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Understanding Organisations and The Role of Human Resources

Introduction to Understanding the Role of Human Resources

Human resources are the asset of organisation as they help in achieving the objectives and goals. This deals with all the issues that are faced by an enterprise at the time of managing all people. There are some actions which are performed by HR manager such as recruitment, selection, employee relation, training and so on. The present report is based on Tesco which perform their operations in retail sector. They are managing their all staff members by identifying the issues that are faced by them at the workplace. In this context, it explain the purpose, goals, customers and services that are offered by an entity. Along with this, it focuses on different functional areas that how they perform in an efficient manner.

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Task 1

1.1 Explain the purpose and goals of an enterprise

Tesco is an organisation which perform their operations in United Kingdom and it was established in 1919. It is public Ltd company which is listed on London Stock exchange and it is a constituent of FTSE 100 Index. Tesco is a multinational company as it is operating in 11 countries. It is operating in the retail market and performing good at the global level so that they will be able to earn their profits and increase their market share. There are approx 476,000 employees are working in the firm so that they will be able to offer quality services to their customers. It provide their products to Asia, Europe, Ireland, Malaysia and so on. So, in this manner their overall brand image is good than their competitors. The vision, mission and objectives of Tesco...

Vision

In the vision statement of Tesco, they are focusing on some elements such as to serve quality services to the customers, community, loyal employees and shareholders.

Mission

The mission statement of the retail industry is “ we make what matters better, together. This is the core purpose of company and on the basis of this they will be able to enhance their performance. Business objectives: There are some business objectives and aim of the company and some of these are as follows...

  • To offer the quality services to customers so that a strong base of consumers can be created.
  • To achieve the competitiveness in market as compare to other competitors so that overall brand image can be improved.
  • To provide a peaceful environment to the staff members so that they feel satisfied while performing their operations.
  • To increase the market share and achieve the profitability.

1.2 Describe the products, services and customers of Tesco

There are some products and services which are offered by the company to their customers so that they can fulfil their demand in an efficient manner. Tesco offer their products into different areas such as clothing, books, furniture, electronics. But the core products of the company are Food and drinks. Along with this, they offer some telecommunication services to their consumers so that the firm can attract number of people towards their services. The retail company also offers services to their end users via online store so that people can save their time at the time of purchasing. Basically al other product ranges grew alonside with the Tesco core offering which was food and drinks.

Tesco also uses segmentation approach in order to divide the market as per their choices. Through this, the firm can target their audiences and offer them services so that they can fulfil their demand. Demographic and geographical segmentations are used by the company. In demographic, the firm divide the market on the basis of age, gender and in geographical the market is divided on the basis of area or location. So, in this manner an entity can increase the satisfaction level of their different users. Tesco basically targets households. The age mark which it uses is between 15-70 years and the income group is low, medium and high. With geographical changes the company has to adjust its plans and policies. It impacts the company finances.

Tesco perform their activities or operations in a manner so that it can satisfy the needs of customers. Its prime mode of operations is business to customers. This helps the company in earning higher profits and revenues.

1.3 Explain how macro factors affect the business activities of Tesco

There are some external factors which can impact the performance of an enterprise. These factors are uncontrollable so company needs to manage their operations as to achieve competitive advantage in the market. For this, Tesco can conduct PEST analysis so that they can identify their strategic position. These factors are...

Political

When an enterprise perform their operations at global level then these factors can affect their performance. Some of these factors are related to tax rate, political stability, legislations, foreign trade and so on. When VAT rate is increased then this may negatively impact the Tesco and due to which overall customers spending level is get reduced.

Economical

These are related to the interest rate, inflation, employment and so on. When overall economic growth of country increases then it leads to better growth of companies gets improved. When recession occurred then due to this unemployment rate is increased and this highly affect the profitability of Tesco.

Social

These are related to the choice, interest, demands of the people. Company have to look upon the changing behaviour of their end users so that their satisfaction level can be increased. Now, People are more health conscious which will change their choice food. To overcome this situation Tesco need to provide range of healthy foods to the people.

Technological

These are related to the advancement in technology and innovation in the products. By adopting the technological change, Tesco can enhance their performance in the market as compare to their competitors. For example, service users can purchase the products from companies online store and through this they will be able to get the services at their home.

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Task 2

2.1 Describe the organisational structure and its different functions

Every business organisation perform their operations in more efficient manner so that they can achieve their objectives. For this, they are using an organisational structure so that overall roles and responsibilities can be fulfilled. Here, Tesco uses flat hierarchical structure in which number of levels are less in between top executives and employees. This can be considered as a hybrid structure as the flow of communication is smooth but the flow of orders is still in a hierarchy manner. Manager has to perform their role in an effective manner so that their overall understanding among the people can be increased. There are some advantages of this structure as communication and relationship gets improved between the different people at different level. The flow of communication is improved as the employees are able to transfer information to the top level managers. Through this, effective decisions can be made that are helpful for an enterprise in achieving their goals. The decision making in the company has improved. When the managers have right information at right time they can take decision in a short period of time.

There are some functional areas of Tesco such as finance, human resource, marketing and production. On the basis of these, overall performance of retail industry can be improved at the global level. These are...

Finance

This department deals with accounting, organising, auditing and managing the companies finance. An accountant has to make the balance statement, profits and loss account so that overall financial growth can be enhanced. In Tesco, finance department takes care of the salary and wages given to the employees. Also it has to keep track of the expenses and income of the company.

Human resource

This functional area is responsible to manage all people who are working at the workplace. HR manager is responsible to recruit the right person for the job, manage their salary and leaves. The HR department main role is to maintain and strengthen the human resource capabilities in Tesco, so that the company is able to achieve its goals and objectives.

Marketing

This department is responsible for performing some of the marketing activities so that overall brand awareness can be increased in the market. By performing the promotional and advertisements, a two communication can be established between two customers and enterprise. The marketing department ensures that they are able to promote various products and services of the Tesco in the market.

Inventory management

This is the department which ensures that the company have sufficient amount of products in storage as to fulfil the super markets needs. This helps Tesco in reducing uncertainities.

2.2 Explain how different functions work together in enhancing the performance of organisation

All the departments are connected to each other and their operations are depends upon the activities of other functional area. These are as follows...

Marketing department

This department make some strategies so that overall sales of Tesco can be increased. This is linked to other areas such as finance, HR and production. The accountant is responsible to make the budget for promotions, HR manager motivates the people so that their performance can be enhanced. The needs are identified by marketing manager and on the basis of that products are manufactured.

HR department

This functional area is responsible to provide training to their staff members and manage the salary structure of each individual. Through, marketing activities new talent can be attracted and finance department have to offer salary on time so that their overall satisfaction level can be increased.

Production

This department is responsible to manufacture the quality products so that the satisfaction level among the different people can be increased. Operational manager has to manufacture the services as per the needs of the staff members that is identified through marketing survey. Finance department set the price of particular products.

Finance

On the basis of survey, current trends in the market can be identified so investment decisions can be made. Along with this, the budget of particular project can be set so that spending level can be controlled.

2.3 How culture of an organisation affect its operations

Organisational culture is based on the values, beliefs of people which explain that how they have to behave. There are some dimensions which play a vital role in order to form a culture such as innovation, outcomes, teamwork, aggressiveness and so on. It is the combination of different factors such as power, people, task and role. Cultural factors impact the employee morale to a great extent. It is a decisive factor which sets up a person attitude and perception. Culture is very different from organisation structure, it is about the values and ethics which are followed by an individual. Through these factors, the overall performance of Tesco can be improved at the marketplace.

When an enterprise follow an appropriate culture then through this, employees motivation and their satisfaction level can be increased. When this get increased then manager can retain their staff members so turnover and absenteeism can be reduced. Through this, overall productivity can be increased and that will lead towards the high market share and revenues. By adopting effective pricing strategies so that customers are get attracted towards the services in more efficient manner. Also the employee turnover rate will drop as the workers will be motivated to do the job and stay loyal to the organisation.

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Task 3

3.1 Describe how HR activities support organisations strategy

There are some human resource activities that are performed by Tesco at their workplace as through this the overall performance of the company can be improved in more effective manner. These activities are like...

Training and development

By providing the training to their staff members, they will be able to enhance their skills, knowledge and experience. Through this, they can offer quality services to their customers in more effective manner. Furthermore, all people will be able to get the peaceful environment so that organisational goal can be achieved.

Employee relations

This is an important activity of an HR department. It helps in ensuring that the relationship between employee and management. The relationship among all the workers should be improved so that overall growth of the firm can be enhanced. For this, leaders can give the tasks to the people in a group so that communication gap can be reduced.

Performance and reward

The incentives and rewards system in Tesco is based on the performance of the employees. The HR manager has to record each and every achievement of the employee as to ensure that they are rewarded in a proper way. Along with this, wages should be given to them as per their performance so that overall growth can be enhanced and objectives can be achieved.

3.2 Role of HR manager in supporting the line managers and their staff members

The HR manager of Tesco has to perform some of their roles so that overall human resources can be managed in more effective manner. Some of these roles are as follows...

Communicate the information

It is the responsibility of manager to communicate the accurate information to the employees so that their overall understanding can be increased. Through this, they will be able to performance their operations and activities in more efficient manner. The HR manager assist the line manager by providing proper authority and mechanism to get the desired information from employee's.

Employee engagement

The HR assist the line manager in engaging with employee's. Line manager is the one who have to communicate with the workers while supervising them. He is backed up by HR manager by authority, policies and framework. Proper employee engagement reduces the chances of conflicts and disputes.

Advice

The HR manager can also give the advice to the people that how they can perform their operations in more effective manner. Through this, staff members will be able to know that how they can achieve specified goals.

Conclusion

From the above carried out analysis it has been concluded that human resources are very vital resource for the company. It is the most dynamic force which can help the organisation in achieving goals and objectives in the most efficient manner. So, it is the responsibility of manager to manage overall activities that are conducted at the workplace. Every firm established their business on the basis of particular objectives and goals. HR manager of Tesco uses some of the strategies such as training, rewards so that their overall satisfaction among the people can be increased.

References

  • Armstrong, M. and Taylor, S., 2014. Armstrong's handbook of human resource management practice. Kogan Page Publishers.
  • Boon, C and et. al., 2011. The relationship between perceptions of HR practices and employee outcomes: examining the role of person–organisation and person–job fit. The International Journal of Human Resource Management.
  • Boxall, P. and Purcell, J., 2011. Strategy and human resource management. Palgrave Macmillan.
  • Bratton, J. and Gold, J., 2012. Human resource management: theory and practice. Palgrave Macmillan.
  • Budhwar, P.S. and Debrah, Y.A. eds., 2013. Human resource management in developing countries. Routledge.
 
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