO has stated that the extreme hard work of all the employees is the ultimate cause of success. A framework of certain principles runs the approach to remuneration throughout the organization TESCO. The framework includes reward objectives and reward policies. Reward objectives 1. Attract- Enables the company to recruit right people for the vacant position 2. Motivation- They motivate the workers to deliver organizations business goals together 3. Align- TESCO creates shareholder values and helps to achieve business strategy 4. Retain- The employees foster loyalty towards the company thereby others want to remain loyal to the company As per the point of view of Lewis, TESCO has faced innumerable challenges in order to meet the business target. The pretax profit of 162 m for the month of 12 had been compared with 6.3 billion loss. After implementing the diversity management inside the organization, the CEO has dealt with the people of various culture and background. As a result, he had to face major challenges in order to handle the entire situation plan fully. This kind of psychological barriers entirely hampers to meet the business goal. In order to overcome this situation, the CEO decided to implement new plans and policies in the remuneration system so that employees tend to provide their best effort in their services. However, the primary remuneration policies that TESCO has taken so far for satisfying the needs and demands of the employees are as follows: Competitive- HRM department of TESCO tends to assess competitiveness on an overall reward basis. It is observed that rewards reflect an employees role, experience, performance, and contribution. In addition, the rewards for the employees set with the alignment of external market practice as well as internal relativity. Simple-The developed reward of TESCO for the employees are simple and easy to understand. The HRM department of TESCO tends to avoid the unnecessary complexity (Tesco, 2014). Faire- Policies of remuneration are transparent and implemented consistently. The decisions of rewards are effectively government by the organization. According to Lewis, TESCO has made many changes within their business process in order to draw the customers attention as well as to facilitate the employees. Near about three lacks employees are strongly associated with the development of business process in TESCO. Therefore, the CEO has to play a major responsibility to retain those employees at the workplace. Therefore, it is highly important TPF (Tesco Personal Finance plc) tends to operate different groups to evaluate as well as execute some known policies of the remuneration framework. It is observed that the Board of TPF supervises the Remuneration Committee. The board includes four different Non-Executives directors (Farmer, Brown, Reilly Bevan, 2013). The role and the responsibility of the committee are to enhance remuneration policy for Code staff and supervise remuneration management for senior directors. Also, the TPF Remuneration Committee assures that the level and the structure of remuneration are developed to attract , retain and encourage management talent required to run the business in a way that should be consistent with the risk appetite (Easterby-Smith, Thorpe Jackson, 2012). Lewis had become associated with TESCO in the year 2014 from Unilever. After joining as a CEO, the primary mission of him was to enter into the competitive supermarket. The German rivals Aldi and Lidl had been challenged in terms of creating a market demand. As per the policies developed by TPF Remuneration Committee, banks overall aim to assure an effective alignment between the pay and total reward aligning with the risk profile of the company. In addition, the remuneration policy of TESCO indicates that all employees of the organization have some annual objectives and personal development plan (Crombie, 2013). The human resource management of the company often uses the objectives to communicate the necessary level of performance. Moreover, the performance development plan insists on the skills and behaviour to motivate the employee to accomplish their tasks and fulfill the potential (Horvthov Mikuov, 2011). As opined by Collier (2015), Remuneration policy is mainly linked with employee performance. The human resource management of TESCO has developed the remuneration policy as the motivational factor. The HRM considers that employee performance can be developed by providing them with certain benefits. The benefits are both monetary and non-monetary. While developing the remuneration policy, the HRM of TESCO also pays the attention employee performance. Thus, the benefits are added to remuneration policy of the company. It is observed that reward methods are linked to the employee performance at Tesco. For example, TESCO sets certain targets for its employees that encourage the employees to achieve their individual goals. On the achievement of the target, each employee is rewarded with special benefits. It is evident that the employees at Tesco perform tremendously. Apart from the gross salary, some other benefits such as car benefits, healthcare benefits, and security benefits are also added in the remuneration framework. More than three lacks employees would be awarded for their performance. In order to reach the financial target for 2016 the employees have played a major role. As a result, the CEO has decided to reward all the employees for the best endeavor. The remuneration framework developed by TESCO is also based on employee performance. Thus, there have been certain benefits associated with the remuneration framework that can be gained by both employees and organization. The remuneration framework developed by TESCO is tied with the employee performance (Tesco, 2014). The organization has developed the remuneration policy in such a way that helps the individuals or the employees to achieve their individual as well as organizational goals (Sarasa-Maestro, Dufo-Lpez Bernal-Agustn, 2013). The employees are provided with optimal benefits that encourage them to perform effectively. This helps them to achieve the developed goals. Conclusion The article entirely deals with initiatives taken by the CEO of TESCO for managing the remuneration policy regarding the betterment of an organization. It is observed that employee satisfaction somehow depends on the reward and benefits provided by the organization. This particular article is primary based on the remuneration plans and policies of TESCO. As per the statement delivered by Lewis, the article has highlighted the success oeasons of success behind it. As per the point of view of Lewis, TESCO has developed an effective remuneration framework to satisfy the needs of employees. However, there are certain areas that need to be developed properly to develop employee performance and skills. Reference List: Collier, P. M. (2015).Accounting for managers: Interpreting accounting information for decision making. John Wiley Sons. Crombie, N. A. (2013). An Institutional Logics Perspective on Executive Remuneration in Anglo-Saxon Countries. Easterby-Smith, M., Thorpe, R., Jackson, P. R. (2012).Management research. Sage. Farmer, M., Brown, D., Reilly, P., Bevan, S. (2013). Executive Remuneration in the United Kingdom: Will the Coalition Governments Latest Reforms Secure Improvement and What Else Is Required?.Compensation Benefits Review, 0886368713485037. Grant, R. M., Jordan, J. J. (2015).Foundations of strategy. John Wiley Sons. Horvthov, P., Mikuov, M. (2011). Modern System of Employees Remuneration and its Use by Organizations in one of Czech Republic Regions. In2011 Proc. International Conference on Business and Economic Science (ICBES 2011)(pp. 65-68). Sarasa-Maestro, C. J., Dufo-Lpez, R., Bernal-Agustn, J. L. (2013). Photovoltaic remuneration policies in the European Union.Energy Policy,55, 317-328. Tesco, P. L. C. (2014). Annual Report and Financial Statements 2014.TESCO https://www. tescoplc. com/media/417/tesco_annual_report_2011. pdf. www.scotsman.com (2016). The Scotsman - Scottish News. (2016).Scotsman.com. Retrieved 26 June 2016, from https://www.scotsman.com/