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Introduction
In this report, a major HR management issue (recruitment and selection procedure) from Tesco has been selected. This report includes a brief description about the company Tesco. The recruitment and selection procedure of the company has also been discussed in detail. The advantage and disadvantage of the issue has been analyzed for the company Tesco. The recruitment and selection procedure of the company has been compared with another company McDonalds. In addition, it has been explained why the recruitment and selection procedure needs improvement. At the end, some recommendations have been provided so that the recruitment and selection procedure of the organization can be improved.
Tesco is a British merchandise retailer and a multinational Grocery store. The company was founded in the year of 1919 in London England (Tesco 2016). In terms of office, the company is the third largest retailer in the world. The company has stores in more than 10 countries across Europe and Asia. It is considered as the market leaders of UK (28% market share). It has been found that, there is more than 470,000 employees work in the organization till 2016. The total revenue of the company is £ 54.400 billion (Tesco 2016). The UK based grocery retailer has become geographically diversified during the early 1990s. It works in areas of retailing such as clothing, furniture, electronics, software, petrol and toys (Tesco 2016). In 1990s the company repositioned itself and becomes the company that appeals to a diversified group. The product ranges from “Tesco value” items to “Tesco finest” range. During 1990s the company had 500 stores all over the world. Now the company has 2500 stores all over the world (Tesco 2016).
The company has various subsidiaries such as Tesco store Ltd., Tesco Kipa, Tesco Ireland, Tesco Mobile, Spenhill, and Giraffe Restaurants. In the year of 2001, the company started to get involved in internet marketing in USA. It has gathered 35% share in Grocery works of USA (Tesco 2016). In the year of 2002 the owners of Tesco has obtained 13 HIT hypermarkets in the country Poland. In the year of 2003, the company has purchased C two Network in the country Japan. In the year of 2010, the company has made a record profit of 10.1% (£ 3.5 billion). It has been found that the company is planning to develop 16,000 new job opportunities out of which 9,000 will be in UK (Tesco 2016). In the year of 2014, the company has lost some part of its appeal for its potential customers. Due to some misreporting, more than £2 billion was wiped out from the stock market value of the company Tesco. It had been found that in appropriate recruitment and selection of employees has caused this trouble for the company. For this reason, the company had suspended 8 of the executives.
The main issue related with recruitment and selection procedure of the company is that, Tesco largely depends on internal recruitment procedure. The company has developed a talent enhancement program to improve skills of employees who want promotions. However, discrimination can be found in the selection and recruitment procedure. It has been found that, the company is more inclined towards peoples of the UK. Race, culture, religion and belief have become a major barrier in the selection process. The management of the company recruits less qualified people depending on their cultures and race. It affects the overall performance of the organization. More over it has been found that the external recruitment adopted by the company is very costly. For this reason, the company has to develop a recruitment system, where candidates are selected on the basis of their qualification and performance rather than their race, culture, religion or beliefs. The company also has to develop a cost effective external selection procedure. The recruitment and selection procedure of the company has been discussed below in an indepth manner along with its advantages and disadvantages. In addition, the selection and recruitment procedures of the organization have been compared with that of McDonalds.
Wel (2016) mentioned that Tesco is one of the largest private sector employers that operate more than 13 countries all over the world. The store based and non store based activities are increasing for the company Tesco. Stari?eca (2015) stated that, in order to achieve the business objective, the company has to make sure that, it has right amount of employees in the right post. For this reason, the company has to develop a step-by-step approach to select and recruit employees for both operational and managerial roles. Stan and Vermeulen (2013) mentioned that, in order to meet future needs, the company Tesco has to develop appropriate workforce planning. The management of the organization has to select appropriate employees in accordance to their skills, numbers, qualifications and locations.
Sayce et al. (2012) stated that recruitment is the method that can help an organization to analyze which department requires new employees. It has been found that the company Tesco uses various methods to advertise vacancies. Russell and Brannan (2016) stated that, the recruitment process of the organization depends highly on the availability of job. It has been analyzed that the company Tesco highly depends on the “Internal Talent plan” program to fill the posts. With the help of this program the company considers the list of workers who are looking to move or for promotion. The company uses internal advertising within the intranet (Rothwell et al. 2012). It has been found that Tesco job vacancies are posted in the official website of the company or in the external recruitment board.
When an applicant is applying for any managerial position via online, then the applicant must need to go through an online interview. After that, the selected candidates have to attend the assessment center of the company Tesco for the selection procedure. However, in order to apply for store based jobs, all candidates must have to be registered at the Job centre Plus (Plestant et al. 2014). Depending on the number of candidates required, the company develops a waiting list of applicants. In the instance of availability of vacancy, they call the waiting applicants and ask them for to appear interview. In addition for more specialized job roles, such as pharmacists and baker, the company uses external recruitment strategy. In this case the company uses media such as Television and Magazine.
Miragliotta and Errington (2012) stated that, selection procedure can be defined as the method to select the best candidates from the list of applicants using job description and job specification. It has been found that screening of candidates is one of the most important aspects of the selection procedure. Martins and Diaconescu (2014) mentioned that screening procedure helps the company Tesco to make sure that all the selected employees have appropriate qualification in accordance to the job requirement. At the initial stage, CVs of all applicants are summarized. Their job experience is also examined cautiously by the HR department of the organization. In addition, the company also provides the job type that matches on careers on the web page. It helps the company to find out whether the qualification of the listed candidates fit with the job requirements or not (Mankikar 2012). The candidate who passes the first round of the interview and screening procedure is invited to a second round interview. On successfully clearing the second round of the selection procedure, the candidate is provided an offer letter and a contract from the company. Mahapatra (2012) stated that the assessment centre of Tesco organized at various stores of Tesco and operated by the manager of the store. In the assessment center, various trainings are also provided to the newly selected candidates and these include team working and critical problem solving. Kundu et al. (2015) stated that, these trainings can help the new recruits to deal with real life problems at workplace.
The company Tesco always tries to find out the most cost-effective approach to attract most qualified and skilled and experience peoples to their company (Heneman et al. 2012). However, it has been found that advertising in TV and magazines is not very cheap. However, it can help the company to select right people. However, to cut the cost recruitment, the company highly depends on internal recruitment process. The management always tries to select employees within the organization for higher posts as they require less training and orientation. On the other hand, there are some advantages of external recruitment procedure. For example, new people can bring new ideas and perspective to the organization.
Certain major issues related with the internal and external recruitment process of Tesco has been analyzed in this study. In case of internal recruitment, it has been found that the number of applicants is limited. In addition, the management is already familiar with the strengths and weaknesses of the applicants. Han (2014) stated that trainings cannot improve the weaknesses of an employee after a certain limit. Due to internal selection procedure, the company is not being able to gain new perspectives and ideas from outside of the organization. In addition, recruiting form inside of the organization will create another vacancy that has to be fulfilled (Furnham 2012).
On the other hand, it has been found that external recruitment process adopted by the organization is not cost effective due to advertising and longer process of selection. It has been found that external section process of the organization is not efficient enough to select the best applicant for the job.
It has been found that there are certain amount of discriminations can be found in the internal recruitment process. The management prefers to recruit candidates from UK irrespective of their qualification. The company is less inclined towards recruiting Muslim candidates. This recruitment and selection system of the company Tesco has to be changed. The company has to select candidates depending on their skills, talents, job experience and qualification rather than their religion, geographical location, values, belief, race, gender or cultures (Edelson et al. 2014)
It has been found that McDonalds is one of the largest employers in the world (McDonald’s 2016). In this company employees are paid on hour basis. They are known as “crew members.” It is their job to prepare and serve foods to the customers in accordance to their demands.
For these hourly paid employees (crew members), the company has developed a two step selection procedure. At the first stage all candidates have to go through psychometric test. After that they have to go online and fill an application form (Bolander and Sandberg 2013). At the next stage, all the selected candidates are asked to come to a restaurant for an on job experience (OJE). The major goal of OJE is to analyze the customer handling skill of the customers. Cheng (2014) stated that, it also helps the management to analyze the team working capability of the candidates. It also allows candidates to examine whether the working condition of McDonalds suits them or not. In the next stage, all the selected candidates have to work in the customer facing areas for a 2 days assessment. It this assessment, they are given the full assessment on what they actually have to do at their work. An overview of the company is demonstrated. In addition, the management also gives final decision about candidate selection.
After hiring new crew member, a welcome meeting is organized in order to demonstrate their behaviors and skills. At the final stage the candidates have to go through a food safety and health safety test (Bolander and Sandberg 2013).
It has been found that the recruitment and selection procedure of McDonalds is more appealing than Tesco as the company offers employees with many rewards and benefits (Cheng 2014). The company provides better working condition (less discrimination) that motivates workers to work more efficiently. The management of McDonalds tries to select employees on the basis of their experience and skills. In addition, it has been found that the selection procedure of McDonalds is very easy that helps to save a lot of time and effort of the organization
In addition, there are some issues or drawbacks of the selection and recruitment process have been found. It has been analyzed that owning more rewards increases the cost of the selection process of the company. Secondly, there is no internal recruitment system like Tesco. It decreases the opportunity of promotion for employees. For this reason it has been found that most of the employees work in McDonalds for a very short period of time.
It has been found that both the companies have effective recruitment and selection policy. The company McDonalds believes that all employees have a vital role in the company. If every employee of the organization can play his or her role effectively then the company can achieve success easily. The aim of the organization is to recruit best people and engage them with the company using attractive offers and incentives (Cheng 2014). On the other hand, the company Tesco believes in a strong organizational structure. The management of the company tries to develop a strong workforce for the business operation. The company has developed a user friendly method to apply for a job. The company Tesco has a consistent approach to recruitment and selection (internal and external recruitment and section process). However, it has been found that the recruitment and selection process of Tesco is more affected by discrimination than McDonalds.
Conclusion
In this assignment the recruitment and selection procedure of the company Tesco has been reviewed. The issues related with recruitment and selection procedure of the company Tesco have been analyzed. It has been found that discrimination and less cost effectiveness are the two major issues that the selection procedure of Tesco is facing. The comparison of the selection and recruitment procedure between Tesco and McDonalds has been provided in this assignment as well. Depending on the analysis, some recommendations have been given suggested for future improvement of the recruitment and selection procedure of the organization Tesco.
Recommendation
Depending on the above analysis some recommendations have been provided for the company Tesco. They are mentioned below:
The company Tesco has to develop a separate selection and recruitment team. The team will directly report to the managing director of the region. This team has the full authority to handle the internal and external selection procedure of the operation. The team will be developed with people from diverse cultures and regions. They will select employees on the basis of their skills and talents rather than their culture, region, race and belief.
The company has to develop an online application system. Due to developing technologies and increase of internet use, online application will be able to attract more talented people towards the company. The company needs to provide appropriate job specification and description of the job on the web page so that the company can select right person for the right post.
In order to attract talented and skilled employees towards the organization, the management of Tesco needs to provide attractive offers and incentives to these employees.
References
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