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For commencing any business activity, the most important element is manpower. Without human resource, company cannot operate with corporate functions. In modern time, maximum work is carried out through machines but to work upon artificial intelligence also, human resource is required. It is the biggest asset for any organization as without proper manpower skills, firm cannot run business (Ulrich, 2013). They are essential at every level ranging from top level management authorities to lower level workers. In every business entity, human requirement is analyzed and certain functions are performed before appointing people. It is done after having appropriate planning of human demand.
With context to the relevant firm which is TESCO, they require a huge manpower resource as it is a retail firm. Since they involve immense number of departments that begins from operational to service chain, the requirement for human resource also originates at a very large scope (Armstrong and Taylor, 2014). The main reason for human need in stated firm is service sector. It is one of the largest retail chain in UK. Thus, it has to serve a huge crowd of people on a daily basis which is not possible without efficient manpower. Hence, company has to perform recruitment on a regular scheduled basis as and when they launch any new service scheme. Another reason is to manage the operational function by the company. They are commencing business at a very large scale, hence they need to commence human resource planning at a very huge level. This is done so that the work could be managed accordingly with efficiency in results.
Since it is the largest retail market, the planning for manpower need also has to be done accordingly. It goes in a proper systematical and hierarchical manner (Gatewood, Feild and Barrick, 2010). The stages involved in human resource planning process in TESCO goes as follows:
Every company possess different recruitment process according to the working profile in which they deal. Some companies operate at a very large scale thus require dependable and reliable workforce that is selected after a particular process. Whereas in some emerging companies, they simply require workers to carry out their operations irrelevant of their qualifications and profile to which they belong (Anderson, 2009). It is often seen that developing companies hire those people whom they exploit and make the most out of them. This sometime proves to be the negative perception which may go against firm's policy. While the developed organization appoint workers according to their profile and are dedicated towards one single duty. This enhance the quality of work that is carried out.
Comparing such occurrences, the best results can be obtained from two distinct unit working under same industries. Tesco and Aldi can be taken as medium to differ as both the companies are grocery retail chain market. Tesco is the leading firm while Aldi is into the race of capturing market. Their process of selection along with effectiveness can be elaborated very efficiently.
Tesco follows the systematic method of recruiting peoples (Lengnick-Hall and et.al., 2009). They commence the test to judge the qualities of person. It even organizes case study programs and competition as the medium of hiring masses. Once the candidate passed out from the relevant competition, it goes to the second stage.
Effectiveness – This is very effective as it renders quality mass to the company. Company gets good quality of human resources which serves the company throughout the business period and provide desired results with efficiency.
On the other hand, since Aldi is a developing company, they hire people irrelevant of their profile. It often targets those people who are in search of jobs and are ready to works even at low remunerations.
Effectiveness – It is effective just as it provides workforce at cheap cost. The selection process thus at Tesco is quite good and competitive while Aldi hire people for the sake of increasing labor workforce to carry out operations of business at a large scale (Khan, 2010).
Motivation is the process of boosting the morale of an individual or a team to perform a particular activity with more energy in order to come out with enhanced results. This method often proves useful as a person feels superior by getting-noticed among his overall staff. On the other hand reward is also a method of motivation only but it includes certain cost to the company. Under this method, the person is not only praised for his deeds but is also paid for his cause towards attainment of objective (Assess the link between motivational theory and reward, 2014).
There are numerous theories proposed for such objectives which are directly related with the appraisal to staff. Out of them, Maslow's need hierarchy theory and Herzberg's theory are most comprehensive. Maslow's theory suggested five levels of human needs which employees desire to fulfill in their entire lifetime of service. They are more influencing towards rewards rather than motivation theories (Dezdar and Sulaiman, 2009). It prescribed that reward is the best way too motivate employees. Under his approach the levels mentioned are:
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Physiological needs – It includes basic human needs which are food, water and other amenities.
Safety requirement – Job security, resources optimization and health are covered under the following factor.
Personal needs – Intimacy with family and affection are place in this category.
Esteem needs – This involves achievements, respect and designation under corporate environment.
Self actualization – It is the top most need that comprises highest authority, creativity and problem solving responsibilities (Chen and Huang, 2009).
Herzberg on the other side signifies only two factors which are moral environment support and motivational factors. No cost of service is applied under this approach. Manager who are in support of this theory often neglects monetary factors and emphasizes more towards morale enhancement through designating authorities and promotional techniques (Chen and Huang, 2009).
Tesco is the best example of linking these theories because they include both the approaches under their portfolio. For highly designated employees, they adopt Herzberg theory sa they are financially satisfied. For lower level worker, they follow Maslow's approach where they provide them basic amenities to survive and get satisfaction (Collings and Mellahi, 2009).
Job evaluation is a method of determining the worth of a job in context of the results they are obtaining. In the following topic, determination of pay scale is also treated as part of job evaluation where after evaluating the status, salaries are allocated to individual at the described company (Kallunki, Laitinen and Silvola, 2011). The process of evaluating work goes as follows:
Job analysis – It is a method by which the information required from each department is taken and is analyzed with the desired objectives. This is done on the basis of few criteria which includes:
Job description – The profile for job is prepared comprising of roles, responsibilities and duties to be performed by the respective candidate.
Job specifications – It is concerned with the necessary skills and qualifications required by the person to get selected for the particular designation (Tabassi and Bakar, 2009).
Job rating – Under the following technique, job are ranked according to their worth. The method for evaluating each job remains constant to get the best and fair results. At Tesco, this is done through ranking, point rating method and many more.
Job classification – It is the last step to evaluate job. Under this technique, jobs are classified according to their profile and ranks. With respective classification, employees are hired according to their qualifications. This creates a systematic chain of designations at concerned organization (Bloom and Reenen, 2011).
Pay scale determination – According to the different jobs availed by person in company, his pay scale is determined. This is done to make difference in jobs at various levels which is practiced at Tesco.
Monetary incentives always prove to be useful in every organization as people tend to work for the sake of money only. It is observed that financial reasons are more taken into consideration as compared to other non monetary factors (Dimov, 2010). Its value can easily be justified with support of the following reasons:
Employees are more dedicated towards financial matters. They are ready to work and give the best efforts for the sake of money. They are oriented to achieve monetarism. In order to earn money, they can work over their potential which is beneficial from the company's perspective.
Workers feel more superior than before as other than financially appreciation, he also feel praised among other peers. For the sake of more incentive, they tries to put more effort which in turns proves beneficial for the respective company (Bozionelos, 2009).
Other staff members also gets into race of gaining monetary rewards. This leads to enhanced working environment in corporate world. By providing financial rewards to any employee working at Tesco, they get an opportunity to obtain results which carries more value as compared to the amount of incentive paid to them (Bozionelos, 2009).
Appraisals are given after judging the performance of employees. On the basis of their efficiency levels, they are given rewards both in monetary as well as non financial terms. In every company, employees are examined on certain parameters and then only they are justified to be reward holder (16 ways to measure employee performance, 2015). Some of the factor which are considered while analyzing performance includes:
Service criteria – The amount of service they have provided and number of clients handled by each individual is one method of judging employees performance which is practiced at Tesco.
Quality feedback – The satisfaction level perused by clients with service of each worker is noticed under feedback service. It is also one of the process adopted by concerned company. It is one of the biggest factor that helps Tesco while providing rewards (Molenaar, Park and Washington, 2009).
Creative innovations – At retail sectors, there are immense opportunities for developing and implementing new ideas. Workers are welcomed with different approaches in techniques to enhance sale figures. Observing their progress, their ideas becomes the trend for which concerning employees are highly appraised.
Regular tardiness – At Tesco, punctuality is very much measured. Since it is a retail sector, it require regularity of people to provide their services. Those who are regular in their work with complete attendance over duty, they tend to be the reward holder which boost them to become more punctual in the future course of performance (Cummings and Worley, 2014).
Management by objectives – Targets are given to each individual to get completed over a given period of time. When they successfully attain the objective with efficiency in results, they are classified under reward taking category. It is the main theory proposed under given organization to enhance working (Cummings and Worley, 2014).
Adhere to policy – It is one of the biggest factor while judging out the employees to monitor work performance. Companies like Tesco are very strict towards their rules and regulations (Bozionelos, 2009). Employees who follows the regulations made by the company on a regular basis are more shifted towards the positive aspect and are motorize to promotional activities.
Self grooming - It is often observed that some employees have their perception to groom themselves with point of time. Such people deserve great heights as they tries to contribute with their best efforts. It proves to be beneficial from the context of both, employees as well as the organization. These kind of people are transmitted to higher level of authorities in a quick mean of time (Dimov, 2010). This is because they possess skills to upgrade the level of company which is highly appreciable by Tesco.
Employees are referred as the back bone of company where he works for the welfare of the firm. But every company at one phase of its working tenure has to undergo procedure to terminate employees in order to make sustainability in the organization. There are several reasons for the company to cease the worker (The reasons for job termination, 2015.).
Some of the factors may involves:
Economic inefficiency – Although multinational companies works at a very large scale but they also gets affected by the economic crisis. During deep depression in the external market, there might be a possibility by the company to suspend its workforce in order to sustain its financial position. Under such conditions, employees have to suffer a lot due to their negligence by the organization.
Non punctuality – If it is found that any employee is very frequent in taking leaves and fall short of attendance at his workplace, then it also may leads to termination from job. It is highly practiced at Tesco as it is a retail sector and requires workforce every time (Gallicano, 2009).
Non performance – When any individual fails to generate the desired results while performing any activity, it may cause cessation in his employment from the relevant company. Even by vesting sufficient time and resources, if it fails to produce results then he may be terminated from job. This leads to failure in planning process of the concern person which in turn leads to loss for the company too.
Misbehavior – It is the most unethical deed that is not tolerated at every reputed company. Similar it happens at Tesco also. People who are not good in their attitude and are ill mannered, then they are not accepted in the company's associated workforce. They are rejected at a glance that lead to their cease in employment (Gallicano, 2009).
In large scale operating firms, management can not terminate any employee all of a sudden. They have to follow a legal procedure and carry out the process in a systematic manner. In case of any default from the company's side, they can also be punished legally by the consent of terminated employee (Jensen, Sandström and Helin, 2009). Discussing the process of termination at Tesco and comparing it with Aldi, they are quite similar in nature but are not identical. The method goes as follows:
At the prior stage, employees are analyzed on the basis of few parameters. Those factors may includes behavior, at equates, attendance and most importantly his performance. If any person satisfies on all the platforms with efficiency then he is entitled for the reward but if he fails to stood thorough in them, then it may be a cause of concern to them. He may be rejected from his job. Hence a performance chart is made. It is practiced in both the organizations (Dezdar and Sulaiman, 2009).
After judging performance, if any worker has to be rejected then he is given a warning to improve. This is a chance availed by the concerning employee to make changes in the lacking activity. This is not done at Aldi but is induced at Tesco (Armstrong and Taylor, 2014).
In case of future arising of the similar obligation, he is given a prior notice for leaving the job. These are the final instructions which has to be followed by the employee. He can not argue over them. A notice is given to facilitate the worker for survival till the next job opportunity is prevailed by him. This is also performed at both the companies (Dezdar and Sulaiman, 2009).
Finally employee is terminated and all his dues are paid to make the company free from all his duties. This is done to avoid future claims by the candidate over reputed firm. Similar practice is performed at Aldi as well as Tesco as both are globally reputed organization (Armstrong and Taylor, 2014).
While terminating any employee, certain legal frameworks need to be accessed in order to justify the constitutional act (Tabassi and Bakar, 2009). The major legal activities that are included under the employment cessation are as follows:
Subjective legal facts are taken into consideration. Those legal compliance consist of the following regulations where there should be:
Official or lawful virtues could take place where employee gets bounded to lave the organization without any prior warning. This may be:
Legal facts or non controllable activity may also contribute in the termination of employment. Briefing them as:
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