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BACHELOR THEISIS
Human Resource Management and its alignment to the strategy of a Company
Alexander Litvinov
Unicorn College
Prague 2012
Zadání
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Abstract
This thesis addresses the problem of Human Resource Management and its alignment to
the strategy of a Company. First, the theoretical background of human research
management is explained. This section includes the historical development of HR, corporate
cultures, motivation as well as strategic management principles. The second part of this
thesis focuses on the analysis of a chosen company – Tesco stores ČR plc. The company is
firstly introduced and then analyzed with the main focus on the employees of the company
and the HR department. Mainly qualitative analysis is used to gather the needed final
information and conclusions are consequently made from that. The overall goal of the thesis
is to show how Tesco stands as an employer.
Key words: Human Resources, management, strategic management, employee treatment,
motivation, corporate culture, Tesco
Abstrakt
Tato bakalářská práce se zabývá problematikou oddělení lidských zdrojů ve společnosti a
jeho zařazením do celkové firemní strategie. Nejdříve jsou představeny a vysvětleny
teoretické poznatky ohledně práce s lidskými zdroji. Tato část obsahuje historický vývoj
řízení lidských zdrojů, firemní kultury, motivace a také principy strategického managementu.
Druhá část práce obsahuje analýzu vybrané společnosti – Tesco stores ČR. Společnost je
nejdříve představena a pak analyzována s hlavním zaměřením na zaměstnance společnosti
a oddělení lidských zdrojů. K získání potřebných informací je použita převážně kvalitativní
analýza a z daných dat jsou následně vyvozeny závěry. Celkový cíl práce je zobrazit jak si
Tesco stojí jako zaměstnavatel.
Klíčová slova: Lidské zdroje, management, strategický management, přístup k
zaměstnancům, motivace, firemní kultura, Tesco
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Declaration of authorship
I hereby declare that I have written this bachelor thesis on my own and that all used resources are listed and proper references are made.
…………………………
Signature
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Acknowledgment
I would like to express my gratitude to Mr. Jerome Dumetz for the help, patience and guidance provided during the creation of this thesis.
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Table of contents
Table of contents ..................................................................................................................... 6
1.Introduction .......................................................................................................................... 8
2.Human Resource Management – theoretical background .................................................. 10
1.History of Human Resource Management ...................................................................... 10
2.New HR Management .................................................................................................... 13
3.Corporate Culture in connection to HR ........................................................................... 13
3.1.Types of Corporate Culture ...................................................................................... 15
3.2.The P.A.E.I. Theory ................................................................................................ 18
4.HR Motivation and Stimulation Strategy ......................................................................... 19
4.1.Optimum working conditions and motivation ........................................................... 21
4.2.Motivation and satisfaction ...................................................................................... 22
4.3.Motivation and stimulation ....................................................................................... 22 4.3.1.Maslow's theory of Needs ............................................................................. 23 4.3.2.Theory X and Y ............................................................................................. 24
5.Organization’s strategy and the alignment of HR ........................................................... 26
5.1.Structural units of strategic management ................................................................ 26 5.1.1.Strategy implementation ................................................................................ 27
5.2.Strategic management and HR ............................................................................... 28 5.2.1.Specifics of HR to better serve the employees .............................................. 29
3.The Pilot Study. Application of knowledge in a chosen company ....................................... 30
1.Tesco Stores ČR plc. ...................................................................................................... 30
1.1. Company History .................................................................................................... 30
1.2.The Present situation ............................................................................................... 31
1.3.Awards .................................................................................................................... 32
1.4.Trends in the consumer market ............................................................................... 32
2.Tesco as an employer ..................................................................................................... 34
2.1.Employer's reputation .............................................................................................. 36
2.2.Corporate Social Responsibility ............................................................................... 36
2.3.Cooperation with universities ................................................................................... 38
2.4.Acquisition, selection and recruitment ..................................................................... 39
2.5.Compensation and employee benefits ..................................................................... 41
2.6.Training and Development ....................................................................................... 43
2.7.Industrial relations and communications .................................................................. 45
2.8.Care for employees ................................................................................................. 46
3.Questionnaire for employees of Tesco ............................................................................ 47
4.Conclusions ........................................................................................................................ 52
5.References ......................................................................................................................... 54
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1. Introduction
The main focus of this thesis is Human Resource management with the specific focus
on how the HR department works and how it is involved in the activities of the rest of the
company as well as the care for its customers. The whole concept of the thesis is the
analysis of a chosen company based on the previously gained theoretical knowledge. The
goal is to show if the chosen company has well-developed HR management consistent with
its goals and strategies.
The first part of the thesis describes the theoretical background of Human Resource
management in general. The mentioned theory will later serve as background information for
the consequently conducted analysis of the chosen company.
It starts with a historical overview of human resource management along with its
development all the way to the modern world. The most important steps of the HR
management evolution are depicted in this section.
The following part focuses on different corporate cultures, what they mean and how
exactly they are related to HR. This includes the responsibilities of the HR manager related
to the corporate culture of a company.
Then, a slightly larger part is devoted to motivation. It includes the optimum motivation
conditions and how motivation itself influences the employees’ satisfaction and performance.
Specific theories about motivation at work also have their place in this section. Motivation is
included in the theoretical part of this thesis because it is generally one of the HR manager’s
duties to look after the employees of the company, specifically their job satisfaction.
The next part of the theoretical research consists of the features, structural units and
other factors included in strategic management. First, these elements are fully described
because each company has its set strategy and goals, and then a connection is made
between the strategic management of the company and its HR department.
The second half of the thesis contains research information. The chosen company
for this research is Tesco. This company was chosen because it is one of the larges
companies on the market and it has a long tradition, so we can assume that the desired
information will be available and easy to find. We can also assume, that since it is such a
large company, The HR management should have some structure and should be more
evolved compared to other companies. I find the company interesting since it seems like it
has been very successful and I would like to find out how the employees are treated in such
a large company. I also know some people who work for Tesco so that will also help me with
the information gathering process.
The chosen hypotheses for the purposes of this thesis is as follows:
1. Tesco has a well-developed Human Resource management system with great
emphasis on the satisfaction of the employee.
2. Tesco implements Human Resource goals into their overall business strategy.
The research will either confirm or reject the above-mentioned hypotheses. The
information for the research was gathered mainly from the Tesco Intranet, which is a special
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kind of location containing (not only) important information for the employees and is not
publicly available, and also from different company web pages. The second part of the
research is conducted by a questionnaire completed by the personnel of Tesco.
The research is conducted by qualitative research of both internal and external
materials of the company as well as discussions with the employees. The information is then
analyzed and processes to suit the needs of this thesis. The outcome of the research is
organized in chapters in the second main part of this thesis.
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2. Human Resource Management – theoretical backgroundThis part of the thesis will focus on the main aspects of the theoretical background for
Human Resource management. The historical development will be mentioned as well as the
so-called New HR management.
1. History of Human Resource ManagementThe roots of Human Recourse management go deep into the history of human
society. Even the first representatives of humanity, being united into gentile communities
solved many problems every day, using their own, very limited physical and intelligent
resources. They faced questions of labor division, work motivation and discipline. There are
many examples of people management even in the Bible – just remember Moses, who
decided (with God’s help) to solve the problems of organization, distribution and motivation,
during the Israelites’ transition from Egypt to the Promised Land. 1
During the Middle Ages, only small numbers of people had to be managed (probably
the only exception was the military) for many years and even centuries, and they were
mainly performing the same operations over and over throughout the whole time. Personal
management is one of the activities of the head of an organization, most often the owner,
who makes the decisions concerning his employees, based on common sense and
experience. Despite the outward plainness of the middle ages, it provides us with interesting
examples of planning and development of a professional career (west workshops with its
internal hierarchy designed in detail along with the criteria for promotion within the
framework), stimulation of work (the first plans of participation of wage-workers in profits),
and vocational education (craft schools, apprenticeship system).
The Industrial Revolution between 1750 and 1850 changed the character of
economic organizations - factories in conjunction with work in large numbers of people
replaced workshops. The character of work changed too - in place of skilled trade
handicrafts-man came the mechanical content and structure, meaning less work for the
proletarians. The increase of economical organizations and the strengthening of discontent
because of work conditions, progressively forced the leaders of organizations to employ
professionals working exclusively in close relations with the workers. They were called
Secretaries of the well-being in England, Social Secretaries in U.S. and France. They
organized the workers in schools and hospitals and they also monitored the working
conditions. 2
1 Bratton John, Gold Jeffrey. Human resource management: theory and practice. 2nd Edition. London, 2001, ISBN: 0-8058-3862-7, p. 6-8
2 Brunstein Ingrid. Human Resource Management in western Europe. Institut d’Administration des Enterprises, University Robert Schuman, Strasbourg, France, ISBN: 3-11-014275-9, p. 66
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Substantial changes in Human Resource Management occurred later in the
industrialized countries, in the 20-30s of the 20th century. Three important factors determined
the changes - the appearance and spread of “scientific work organizations”, the development
of the union movement and active government interventions in the relationships of workers
and employers.3
The theory of the “scientific organization of work” or more precisely “scientific
management” has its basis in the early 20th century in the work of Frederick Taylor (USA). It
was subsequently developed by many scientists and has later formed the “quiet revolution”
in managing organizations in general and human resources in particular. The theory of
“scientific management” maintained that there were only two methods of management and
organization of work for all companies, the universal and the optimal, which allowed
increases in productivity. The development of these methods is supposedly based on the use
of science (mathematics, physics, psychology) and experimental works. While propagating
the ideas of “scientific management”, representatives of a new profession appeared in many
plants – engineers, who were engaged in the studying and optimization of working methods.4
The development of machine production united the masses of workers in the
industry and made their work mechanical and monotonous. It contributed to the rapid growth
of trade unions in all industrial countries. By the beginning of the 30s of the 20 th century, the
collision of collective agreements between unions and employers had become a common
practice in all industrial countries. Much more complicated relationships with unionized
employees demanded the creation of special positions of directors or administrators in many
organizations. The employees in such functions negotiated with trade unions, analyzed their
claims, and represented the interests of the organization in judicial processes if needed.
The sharp social stratification in the society of the industrialized world during the first
decades of the 20th century was accompanied by an increasing influence of social and
communist parties, as well as radical trade unions, which made the government to be more
active in the regulation of the relations between workers and employers. This government
intervention led to the creation of national systems for social insurance, unemployment
compensation, minimum wage, control and reduction of working hours. As a result, the
organizations began creating special departments that were dealing with the compliance
monitoring of labor laws and also engaged in interactions with public authorities. They are
usually called the Human Resource department.3
In the 50s and 60s, the industrialized countries were swept by another wave of
legislative - a more complicated regulation of labor relations. The new laws were directed
3 Bratton John, Gold Jeffrey. Human resource management: theory and practice. 2nd Edition. London, 2001, ISBN: 0-8058-3862-7, p.6
4 Sison S. Perfecto. Personnel and Human Resources Management. 2nd edition. Date Printed October, 2000, ISBN: 971-23-1002-7, p. 6-11.
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against all forms of discrimination in the workplace, the social guarantees for workers were
increased, and safety standards of the working environment were developed and
established. The specialized departments of human resource management, developed in the
20s and 30s of the 20th century, has been playing a subordinate role for many years now,
performing mostly routine work connected with the conduct of documents, analyses of
conflicts, representation of employees in courts, salaries, etc. Their functions were treated as
purely technical support of management. All decisions related to people management were
taken by the leaders, without the participation of personnel officers.5
During the Second World War, the HR departments of industrial enterprises
(especially in the U.S. and UK) were given the task to recruit and train hundreds of
thousands of new employees of all professions and send them into the army as soon as
possible. This problem was successfully solved and since then the issues of selection and
training became the most important activity of the human resource departments. During the
war, as well as later on, the development in the early “performance management” consisted
mainly of the development of optimal working methods and planning of the number of
workers on the basis of economic indicators (value produced per unit of production, profit). At
the end of 20s, the American scientists E. Mayo and F. Roezlizberger proposed the concept
of “human relations management”, saying that the productivity depends not only on the
methods of the organizations, but on how managers are implementing them – on human
rather than mechanical factors.
David McGregor published the book “The Human Side of the Enterprise” in 1960, in
which he criticized the basic assumptions of the “scientific management” theory.5 McGregor
stated that the propounded detailed procedures and rules, pervasive division of labor and the
concentration of decision making functions on the upper floors of the organization are killing
creativity, limiting the independence of workers and their development, and creating
antagonism between the workers and their supervisors, which negatively affects their
performance. McGregor’s work and other theories of management had a significant influence
on management practices and preparation of future leaders. In the 60s and 70s, American
business schools expanded their programs by including the disciplines concerned with
human resource management: industrial psychology, organization behavior, and the board
staff. As a result, leaders who recognized the need and importance of Human Resource
Management joined the society.6
5 Douglas McGregor, Joel Cutcher-Gershenfeld. The human side of enterprise. The McGraw/Hill Companies, Inc. 2006. ISBN: 0-07-1462228.
6 Bratton John, Gold Jeffrey. Human resource management: theory and practice. 2nd Edition. London, 2001, ISBN: 0-8058-3862-7, p.7
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2. New HR ManagementThe principles of management in today’s world are human factors, knowledge of the
subject of business management, the ability to organize own work and the work of a team,
interests, self-development and other creative activities. The central figure in professional
management – the manager – has to be able to see the prospect of case developments,
who can quickly assess the real situation and find the optimal solution to achieve set goals.
In this regard, the manager must have certain professional and personal qualities, such as:
high competency, flexibility, ability to take risks, aggressiveness and the ability to implement
plans, simply to be a team leader.7
Managers nowadays are required to have many practical skills and even more skills
connected to social relations. HR managers need all that, but they don’t work on concrete
business projects and the things like. Their goal is to have skilled and content employees
working for the company. So, they arrange trainings of all kinds and hire suitable people for
the company, among other things previously mentioned. This area is constantly developing.
3. Corporate Culture in connection to HRCorporate culture means the way things are done within a company. This refers to
anything from the main goals and visions of the company, overall morale in the work place,
the ways offices are set up (closed or open space) or how meeting are organized all the way
to dress codes. The corporate culture defines the company from the inside as well as the
outside.8
Corporate culture is a very important aspect of every company because it affects mainly
the employees – how they feel at work. Companies with a strict hierarchical structure where
people are just placed into tiny offices or cubicles with strictly set rules about how they
should do everything and have no say whatsoever usually have a very poor (in relation to
human resource management) corporate culture. The corporate culture is simply made up of
strict rules and obligations with no personal freedom. Many companies used to have
structures like this in the past. Nowadays it is more common for organizations to give their
employees more freedom – more casual dress code so they would be more comfortable,
added value to their opinions and suggestions or some other benefits. So, corporate culture
defines how the employees work as well as how they feel about it.9
7 Brunstein Ingrid. Human Resource Management in western Europe. Institut d’Administration des Enterprises, University Robert Schuman, Strasbourg, France, ISBN: 3-11-014275-9, p. 45
8 Nikolai Ivanovich Driakhlov. Корпоративная культура: проблемы и тенденции развития в мире и в России (Corporate culture: problems and development trends in the World and in Russia). Nauka, 2011, ISBN: 978-5-02-037095-1
9 Kotter John, Corporate Culture and Performance, Free Press, 1992, ISBN-10: 0029184673
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So, what exactly is the relation to HR management? HR managers, more or less, take
care of the company’s employees and it is (not only) their job to make them feel valued. HR
managers are also the ones who introduce the corporate culture to the new employees –
they tell them how things are generally done within the company (most often already at job
interviews). When a new employee comes to the company, his first contact is usually with
the HR department from where he/she is introduced further on to the company. Any new
employee needs to know how things work in the company and the general structure of work,
so it is primarily up to the HR manager to inform the new employees about all this relevant
information before they start work.
Modern HR provides a huge amount of tools, models and methods that can be used in
its business. So how does a manager choose the right one that is suitable for this company,
at its given stage of development, including which people? As a possible starting point, I
propose to have a look at the corporate culture of the organization.10
Consultants, managers, staff, basically anyone joining a new company has previous
work experience in one or two other organizations, so everyone the work according to their
experience. This often leads to misunderstanding. For example, like this:
“The company, whose main business was to distribute food, and whose leadership body had
a clear position regarding the main aim (attracting customers and profits), had a new
personnel director, who previously worked for an IT company, which was adopted to the
entrepreneurial organizational culture.
She started the work from what was habitual for her and what she thought most relevant:
staff training systems, evaluation and collection of innovations. Two months later, the
management body and the personnel director had several conflicts. The management body
demanded results and blamed the HR director for unnecessary waste of time and resources.
The HR manager, in turn, accused the management body for its shortsightedness. As a
result, the personnel director left and said that she would never work in any distributional
business again. The company's management became skeptical about HR managers in
general.”
Numerous similar situations happened in many companies. We can see from the example
above, that the newly hired employee was not properly introduced to how things were done
around the company, i.e. the corporate culture, hence it serves as an example of how
important it really is.11
10 Kotter John, Corporate Culture and Performance, Free Press, 1992, ISBN-10: 0029184673
11 Nikolai Ivanovich Driakhlov. Корпоративная культура: проблемы и тенденции развития в мире и в России (Corporate culture: problems and development trends in the World and in Russia). Nauka, 2011, ISBN: 978-5-02-037095-1, p. 237
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3.1.Types of Corporate CultureWhile carrying out of the literary research considering this thesis, I have found several
sources about already existing types of corporate cultures. Let me present some of them. 12
The main focus of the family-clan’s personnel management department is on the
adaptation of procedures and processes, which will help develop and maintain the corporate
values. That means the aid in the transmission of values and the introduction of new
employees into the community and its own values, as well as continuing with the activities
and communication networks all the time to support the corporate culture.
In a Bureaucratic organizational culture, the focus should be placed mainly on
motivational systems, learning and adapting procedures of management. This organizational
culture can be called the “big car” where the main focus is to work with the machine where it
is necessary to study the instructions. In addition, because of the lack of accent on
personal relationships, opportunities for rapid career growth and the focus on fast results
often occur.
Some material incentive system for staff is prepared to guarantee high performance in
these companies.
In Adhocracy organizational cultures, Human Resources are mainly devoted to the
direction of training and encouraging innovation. Since the staff is very democratic and self-
motivated, they require a dynamic feedback, opportunities for self-realization and resources
for further development. All the rest, these employees do for themselves. Of course, the
selection of such personnel requires considerable effort; to select the right employees is
always a difficult task for any culture. These people attract the best of the best in the
company themselves through communication and demonstration of results achieved in the
market.
Personnel Department of the organizational culture of the market will focus on
procedures for recruitment, mainly because the percentage of turnover in these companies
is very high. The incentive system, with emphasis on results and competition between
employees has to be managed.
12 Kim S. Cameron, Robert E. Quinn. Diagnosting and Changing Organizational Culture. PB Printing, 2006, ISBN: 13978-0-7879-8283-6, p. 236
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Table : The procedure specifics of personnel department
Family-clan Hierarchical Market AdhocracyManagement of
Personnel Records
All of the standards according to the Labor Code. So no matter what kind of
organizational culture, every HR manager needs to know the laws and regulations of
personnel documents
Recruiting
Focus on
compliance with
corporate values
("like us")
The emphasis on
qualifications,
relevant
professional level
The emphasis on
stress tolerance,
results orientation
and a desire to
achieve results
Focus on creative
problem solving,
learning, the tendency to
self-sufficiency in the
conquest and initiatives
Adaptation
Transmission of
values, the
integration in
collective
Transfer processes,
integration into the
processes of the
department, of the
company
Lack of adaptation
or general
information about
the product
(the employee is
taken on the basis
of swim out / drown)
Training and
development from the
first day, the transfer of
information on
resources, which can
take advantage of the
new employee
Education
Not systematic if
necessary
System process,
whose main
objective - the
effective operation
of process in the
system
Not systematically,
the main objective -
Quickly improved
results
System training, the
system self-learning and
knowledge transfer
Appreciation
Most often
missing, as
assessed
objectively close
people not
possible
The main result -
the creation of a
personnel reserve.
The process is very
systematic and
bureaucratic
As a rule, it is not.
Main assessment -
is the achievement
of results
The main result of the
assessment - qualitative
feedback and
development plans of
staff
System of motivation and
encourage
Missing or
emphasize
involvement of
staff in general
result brigade
payment, the
partnership
System of
motivation combine
the answers to the
questions: how the
particular employee
and what the result,
if the necessary
procedures
The main focus -
the result, but not
on how to achieve it
The system of motivation
and promotion is very
flexible
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Corporate Culture
Focus on
maintaining
corporate values
The desire to
"humanize" the
machine, clearly-
written politics of
missions and
slogans
Missing or contains
elements of
competing fight
Focus on autonomy, self-
development, continuous
learning
The basic question
Who is with us? How to do? What is gained? How to do better?
(source: Jeffrey A. Sonnenfeld, Andrew Ward. Firing back: how great leaders rebound after career disasters. [Russian translated: Возвращение в бизнес]. Moskva, Vershina, 2008. ISBN: 1-59139-301 9., p. 125)
As can be seem above, there are many approaches to personnel management and
motivation within an organization and its corporate culture, as well as different combinations
of them in order to suit the needs of the corporation better. It is up to the company
management to decide which way they will choose to manage their personnel resources.
It is also important to remember that the HR fulfills the task of making the company
more efficient. So, in case it is decided that a new position or process will be developed, the
specifics of how it should look like and what the main focus will be, should be figured out in
advance. In consequence, it is suggested to build in accordance with the type of the
organizational culture of the company.
Of course, companies with a "clean" type of an organizational culture do not exist,
even though some dominating bright characteristics of such occur in most.
3.2. The P.A.E.I. Theory
The " P.A.E.I. Theory" by Ichak Adizes is very popular nowadays. According to this
theory, there are four types of factors that make up the ideal manager.13
Table : Adizes’s PAEI model
Factor P - Producer Factor E - Enterpreneuring
Factor A - Administrating Factor I – Integrator
Factor A - Administrator. The manager is a man of instructions and rules. He makes the
company more rational and manageable. It would be most effective in a hierarchical
organizational culture.
Factor P - Producer. The manager is a man of action. He takes an idea and not only
embodies it into life, but also can make money on it. His weakness is the inability to delegate
and that is why he is very tired himself. In this market culture, everyone is competing to
achieve results and customer satisfaction.
13 http://paei.wikidot.com/adizes-methodology
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Factor E – Entrepreneur (generator of ideas). The manager is a fountain full of ideas from
the morning until late at night, and they can fundamentally contradict each other, be real,
expensive, and crazy. But out of hundreds, some of these ideas make the company a
monopoly on the market for spoiled consumers. Generators of ideas make the company
efficient in the long run. It is easily recognized as an entrepreneurial organizational culture.
Factor I - integrator. The manager makes the organization rational in the long run. He
unites people, showing that the final results depend on the contribution of each and
everyone’s work when they aim at a single target. The principles of family and clan cultures
are present here.
A manager in whom all the above mentioned factors would be present does not exist
- this is an example of an ideal manager. Top managers should have three factors, on
average, or at least two. Only some managers can work in three cultures at the same time,
the majority manages two. But all should be able to function well in at least one.
I will not stop at details of the theory of Ichak Adizes, but it is important to understand
that every company or department will dominate in one or another previously mentioned
field. Ideally, the company's management team can be balanced and have all the factors at
least present. Still, one will always dominate and affect most of the company's strategy.
Therefore, it needs to be taken into consideration that the HR department will implement its
procedures in the given environment for its employees.14
The way managers behave also shapes the corporate culture because it directly
influences the employees in their work. Ideally, managers should be consistent with the
overall company structure, but every manager is comfortable with their own management
style, thus shaping the overall corporate culture and bending it a little. Of course, the basic
principles and corporate plans and visions are kept throughout the company, but different
departments may sometimes work differently only because they have different managers. All
this contributes to the forming of the whole corporate culture of an organization.
4. HR Motivation and Stimulation StrategyMotivation is one of the essential parts of personnel management. Generally, motivated
workers work better – meaning that their performance is larger than the one of non-
motivated workers (e.g. in production, motivated workers produce more). It is also connected
to the mood of the worker – if a worker feels bad in the working environment, his/her
performance and productivity will not be as good as it should be.15 So, what is this motivation
exactly?
14 Ichak Adizes. Managing corporate lifecycles: how to get to and stay at the top. Library of Congree Cataloging. ISBN: 0-937120-06-5, p. 223
15 Herzberg Frederick, The Motivation to Work, Transaction Publishers 1993, ISBN-10: 156000634X
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„Motivation is any inner reason, which stimulates human behavior“. It means that any
person, according to his personal reasons and motivation, will act in a special way as long as
he has to until the desired goal is reached. To understand this behavior and the manners of
any person, it is needed to have at least some knowledge of the motives. It is the one
possible method to success.
„Motivation is a set of internal driving forces of a person, which make focused in a
certain direction, activating and maintaining the resulting activity. Outwardly, these forces are
manifested in the form of motivated behavior (motivated activity).“16
Armstrong (2010 p. 219) says that: "Motivation relates to factors that influence people
to behave in a certain way“. Furthermore, it is possible to present the three components
mentioned by Arnold like an addition to this theme (2001), which are: "direction - that a
person attempts to make an effort - with what diligence and endurance he attempts to reach
his aim - how long he tries to do it."
There is a working relationship between motivation and performance levels that is very
important for the purposes of corporate governance. The awareness of the need of
motivation in order to increase employee job performance has been constantly growing, but
still we cannot forget about other factors that affect the performance and support good
working conditions. These factors are:
− sufficient knowledge;
− competent skills;
− availability of equipment of adequate quality;
− good materials;
− comfortable organization of work.
By the way, nothing is forever, and any kind of growth or a long-term function eventually
looses its attraction and the employees loose their motivation at a certain level. According to
the Yerkes-Dodson‘s theory, when you have crossed this hypothetical level, the resulting
level of motivation begins to decline. However, the achievement of this level of excessive
motivation, or even higher, is possible. There are several reasons when that happens:
− in certain situations, when a person is trying to do everything for the success;
− in certain areas, which that certain person especially dislikes or puts excessive
attention to;
− in a short period of time with a short-term reset.
As some typical examples, we can present: a difficult test at school, an important job
interview, a high-level sporting events, etc. Unfortunately, the staff at work needs to be
16 PAUKNEROVÁ, Daniela. Psychologie pro ekonomy a manažery, 2 edit. Praha: Grada, 2006, 254 s. ISBN: 80-247-1706-9, p. 173
18
permanently motivated. It means that what was said above is relevant for most cases, but
not for cases with employment.17
4.1.Optimum working conditions and motivationThere are no doubts about the fact that better staff motivation results in better working
performance of the staff.18 Let us now focus on some other conditions that affect the
performance level of workers. The subjective factors that affect performance along with
motivation are the following:
− individual abilities;
− personal skills;
− knowledge;
− general qualifications.
Workers generally need to be qualified to do their jobs and have the proper skill to
perform the tasks, otherwise the job will not get done and the worker will only get frustrated,
and thus unmotivated, at work.
And also the following objective factors increase performance:
− organization of work;
− level of the used technology;
− the working environment.
The above-mentioned specifics refer to the working conditions – workers will generally
work better if they feel like the conditions and the environment they work in are suitable.19
Another important thing to remember is, that it is impossible to just claim that "the
greater the motivation, the higher the performance", because there is no proportional
relationship between motivation and the resulting activity. There are cases, when
performance does not increase, but conversely decreases, because of the fact that the level
of motivation is too high, above the optimum value. Such cases are also called cases without
motivation. So, it can happen that the low level of performance is a result of very high (too
high) motivation.
As we can see above, the level of motivation needs to be “just right” – the workers need
to be motivated and supported, but there is such a thing as too much motivation, which, in
17 PROVAZNIK, Vladimir, KOMARKOVA, Růžena. Motivace pracovního jednání. 2. přeprac. vyd., Praha : Oeconomica, 2004, ISBN: 80-245-0703-X, 128 s.
18 http://www.techrepublic.com/article/creating-supportive-engaging-work-environment-helps-fight-employee-burnout/5035231
19 http://www.eurofound.europa.eu/areas/industrialrelations/dictionary/definitions/WORKINGCONDITIONS.htm
19
fact, demotivates the workforce, they may start to feel incompetent or inferior if the managers
push too hard and become annoying.
So, we can say, that the performance level of any activity, of any person, depends on the
levels of motivation, employee skills and on working conditions.
4.2.Motivation and satisfactionThere is a term that describes the feelings and expressions of people about their
profession, job or work. This term is "job satisfaction". Satisfaction towards work means that
a person has favorable and positive attitudes. On the contrary, dissatisfaction with work
means that the person has adverse and negative attitudes toward the job. 20
Job satisfaction is related to work motivation, although without a direct correlation,
according to F. Herzberger. The absence of long-term job dissatisfaction is prerequisite for
desirable work motivation. If a worker has motivation it does not automatically mean that he
has satisfaction.21 In other words, for a worker to be fully satisfied with his work, all of the
motivation factors have to be fulfilled, as well as the non-motivational factors connected to
the abilities and working environment, have to be fulfilled. Job satisfaction simply describes
the overall feeling one has towards his/her job occupation.
4.3.Motivation and stimulationIf managers require special activities from their subordinates and put it into context
with their existing internal needs, it means that they rely on motivation. People will act in a
way as long as it is in line with their actual motives and demands to reach their own goals
without any influence, and all this is because of motivation. But to achieve this target, it is
important to balance motivation with required special skills. It is not very easy to estimate the
actual motives of people.
If we bet on stimulation, we will be able to face absolutely different cases. Desirable
human activity will be stopped as soon as people stop investing the necessary effort, time or
company resources in the given activity. This is expected without any deflections. Managers
have to make choices between motivation and stimulation according to their abilities, skills
and the specific conditions.22
20 http://www.google.cz/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&ved=0CC4QFjAA&url=http%3A%2F%2Fwww.webpages.uidaho.edu%2F~mbolin%2Ftella2.pdf&ei=fWuZT7SoJcaQswbX8JSDAg&usg=AFQjCNHEDpcdj2KuQb0Nj21ZTBNDiL2U2w&sig2=0meF5HbdEPyEaurwK2Gv3g
21 ARMSTRONG, Michael. Human Resource Management: The latest trends and practices. 10th edition. Prague: Grada Publishing, 2007. ISBN 978-80-247-1407-3. p. 228.
22 PLAMINEK, George. Leadership, teams and companies: Atlas of Practical Management. Prague: Grada Publishing, 2002. ISBN 80-247-0403-X, p. 76
20
4.3.1. Maslow's theory of Needs
Abraham Maslow was an American clinical psychologist, and he was one of the most
important representatives of humanistic psychology. This psychology is based on the
assumption that the people „have own tendencies to further develop and implement their
own individual possibilities (potency), which represents the efforts for the better quality of life
and meaningful leadership."23
There are two types of motivation factors, according to Maslow’s theory. He
distinguishes factors of disadvantages and factors of growth. The first group of motivational
factors, according to what is written above, causes some tension, and it is associated only
with some disadvantages (for example, meals, social contact, recognition). Usually, people
try to eliminate this deficiency, because if they are successful in it, it means that they will
release tension and return to balance.
Human behavior is, based on Maslow’s theory, influenced by the needs that are
arranged in a hierarchy by importance. First, people try to satisfy the needs of the lowest
level and only when they are successful in his activity, they try to meet the needs of higher
levels.
Basic human needs are existential (physiological) needs that must be met for
survival and are a physical standard of every person (plenty of fluids, food, sleep, heat).
These needs are relatively stable and developed countries are completely satisfied with
them and don’t have many problems. If we instead wanted the general human needs to
substitute some basic needs related to employment, we classify this group as wages and
working conditions, as stated by Veber (2004).
Security needs include both physical security and economic security. Physical
security is related to the proper functioning of the police, health, and military of a given
region, country. Economic security is related to job security, ability to retain oneself by a
certain standard of living and status, and avoidance of unpleasant changes. The needs of
economic security have a relatively high motivational strength in industrialized countries. Its
importance is especially growing in the times of the economic crisis.
The need of love, friendship, contact with other people, of belonging to somebody,
the need to belong and feel good somewhere, belongs to the social needs category. These
needs, especially with the rising standard of living and their important role related to
interpersonal relationships, are very important at work, and dissatisfaction can be a
significant source of frustration.
Psychological needs are also a great motivating force. They also go hand in hand
with the increasing standard of living. Psychological needs include the need for recognition,
esteem, a certain status, prestige and esteem for the majority of employees.24
23 PROVAZNIK, Vladimir, KOMARKOVA, Růžena. Motivace pracovního jednání. 2. přeprac. vyd., Praha : Oeconomica, 2004, ISBN: 80-245-0703-X, p. 59
21
Requirements for self-fulfillment needs are permanently growing. They are not easily
satisfied, as indicated by Nakonechny (1992), because their satisfaction is increased in a
very high intensity. It consists of the development of needs and usage own skills, ability to
influence own lives and surroundings, the need for knowledge, understanding, etc. According
to Maslow’s theory, such needs of self-actualization are the most important for a person.
Important conclusions of the theory are25:
− Needs of higher levels start being motivational and desired only after the satisfaction
of lower level needs
− When a person tries to satisfy the needs of a higher level, it means that the needs of
the low leveler level are already satisfied
− Individual people, as well as different groups, can have different structures with
different needs and values
− If a person has a long-term dissatisfaction of certain needs, it can lead to
compensatory activities. These unsatisfied needs may have a very negative
influence on employee’s motivation to work
− Various factors, such as environment, fashion, status and others have influence on
different needs and push people into wishing for it, to satisfy the need
4.3.2. Theory X and Y
Douglas McGregor formulated this theory of work motivation in 1960. Theory X and
theory Y are based on the types of ideas about personal feelings about the profession, job
and one’s relationship to work. Theory X and theory Y are based on the following:
According to theory X:"The average person has an innate aversion to work and generally tries to avoid it
wherever he can. Because man keeps a marked distaste for work, he must be mostly
forced, guided and threatened by punishment, to be moved by the pressure to reach the set
standards by the company. This resistance to work is so strong that even the promise of
wages is not enough to break it. Even though one receives a salary, it still requires the
additional actions of guidance. Money alone cannot induce people to try harder. To do this, it
is important to have the threat of punishment. The average person prefers to be guided,
prefers to hide from responsibility, has relatively little ambitions, and he will primarily settle
down. "26
24 DVORAKOVA, Zuzana. Management lidských zdrojů. Vyd. 1., Praha : C.H. Beck, 2007, 485 s., ISBN: 978-80-7179-893-4, str. 76
25 DVORAKOVA, Zuzana. Management lidských zdrojů. Vyd. 1., Praha : C.H. Beck, 2007, 485 s., ISBN: 978-80-7179-893-4, str. 76
26 NAKONEČNÝ, Milan. Motivace pracovního jednání a její řízení. Prague: Management Press, 1992, ISBN: 80-85603-01-2, p. 92
22
According to McGregor, all this is prejudice. Such employees are often widespread
among the management. This theory explains only some human behavior. According to
McGregor, this is connected to the behavior of workers in a business that is filled with
uninteresting work, where is impossible to indulge personal skills and prove competence. In
such cases, unsatisfied people usually require an increase in their wages to compensate
their higher needs. They are able to compensate partly these needs by buying different
things. Moreover, higher wages contribute to a higher social status.
Theory Y:
"Serving the spiritual and physical effort at work is so natural as entertainment or
relaxation. An average person does not have an innate aversion to work, and, under given
conditions, the work can be taken as a source of job satisfaction, or as punishment.
Being guided by other people and threatened with punishment is not the only way to move
someone to commit to achieving the targets of a company. Good goals, which are felt as
bounding, steer the person to submitting to self-discipline and self-control.
How much the person feels himself being compelled to objectives is a function of
rewards associated with their achievement. The most important of these rewards is to satisfy
the personal needs and personal development. The average person learns under proper
conditions not only how to take over the responsibility, but also how to search it. Escape
from responsibility, lack of ambition and desire for security are generally consequences of
bad experience, not innate human qualities. There is an enlarged talent base for the
imagination, discernment and ingenuity to solve problems of organization among people."27
According to Theory Y, the output from efforts is associated with the job. This output
is absolutely natural and depends on special circumstances. It means that such a job,
according to personal activities and motivation, must bring to the person a specific job
satisfaction. In case when the job brings stress, the person will try to avoid it. The integration
between the business interests and individual interest is the main point of the efforts that
need to be achieved, according to this theory. If a person tries the best he can, he will be
able to achieve his objectives and make possible contributions to the overall success of the
company.
To collaborate for achieving business goals, reduces the importance of control and
increases the importance of self-control and self-management – it is very easy and possible
in such a case, when the company takes into account the wishes and goals of employees
and manages them. In this case, employees take the responsibility for their tasks personally.
They are supported by innovation and changes in the way of cooperation to ensure greater
use of their skills.28
27 NAKONEČNÝ, Milan. Motivace pracovního jednání a její řízení. Prague: Management Press, 1992, ISBN: 80-85603-01-2, p. 100, 101
23
5. Organization’s strategy and the alignment of HRHuman resources alignment means “integrating decisions about people with
decisions about the results an organization is trying to obtain.” By integrating human
resources management into the organization’s planning process, emphasizing human
resources activities that support the organization’s mission goals, and building a strong
relationship between HR and management, organizations are able to ensure that the
management of human resources contributes properly to mission accomplishment and that
managers are held accountable for their HRM decisions.
5.1.Structural units of strategic managementA company’s strategy is a set of principles, which guide the future actions and
decisions of the entire company. Strategic goals usually consist of several elements:
A picture of how the company should look like at some time in the future is the vision. A
clear statement about the essential nature of the company is the mission of the company.
Then the company sets measurable objectives describing the process and concrete steps
of how the vision will be achieved. The common way a strategy is developed is through a
process of strategic planning.29
Strategic planning used to be a yearly event, nowadays it is a more flexible process.
Managers of the organizations scan the environment continuously and by that (should)
notice new opportunities or threats as soon as possible, thus aligning the plans.
An effective form of a vision statement is a picture of what the company should look
like in three to five years. All statements should be specific, verifiable and able to excite and
inspire staff. A good vision statement should be: clear, verifiable, focused, understandable
and inspirational (Brown 1998).
5.1.1. Strategy implementationWhen a company has it goals and visions set, it needs to successfully implement the
strategy; it needs to manage the following key factors:30
• Action Planning
• Organization Structure
• Human resources
• Annual Business plan
• Monitoring and control
28 DVORAKOVA, Zuzana. Management lidských zdrojů. Vyd. 1., Praha : C.H. Beck, 2007, 485 s., ISBN: 978-80-7179-893-4, str. 76
29 http://www.managementstudyguide.com/strategic-management.htm
30 http://www.birnbaumassociates.com/strategy-implementation.htm
24
• Linkage
Action planning means that the company prepares detailed chronological action steps.
The important part is, that they set responsibility to each step, each individual part of the
plan, as well as the deadline – the date when the specific step needs to be finished. This
means, that the whole company vision and goals are broken down into concrete action
steps.
The structure of the company needs to suit the needs for strategy implementation. It has
to be checked, and if the current structure is unsuitable for the purpose of the fulfillment of
the goals, it has to be changed accordingly. All this is done in order to help the workflow and
overall communication in the company.
The company management also needs to consider the required human resources
needed in order to successfully reach the goals. Then, the management needs to make sure
that these people fully understand everything they are supposed to do. This step includes
hiring of new employees and training of current or new employees so they will have the
required skills and knowledge.
When the plan is made, it is necessary to monitor the progress. And since plans are
made with concrete deadlines, and most often updated for each year in advance, the
managers have to check the overall situation continuously – if the company is ahead of plan,
on time or behind the plan. Then, necessary measures need to come into action.
Linkage is very important in all this – it is simply the tying together of all the above
mentioned activities of the organization, to make sure that everything is working together
properly and developing in the same direction. Since many people are working on many
things at the same time, it needs to be checked if it is corresponding not only to one-another,
but also to the overall strategy.31
5.2.Strategic management and HRStrategic planning allows agencies to map out where they are, where they want to
go, and how they plan to get there. The strategic planning process varies from company to
company. The plans are mostly organized in a step-by-step matter with specific tasks
assigned to specific departments, managers and employees. Some companies may develop
their plans at the top management level with little input from other stakeholders, some may
plan by departments or just leave it up to the managers themselves. Each company will do it
the way it suits it best, but it will definitely be in line with the overall goals of the whole
company.32
However, the integration of HRM in company plans is still evolving. Considering that
a company’s mission cannot be achieved without its people – that is where HRM comes in.
31 http://www.strategy-implementation.24xls.com/en101
32 http://www.managementstudyguide.com/strategic-management.htm
25
Just by looking at some examples of strategic plans, it is clear that diversity, recruitment,
retention, employee development, and workforce quality are the main areas of interest. So,
when these factors are designed and implemented well, they lead to the ultimately desired
result: the right people, with the right skills, in the right positions carrying out the company
mission and goals.33
Nevertheless, most companies see the department of Human Resources as an
administrative department, thus they don’t get it involved in the strategic planning, and the
needs and opportunities are ignored – the alignment with strategic plans. The main reason
why HR is not involved in the company’s strategic planning is mainly because its results are
not measured in money. So, the companies that don’t integrate HR plans into the overall
strategy, their HR departments usually develop their own goals and strategies based on the
current needs of the company, which are most often communicated by managers to the HR
department.
5.2.1. Specifics of HR to better serve the employeesIt may not matter if the company implements HR strategies into the overall strategy
of the company or the HR departments develop their own strategies, as long as the care for
customers is done in some way. That is, if the company wishes to do so.
The HR department is not only responsible for hiring and firing of employees, but
also for the overall care of the employees. Communication efficiency within the company –
meaning that the employees are kept informed about everything that is happening in the
company to better serve their needs is very important. Otherwise miscommunication may
cause troubles.
The other field of HR responsibilities includes employee benefits – meaning both
financial and non-financial support of the employees. Employees should feel valued in their
work and that should be shown both on their salary and on the manager’s behavior towards
them. The salary should refer somehow to the amount and importance of work done. Some
companies may choose to reward their employees with other benefits, which is also fine.
We can conclude, that the HR department is responsible for the effort to make
properly educated and informed employees feel good at their jobs and work better with
enthusiasm and the knowledge that they will be properly rewarded, no matter what the
general strategy and vision of the entire company may be.
33 Frangos, C. 2002. Aligning Human Capital with Business Strategy: Perspective from Thought Leaders. Harvard Business School, Balanced Scorecard, May – June 2002
26
3. The Pilot Study. Application of knowledge in a chosen company
1. Tesco Stores ČR plc.The Company Tesco Stores ČR plc. (hereinafter referred to as Tesco) is a subsidiary
of the parent company Tesco PLC (Public Limited Company), located in Great Britain. It is
the largest British retail chain, which is the largest private sector employer in the UK. In the
Czech Republic, Tesco sells food and non-food goods to end customers, retails commercial
space to other marketers, and currently also provides financial services.
1.1. Company History
Jack Cohen, a retired soldier from the British Royal Air Force, first opened his stall
with food supplies for war in 1919. Five years later, the first product under the brand Tesco
was launched at the British market. The name consisted of the initials of the directors at that
time – T. E. Stockwell and Jack Cohen. Cohen opened his first London store in 1929. Three
years later, Tesco became a limited company. Tesco was managing already fifty business
units by 1934. In 1956, the first self-service store was opened.
The company entered the Czech Republic in 1996 under the name Tesco Stores ČR
plc. (hereinafter referred to only as Tesco), where it bought six commercial stores from the K-
Mart Company. Two years later, Tesco opened its first hypermarket at Zličín in Prague. The
following years were the years of expansion – the number of business units grew and the
product range expanded. In 2004, the first hypermarket model for smaller cities was opened
in Melnik. The introduction of the supermarket format followed. Tesco then took over the
store chain Edeka and bought 11 business units of the Careffour chain in 2006. Two years
later, the company opened the first Tesco Express store Prague. Tesco in Liberec opened
the first department store under the name “My” in 2009, which was greatly significant for the
whole company.34
The following graph illustrates the number of business units of Tesco since 1996,
when the company entered the Czech market until 2009.
34 Web site of Tesco Stores ČR a.s.: Historie [online]. 2011 [cit. 23.3.2011]. available from WWW: http://corporate.itesco.cz/historie.html
27
Figure : Trends in the number of Tesco stores
(Source: Intranet of the company Tesco Stores ČR plc.)
The graph shows that the number of Tesco stores in the Czech Republic has been
growing every year. The fastest increase is recorded in 2006, when the takeover of the
Edeka and Careffour supermarket chains took place.
1.2.The Present situationTesco in the Czech Republic currently operates a total of 159 business units,
including 73 hypermarkets, 51 supermarkets, 28 shops and 6 Tesco Express stores, as well
as its own network of filling stations.35 In 2010, the company came up with a completely new
format of Tesco Extra stores, which, in addition to the traditional range of products, provide
completely new services – a pharmacy, optics, photo-services and telecommunication
services. Currently, three Tesco Extra stores ore open in the Czech Republic - two in Pilsen,
and one in Prague in the commercial center of Eden. The company plans to restructure all
the supermarkets in larger cities in this format in the future.
Presently, Tesco is planning to purchase the Koruna stores, which it plans to rebuild
according to the Tesco Express format (small shops for everyday shopping) and then the
Žabka stores that Tesco will continue to operate in a similar design as before, based on the
franchise. Tesco has recently been increasingly focused on environmental protection in its
business activities. The proof of this is the opening of the first hypermarket with zero carbon
footprint in Europe, which is in Jaroměř and was opened in February of this year.
35 Situation in March 30, 2011
28
1.3. Awards
Tesco is gaining popularity not only among the general public, but also among
experts in its approach to customers, employees, and also to other business activities. Proof
of this may be a number of awards that Tesco has received during its operation in the Czech
Republic.36
In the years 2004, 2006 and 2007, Tesco acquired the award "Retailer of the Year" in
the GE Money Multiservice competition. Tesco also received the title "Hypermarket of the
year." from 2004-2008. In addition, the company boasts the prestigious title of "Top Retailer
2008/2009", awarded annually by customers. Another important award that Tesco received
was the "Professional of the Year 2007".
The company also won the major awards for access to its employees. The awards
"Personnel Project 2005" was awarded for the developing programs for employees and
graduates. And the title of "Personal Project 2006" was granted to Tesco for the project lines
of protecting the interests. Tesco also won “Employer of the Year 2008" for its exemplary
care for its employees in the competition The Same Chance, which is organized for
companies employing the disabled or socially disadvantaged workers.
Tesco also scored in a major worldwide competition – the Energy Globe Award,
which recognizes projects that use energy sparingly. In 2008, it won in the Country category
(for Žatec) the appreciation for energy-efficient stores.
1.4.Trends in the consumer marketAlthough many companies do not even realize that the employer’s reputation also
affects how a company operates with its customers in the consumer market. We can say that
Tesco does not stay behind even in this sphere, but quite the contrary. The basic philosophy
of Tesco is the desire to listen to its customers. The vision of the company is based on high
quality goods, low prices and in the continuous improvement of services. The composition
and arrangement in the range of individual stores is based on customers and reflects a new
lifestyle, with its emphasis on health and ecology.37
The introduction a the loyalty program, the "Club Card" under which customers
receive certain benefits from Tesco as a reward for their purchase there, is mutually
beneficial. Through this program, the company gets very useful information about its
customers - what and in what quantities does the customer buy and how often does the
customer shop at Tesco. Such important information is essential to allow Tesco follow the
wishes of its customers and continually improve the provided services.
36 The website of Tesco Stores ČR as: Awards [online]. 2011 [cit. March 23, 2011]. Available from WWW: http://corporate.itesco.cz/oceneni.html
37 Internal materials of the company Tesco Stores ČR plc
29
Recently, consumers are becoming more aware of healthy lifestyles. This trend gave
Tesco impetus for the introduction of two new product lines, "Tesco Healthy Living" and
"Tesco One Body". The first mentioned is a series of many products ranging from fresh to
perishable focus, and the nutritional value is always given on its packaging. The “Tesco One
Body" product line offers a variety of exercise equipment. Tesco also has a number of
organic products under their own brand in its range of goods.38
Tesco has recently introduced a package of financial services for its customers. It
provides, for example, hire purchases, which apply to durable goods and the cash loans can
be arranged either in store or online from the comfort of one’s home. Tesco also offers
delivery and installation of purchased goods over the amount of 3000 CZK free (except food)
in its supermarkets and commercial stores. The company is aware of the growing number of
Internet users. Therefore, certain features that facilitate shopping in Tesco are also on the
Tesco website. There are such possibilities as "my Tesco" through which users learn the
current menu and prices of products related to the selected store.39
Tesco is the retail chain known for its innovative approach that responds to the
increasing requirements of its customers. It has introduced self-service cash registers that
faster serve customers with smaller purchases. Tesco has also introduced a new cash
register system last year to ensure that any time there are more than two customers waiting
in a queue, the company will do everything possible to open a new cash register. If not, the
individual business unit manager is appropriately sanctioned.
The other thing that Tesco can be proud of (among others) is the introduction of
electronic price tags on all its products. Electronic price tags are placed on the shelf and
apply to all pieces of the product. This innovation prevents the occurrence of old outdated
price tags that can confuse the customers. It is also an important step towards facilitating the
work of employees. They no longer have to put up the current prices on each piece
separately every day, the prices are entered electronically and there is no need to worry
about anything else.
2. Tesco as an employerTesco is one of the largest retail chains in the Czech Republic and currently employs
about 14,500 workers, of which 96% of employees are of Czech nationality. The company is
still growing, even throughout the financial crisis. Tesco is still opening new business units,
and thus still offering new employment opportunities. Because Tesco has its representation
in most towns in the Czech Republic now, it creates jobs in almost all regions. Tesco created
970 new jobs in 2010. This year, the company plans to create additional 900 new jobs, of
38 Internal materials of the company Tesco Stores ČR plc
39 Web site of company Tesco Stores ČR plc: Services in the Internet [online]. 2011 [cit. 3.27 2011]. Available from WWW: http://www.itesco.cz/sluzby-na-internetu.html
30
which about 600 jobs will involve the above-mentioned taking over of the retail chain
Koruna.40
From the organizational point of view, the company is divided into 3 areas:
• Operation
• Distribution,
• Central office.
The area of operations covers jobs like cashiers, people for goods replenishment,
head of sales department, etc., and then the positions of business managers and human
resource managers in individual stores. In the distribution center, the occupations include
warehouse workers, engineer maintenance workers, workers of internal security services,
storage administrators or operations managers. The central office of Tesco is based in
Prague (Vršovice, Letňany, Národní třída) and in Brno and currently employs over 1300
people. Here, the office offers a variety of positions in marketing, IT, human resources,
finance, purchasing department, catering, rentals and leases, and more.41
It is clear that Tesco creates employment opportunities for almost anyone. Skilled
salespeople, heads of departments, college-educated professionals and top experts with
years of experience should be able to find jobs at Tesco. Mobility is very important at the
higher level of employees. The Regional Director must understand the fact that he will be
constantly on the move within the given region. The Central office staff is located only in
Brno and Prague; so employees from those regions stay in the cities, accept for the
occasional business trips to local branches (if their job requires it).
Tesco is currently the most demanded employer company, for which people want to
work, on average 3 times more future employees than the current number of jobs that the
company can offer.42 This fact can be explained, among other things, by the fact that the
focus is not only on high profitability but also on its employees, who form the basis of its
success. The following picture shows something that is called the "helm" of Tesco, which
shows that customer, company, operations, personnel and finance are included among the 5
main pillars of the company.
40 Web site of company Tesco Stores ČR plc: Tesco this year plans to create up to 900 new jobs [online]. March 3, 2011 [cit. March 24, 2011]. Available from WWW: http://corporate.itesco.cz/tiskova-zprava.html?id=778
41 Web site of company Tesco Stores ČR plc: Employment [online]. 2011 [cit. 3.24 2011]. Available from WWW: http://corporate.itesco.cz/koho-hledame.html
42 Web site of company Tesco Stores ČR plc: Tesco this year plans to create up to 900 new jobs [online]. March 3, 2011 [cit. March 24, 2011]. Available from WWW: http://corporate.itesco.cz/tiskova-zprava.html?id=778
31
Figure : The helm of tesco
(Source: Intranet of the company Tesco Stores ČR plc.)
Tesco may be interesting as an employer also because it is the only UK company in
the retail sector in the Czech Republic. This fact can also be a motivational factor for the job
applicants. British corporate culture is known for its relaxed and inclusive approach to
employees than, for example, the characteristic of the way business is done in Germany,
where companies are characterized by mandatory negotiation. The company tries to take its
own employees customized approach, which is, as was already mentioned in the
introductory chapters, one of the basic characteristics of successfully implemented personal
marketing strategies. The overall approach to the employees when they are more involved
and the corporate culture promotes relaxed ways of working shows a specific form of
motivation to work – no stress situations so the can work more peacefully and thus will work
better. There is generally no need for pushing the employees around in order to motivate
them and force them to work (as theory X suggests).
2.1.Employer's reputationBuilding a reputation as a good employer involves a long and hard work. It can be
very simple to tarnish your reputation, but to return your company‘s reputation is very difficult
and often impossible. Tesco is very well aware to this fact, and thus it tries to work hard on
its own employer’s reputation. In 2008, these efforts were well appreciated by the
professional community and the company was awarded with the title "Employer of the Year"
(see Awards section).
The company knows very well that not only the quality of implementation of
individual personnel actions (see next chapter), but also other activities contribute to the way,
how the general public perceives it. These activities are concentrated in the following areas:
social responsibility, cooperation with universities and trends in the consumer market.
2.2.Corporate Social ResponsibilityTesco recognizes that its activities not only affect employees, who work in the
company, and customers, who shop there, but also the lives of other people, who live in its
32
vicinity. The company boasts a long tradition of helping people and supporting the life in the
cities where Tesco operates. Tesco has created the so-called responsible neighborhood plan
under which it focuses on the following key areas:43
• promoting economic development with regard to ecology,
• helping children with mental or physical disabilities and people with health problems,
• promoting healthy lifestyles,
• building fair relationships with its business partners.
Under the Plan of responsible neighborhood, the company is trying to become a part
of the local community and act as a responsible neighbor. Wherever Tesco opens a new
branch, it tries to contribute something to the locals. For example, the company donates a
sum of money to the local children's home or retirement home.
In 2006, Tesco's Plan of responsible neighborhood committed to the idea, that the
carbon footprint will be decreased by 50% by 2020. The company is trying to stick to the
commitment with the gradual introduction of energy-efficient business units and
implementation of new technical solutions in existing stores. Earlier this year, Tesco even
opened its first energy-efficient hypermarket with zero carbon footprint in Jaroměř. The
environmentally oriented company also contributed in no small part to the environmental
changes by replacing the classical plastic bags (or their variants), or by introducing cleaner
road transport of alternative fuel, especially in large cities.44
Tesco Foundation, founded in 2009, whose main mission is to support nonprofit
organizations that deal with environmental protection and activities in social and health care,
specifically supports the following activities:45
• Education and training,
• leisure activities and talent development of children and youth,
• support of social projects and environmental protection,
• support for organizations, which are caring for disabled and socially disadvantaged
people,
• support for individuals in difficult circumstances,
• assistance in natural disasters,
• promoting a healthy lifestyle.
43 Web site of company Tesco Stores ČR plc: Tesco recognizes its social responsibility [online]. 2011 [cit. 3.24 2011]. Available from WWW:
44 Web site of company Tesco Stores ČR plc: Responsible neighborhood plan [online]. 2011 [cit. 3.24 2011]. Available from WWW: http://corporate.itesco.cz/zodpovedny-soused.html
45 Web site of company Tesco Stores ČR plc: Tesco Foundation [online]. 2011 [cit. 3.25 2011]. Available from WWW: http://corporate.itesco.cz/nadacni-fond-tesco.html
33
The Foundation announces annual grant management to acquire technical equipment
for primary and secondary schools. Winning projects can receive up to 100 000 CZK. The
Foundation also supports the collection of Tesco's Help the Children! and actively
participates in the charity’s Run for Life project, which aims to support the fight against
cancer and raise money for the treatment of cancer patients.
The following table shows how Tesco, through its charitable activities, donated to charity
in 2010.
Table : Value of donations for charitable projects of Tesco for 2010
Project Value of Donations
Tesco Foundation together with business partners for a collection of to Help the Children!
3 624 129 Czk
Run for Life 3 018 923 Czk
Grants of the Tesco Foundation 700 000 CzkTotal 7 343 052 Czk
(Source: Website of the company Tesco Stores ČR plc.)46
2.3.Cooperation with universitiesTesco very well understands that cooperation with universities today is a prestigious
agreement, which is advantageous not only for the college and its students, but especially
for the company itself. Tesco gets into the sub-consciousness of "the nation's elite”, which is
a very important group of potential job seekers. Tesco, within the framework of this
cooperation, has set itself the following objectives:47
• presentations of Tesco to students
• improvement of Tesco’s image,
• hold the current status and perception of Tesco as an employer,
• identification of talents and working with them,
• collaboration in projects,
• Exchange of information,
• Enhancement of good relations with the educational sector.
Tesco is very active in collaboration with universities. It regularly participates in job
fairs at universities (including fair chance of Economics), in lectures on selected topics, co-
selected social events and it is also actively involved in consultations and counseling
46 Web site of company Tesco Stores ČR plc: Tesco last year devoted to the needs in conjunction with partners over CZK 7.3 million [online]. February 3, 2011 [cit. 3.25 2011]. Available from WWW: http://corporate.itesco.cz/tiskova-zprava.html?id=722
47 Intranet of the company Tesco Stores ČR plc
34
bachelor and master theses. Tesco also provides students with a variety of internships and
temporary jobs as well as collaborates with secondary apprentice specialized schools.
Tesco in the Slovak Republic has even implemented a scholarship for fourth year
students of selected universities. The students get scholarships in spite of incomplete
university education to work for the company's headquarters, to apply their acquired
knowledge there and to start building their career. The company has the opportunity to once
again raise their future managers from the outset. If this project proves to be effective in the
Slovak Republic, Tesco plans to introduce it to the Czech Republic.
Tesco in the Czech Republic is currently working with these schools:48
• University of Economics in Prague,
• Czech Technical University,
• Masaryk University,
• VŠB-Technical University of Ostrava,
• Mendel University of Agriculture and Forestry,
• University of Economics and Management,
• University of Finance and Administration,
• University of Information Management and Business,
• University of Technology,
• Moravian University,
• University of Hradec Kralove,
• University of Pardubice.
2.4.Acquisition, selection and recruitmentTesco is a company that is constantly expanding and that is still opening new
business units. Of course, this is related to the growing need for new employees. Tesco is
trying to cover vacancies first from its own resources and if they fail to meet the demand for
labor in the standard way, they turn to the external labor market.
The Tesco staff learns about job vacancies through internal advertising. The
premises of vacancies are advertised together with the requirements on local bulletin boards,
under the responsibility of personnel managers of the branches. If any person from the staff
is interested in the offer, he must addresses the employer, and all the information will be sent
to him from his HR manager. The headquarters staff works with open positions introduced
either through similar boards or on the company intranet. Appropriate forms and personnel
contacts are also available there, which may be interesting as well. However, the employee's
supervisor must always approve of the internal selection process.
External advertising is most often done via the Internet. The Tesco website holds a
summary of vacant positions, which is structured on the basis of the areas covered by the
48 Intranet of the company Tesco Stores ČR plc
35
advertising concerns (traffic, distribution, headquarters, positions for graduates, etc.).
Individual job advertisements provide pertinent information concerning the job description,
requirements of the worker, as well as what the company can offer and also contact
information of the HR manager. Applicants can directly fill in the online questionnaire, which
electronically attaches to the cover letter and resume. Because the company has contracts
with the frequently used and visited job portals, it will automatically generate these
advertisements directly to them. In case of insufficient responses of the Internet advertising,
the company approaches recruitment agencies.
If Tesco opens a new branch, thus the need for a large number of new employees, it
usually pulls a massive campaign under which it expects a large response. A recruitment
center is then set up in a given location for the participants of the admissions process.
Employee selections of the most suitable people for the vacant position in Tesco,
usually consists of two rounds. First, collected resumes are evaluated and the selection is
narrowed, then structured interviews with the HR manager are carried out. Some candidates
also have to undergo a one-day assessment center for particular senior positions.49
Newly recruited employees, who have successfully completed the admission
procedure, are waiting for the stage of adaptation. Tesco prepares the adaptation program
that helps new employees to understand everything quickly and to integrate efficiently into
the workforce. The program of adaptation takes place at all levels of employment and lasts
three months or the whole probationary period. At this time, there is an agreement on the
priorities between an employee and his supervisor. At the end of the probationary period,
followed by evaluation of both the supervisor and the employee, who has the opportunity to
comment to the existing role in society. Subsequently, there will be a new agreement on
priorities.
Tesco's adaptation program has to bring a new employee the following:50
• orientation to the new environment,
• integration into the new working group,
• acquisition of new work,
• familiarization with the culture of the company,
• understanding of the company’s objectives and strategies,
• obtain information about the functioning of the company,
• understanding of the continuity of work between team members and other
departments,
49 Web site of company Tesco Stores ČR plc: The selection process [online]. 2011 [cit. March 27, 2011]. Available from WWW: http://corporate.itesco.cz/vyberove-rizeni.html
50 Intranet of the company Tesco Stores ČR plc
36
• obtain feedback on their work.
For Tesco, the adaptation program is significant for the following reasons:
• allows quick integration of new employees into the workplace,
• setting of cooperation with the new employee,
• relationships with colleagues and superiors,
• building teamwork,
• if an employee blends better with the new environment and feels as a part of the
company, it means that fluctuations will be reduced in the long term.
Tesco has a big interest in getting graduates, who have not yet had sufficient
opportunities to gain work experience and who are interested in professional growth in the
retail sector. Graduate programs in Tesco have now a tradition of more than ten years, at
which the company in the mid-2010 followed by running an innovative program for graduates
of universities, which focuses on educating new managers of the company. Tesco currently
offers three types of graduate programs:
• graduate program for retail,
• graduate program for distribution and logistics,
• graduate program for the department of central office.
Graduate programs are based on the principle of job rotation, when the student
graduates gradually work through the various activities, acquire new skills and knowledge
needed to successfully carry out their future managerial work. The entrance selections to
graduate programs take place twice a year and start from March and from September. The
selection process consists of a telephone pre-selection, personal interview and an
assessment center. Since July 2010, when Tesco started new graduate programs, they
signed around 1336 graduates. The company received a total of 3158 application forms. It is
clear from these figures that Tesco graduate programs are largely favored among
candidates, and they must pass a long way to successfully pass the entrance examination.51
2.5.Compensation and employee benefitsTesco is constantly trying to maintain a long-term remuneration of its employees at a
competitive level. Several unions of employees operate in the company, who are trying to
promote the best possible working conditions, and this applies, of course, wages. Tesco
management departments are always trying to come forward and, for example, last year
despite the ongoing economic recession, there was a nation-wide wage increase of 3.5%.
This increase was primarily directed to staff in operations.
The remuneration of its employees in Tesco has two forms:
• time wage is derived according to the related wage tariff,
51 Web site of company Tesco Stores ČR plc: Tesco this year plans to create up to 900 new jobs [online]. March 3, 2011 [cit. 3.28 2011]. Available from WWW: http://corporate.itesco.cz/tiskova-zprava.html?id=778
37
• contractual wage.
Time wage is intended for sales assistants / cashiers and managers of individual
sections of the premises. Employees of facilities with tariff pay get extra for the local
contribution, which depends on the amount of sales of the establishment. Executives,
managers, specialists and other employees of the central office are paid based on
contractual wages. The amount of the wage is then derived from the category of the worker.
Typically, contractual remuneration belongs to the job occupation, wherever in the system.
Here, the question of how to distinguish the financial performance of two different workers in
the same position arises. Tesco should therefore consider whether or not to include the type
of wage in the contract, where the component of performance would be included and it
would motivate employees to greater commitment – work with a certain feeling of justice,
that their above-average job performance will be appropriately remunerated.
The regular monthly salary Tesco provides to its employees includes a wide range of
employee benefits. Generally, it can be divided into two groups: surface benefits and status
benefits. While the area benefits are entitled to all employees, status benefits depend on the
performed functions and positions in the company. The rules of how benefits are provided
are determined by collective agreements and internal regulations of the employer.
Tesco currently offers the following benefits of the whole scale:52
• loyalty reward,
• rewards for work anniversaries,
• convalescent leave,
• contribution to food,
• contribution to pension,
• discounts for business partners.
Loyalty bonuses are one of the company’s tools of stabilization. The remuneration varies
according to seniority. Using these employee benefits, Tesco demonstrates that they value
their employees, who have been contributing to the good results of the company. A similar
function is performed by the o-called rewards for work anniversaries, which are in turn
determined by the length of continuous employment in the community. Frequently used
benefits that Tesco also provides to its employees are the contributions to pension
insurance. Every employee who has worked for Tesco for more than five years can be
granted this benefit. Again, a reward that motivates workers to work long-term for the
company.
We can say that Tesco offers its employees a relatively large number of different benefits
that are intended primarily to increase their satisfaction. Tesco, however, should consider
whether the employees are really interested in all the benefits offered to them and if some
other benefits may suit them as well. For example, introduction of a cafeteria system, or an
52 Internal materials of the company Tesco Stores ČR plc
38
optional menu system, where the employees themselves within the chosen financial limit, will
choose by themselves, what benefits they want to use, etc. The system would be
challenging for the organization, but it would increase the impact of the provided benefits of
the company.
In addition, the company should consider whether employees are sufficiently familiar
with the benefits they are entitled to and how to obtain them. With the Tesco's benefits, all
employees are awarded once already in the admission procedure. In the adoption period in
the company, typically everybody will receive a brochure "Welcome to Tesco", where all
employee benefits are properly described along with the conditions of obtaining them.
Because the benefits offer is being constantly updated, Tesco must ensure that all changes
are introduced to employees in time. In the premises, the employees have the opportunity to
learn all this information from the local boards, which the personnel managers of the specific
branches have to update regularly. In addition to message boards and brochures, all the
information is available on the company Intranet, where the lists of benefits along with the
terms of usage are also constantly updated. If Tesco implements radical changes in
providing benefits, it will certainly not rely solely on the message boards, but should follow up
with the appropriate training and provide sufficient information material to all employees.
2.6.Training and DevelopmentThe core of the company's success is human capital in the form of knowledge,
experience and skills of individual employees. It is therefore extremely important to
continually educate the employees and develop their potential and knowledge.
Tesco has been focusing on the education of its employees since their entry into society.
New employees get familiar with their work environment in the process of adaptation; they
are trained with the use of OSH manuals, receive needed materials to be able to work
properly, get advice from their experienced colleagues, etc. During the time in the company,
employees can use a variety of training courses, which enhance their knowledge, work
abilities and skills. Tesco provides its employees with a wide range of training activities,
which correspond primarily with the professional needs of individual employees and allow
them to move up the career ladder. The company organizes internal training sessions, which
are provided by HR professionals, experts in particular areas or experienced teachers, or
employees may even participate in educational activities organized by external companies.
Tesco introduced a new company process for the enhancement of management
performance for all central office staff - facilities managers, directors, senior managers, shift
leaders establishments and other staff with management responsibilities. The process is
designed to help employees to pay them for their good work according to their specified
expectations, and at the same time, to achieve continuous improvement goals - that
employees can develop their work, skills and behaviors. The performance of management
processes is performed in such a way that the employees write about their working process
and their career goals and their personal development plans every year. These documents
39
are then a basis for performance evaluation and staff development that takes place at least
twice a year.53
Since the company's headquarters are in daily contact with the British leadership body
and a considerable group of employees also comes from Great Britain, everyone in
management must be proficient in English. Employees of the central office undergo testing,
and those whose current level of English is lower than desired are entitled to free internal
lessons. Everyone can then improve in English via e-learning.
Another educational program, which must be compulsorily attended by all newcomers in
the central office and every other worker may voluntarily participate it, is called TWIST. The
program participants spend a week at a business unit or a distribution center and learn to
better understand the important work in the company.54
As commonly happens in companies, managers who sit in offices and make decisions
about operational processes have only theoretical knowledge about the subject but no
practical experience and then their actions can have a negative impact not only on the work
of employees in the company, but also on customers, who shop in Tesco stores. Tesco is
trying to avoid such problems and that is why TWIST was implemented. The program also
works vice versa. Employees in services can learn about the individual job descriptions of
separate departments in the central office. By making employees understand better the work
of their colleagues within the entire company, they find that everyone has their own place in
the company and it is not divided. It certainly has a positive effect on relations and the overall
atmosphere in the company.
We have to talk about the employees, who were admitted to the graduate programs
separately. Overall, the program uses the principle of job rotation, where graduates rotate
between teams within the department from time to time, acquiring individual work, gaining
new skills and knowledge to use in the future to successfully perform their managerial work
later on. Retail graduate programs last six months and are aimed at thorough trainings of
operational issues. That means manual skills, team management, analytical work, financial
management, logistics, etc. The alumni program for distribution and logistics is also a six-
month course and focuses on deepening knowledge and gaining new skills in distribution
and logistics. Graduates will learn a variety of optimization methods for logistics, and apply
the practical use of the methods (FIFO, LIFO, Just in Time), etc. The central office provides
annual graduate programs in the departments of marketing, finance, logistics, and human
53 Intranet of the company Tesco Stores ČR plc
54 Ibid.
40
resources.55 These programs are great opportunities for starting and developing careers in
the professional field.
Generally speaking, Tesco offers a wide range of educational activities for employees.
Some are mandatory for some employees because they need to complete them in order to
cope with all the work, each is connected to the profession they are doing. Mostly, these
trainings are voluntary. It is only up to the employees whether they want to improve their
skills to work above the desired level of their current job and build their own professional
careers in the company or not.
Trainings in general are very motivating for the employees; it is the right kind of
stimulation to work. This way, the employee sees that the company cares enough to provide
a training session and the obtaining of the new knowledge or skill motivates the worker to
use it and thus work better. This forms a worker that corresponds with the “theory Y” for
some time after the training session.
2.7. Industrial relations and communicationsCollective labor relations are embedded in the collective agreement and define the
relations between employers and trade unions. Unions in Tesco have a very strong position.
There are currently 31 active trade unions that defend the interests of protecting workers'
rights in Tesco. They are the ones, who make the annual wage increases to not only their
members but for all employees. Individual employment relationships are formed by daily
contact with their colleagues. Because Tesco is a company that employs over 14,500
workers in the Czech Republic, it is clear that the regular employee comes into contact with
only a small circle of colleagues. Tesco must have a sophisticated system of communication
within the company to make every employee able to get information that is just for him or
her.
Central office staff has a corporate Intranet. Here, one can learn a range of information,
which is necessary for the performance of their work, training activities, an overview of
benefits along with their way of working. It is possible to find important contacts of
colleagues, as well as corporate values, the current activities of the company, etc. The other
communication medium, which serves to inform employees of the central office are bulletin
boards and various brochures. Employees of individual departments are informed through
local boards, which are constantly updated by the personnel manager of the establishment.
The HR manager is a person who is responsible for employee awareness of the branch. The
most important information for the employees is available in the form of printed materials,
brochures and leaflets.
It is common that regular employees don’t like the management poking around,
gathering information behind their back. The employee can get the impression that his
55 Web site of company Tesco Stores ČR plc: Presentation of graduate programs [online]. 2011 [cit. 1.4 .. 2011]. Available from WWW: http://corporate.itesco.cz/predstaveni-absolventskych-programu.html
41
opinion does not matter and that he is there just to fulfill orders from the superiors. Tesco,
however, wants to prove that the views of their employees are not indifferent. Employees
have the opportunity to be part of what is happening in the company, to comment on the
present topics, to give suggestions how to improve the working environment and to discuss it
with the representatives of the company.
This cooperation of workers with managers in the stores is helpful to solve problems
such as bad air conditioning, dissatisfaction with work clothes, comments to the composition
of food in cafeterias, etc. Such situations are common, when the supervisors or managers
hear the comments of individual workers and then they ensure the redress.
The central office holds the Employee Forum twice a year. Each department can elect its
first representative. Elected representatives will then meet with the personnel director,
personnel manager and the appropriate central office director of each department and
discuss mutual views.
The Employment Forum in Tesco is used for:56
• building trust between members of the department and represented managers, and
to promote cooperation between separate teams,
• finding opportunities to improve working conditions
• help to streamline work and working processes
• determining the conditions for improving and maintaining good health and safety at
work for employees and customers,
• understanding of the needs of the various changes and helps to communicate about
the changes.
2.8.Care for employeesProper care for employees promotes employee satisfaction in the work environment.
In this regard, Tesco tries to do even more for their employees than what is included in the
legislature. Occupational safety and health care for employees at work is anchored in the
collective agreement of the company. Tesco makes sure that all its employees work in a safe
and not health-threatening environment. It is constantly working on improvements of the
working conditions, upgrading social infrastructure, improving the quality of meals, etc.
All employees of the central office and major facilities throughout the country have
the opportunity to use the services of the canteen, where they can buy a proper meal at
discounted prices. Employees can choose from several types of main meals, soups, salads,
desserts and drinks. The corporate catering has changed and now follows the trend of a
healthy lifestyle. This was done based on employees’ request. Employees can enjoy healthy
snacks in addition to typical Czech cuisine. There are also small kitchens at all facilities and
employees are able to use them at any time according to their needs.
56 Intranet of the company Tesco Stores ČR plc
42
Most of the activities extending beyond the statutory standards or other internal
regulations, which are common to all employees, will vary according to the facility. Each
establishment itself determines what activities will be organized for employees. This may
include various balls, corporate events, Christmas parties, etc.
If a company constantly discovers new wishes and needs of their employees and
then adapts to care for them, it can achieve not only employee satisfaction. Therefore, Tesco
makes an annual employee satisfaction survey, which is called "Our opinion". The results of
the survey give management the information about the overall satisfaction of employees with
concrete examples of areas that can still be improved, so the company can create the best
possible working conditions.
3. Questionnaire for employees of TescoI carried out a sociological questionnaire of employees of the Tesco company. 79
people were interrogated and they were asked to answer the following 10 questions:
1. How old are you?
2. What kind of education do you have?
3. How long have you been working for Tesco?
4. Are you satisfied with your job?
5. Are you thinking about leaving to another job?
6. Do you like to go to work?
7. Do you think that Tesco offers enough space for your personal development?
8. To what extent do you think Tesco cares about its employees - Please rate using the
scale of 1 to 5 (1 is best).
9. Would you recommend Tesco as an employer to your friend?
10. What bothers you most at your present work?
This questionnaire was carried out throughout the Tesco company. 79 workers and
employees in this organization took part in it.
Judging by data from Tesco, people from 25 to 35 years of age generally work in
Tesco, their quantity makes 35 people out of 79 employees in a percentage ratio is about 44,
30 %. The rest can be seen in the chart.
43
<183%
18-2519%
25-3544%
35-456%45-50
8%>5020%
The second question concerned the level of achieved education. Most of the
workers, concretely 61 people from 79, have secondary education and 9 had university
education. The rest had no higher education. We can say that Tesco offers jobs to truly
anyone.
The third question specified how long the worker has been working for this company.
The larger part of respondents, 37.97% has been working there for less than 1 year. 24.05%
of the questioned workers had been working there for more than 5 years. And the last group
consisted of people, who had worked there for 3-5 years representing 18.99% of the group.
The following chart indicates the data from the next question – whether the workers
are happy at work. 35 respondents answered positively which is about 44.30%.
Nevertheless, 18.99 % of the respondents aren't happy with their employment. 15 workers
(18.99 %) answered with mostly yes and 14 (17.72 %) with mostly not satisfied. We can see
that the answers are spread almost evenly with the option yes having the most votes, so that
points to a generally good employer.
44
Mostly NO18%
Mostly Yes19%
No19%
Yes44%
The next question asked whether the workers were looking for another employer (or
considering it). The majority of 40 people answered that they are not looking for anything
else. 15 people (18.99 %) of the respondents nevertheless plan to find new work for
themselves. And 12 people couldn't decide on the precise answer. 15.91 % answered with
the most likely option and 15.91 % of the respondents answered that most likely not.
The following question asked whether the employees like to come to work.
Respondents answered as follows: 44.30 % of respondents answered yes, 20 (25.32 %)
workers answered no, and 24 persons couldn't decide on the exact answer. 13 of the
workers inclined towards the positive side and 11 people (13.92 %) were more for the
negative answer.
Mostly No14%
Mostly Yes16%
No25%
Yes45%
The seventh question asked whether the employees think that Tesco helps its
employees to develop themselves, if the Tesco company provides them with enough
possibilities for their personal growth. It is possible to say with confidence that the majority of
45
employees (35 %)agree with this statement. 20 people who make up nearly 25 % of the
whole answered that the are not provided with such opportunities. 18,99 % doubt that their
employer gives them such opportunity, 5 people most likely agree with it, but aren't really
sure. And 11.39 % of the respondents inclined to the negative answer, that such an
opportunity is not present. Nevertheless, the employer can be sure that it does a lot for the
growth of the employees because 60 % of respondents confirmed it.
The following question gave the workers the opportunity to grade the employer on a
five-point scale (1 maximum assessment) in accordance to how the company cares about
their employees. The highest assessment given by 39 employees(49.37 %). 2 was awarded
to the employer by 12.66 %, in other words by 10 people. The grade 3 was given by 12
people and only 2 people gave Tesco a 4. And at last one, the worst assessment, was given
out by 20.25 % of the respondents. This is depicted in the following graph..
"1"49%
"2"13%
"3"15%
"4"3%
"5"20%
The following question asked whether they would recommend Tesco as an employer
to a friend. 32 respondents (40.51 %) would do so with great pleasure, 15.91 % wouldn't do
it, and the rest of the 35 wouldn’t think about it that much as the consider Tesco to be at least
a good and honest employer.
46
Relationship with bosses
49%
Relationship with colleagues
19%
Low salary13%
Inability to career growth16%
Other3%
And the last question asks about what bothers the workers most at their work. the
majority of 49% of people consider the interpersonal relations important and has some
troubles with their bosses and 19% has troubles with their colleagues. About 13% of the
respondents are upset about their low salary and 16% of the respondents are afraid that the
will not be able to grow professionally in their position. And the rest, about 3% of the
respondents are more disturbed by other things than the above-mentioned. This research
shows a different side to the overall story. Nonetheless, the majority of the employees is
satisfied with their jobs.
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4. ConclusionsThe analysis of Tesco (the selected company) was conducted successfully – enough
information was gathered in order to either accept or reject the previously stated hypotheses.
The first hypotheses: Tesco has a well developed Human Resource management
system with great emphasis on the satisfaction of the employee can be accepted. The
research showed, that Tesco puts great emphasis on the satisfaction of their employees. The
services provided range from information availability to training and feedback systems.
Tesco is well aware of the fact that proper care of employees promotes employee
satisfaction. Safety and health precautions are all in place and the working environment is
constantly being developed according to the employees’ needs.
Tesco also conducts regular surveys called “Our Opinion” where the employees
share their views about the work in general, the working environment and where they can
also express their own ideas for improvement. Tesco managers pay great attention to these
surveys and try to do their best to improve as much as they can.
Another important aspect is that Tesco has well developed its internal
communication via the Intranet. Communication with employees is very important not only to
keep the employees updated, but also to inform them about current events. Tesco sees it as
essential to keeping their customers up to date, which is a good thing and also contributes to
the acceptance of the first hypothesis.
The proper care for its employees can also be seen in the way they care about their
new employees. In the introductory period, the new employees are introduced to the
corporate culture and structure of the company, they are provided with welcoming brochures,
they are guided by supervisors for the first several months of their new job and they are also
enrolled in special training sessions. These training sessions provide proper information
needed for their job as well as learning new skills in order to perform their new jobs better.
It is also important to mention that these training sessions are not provided only for
the new employees, but also for the current employees, for whoever wishes to attend and
expand their views or knowledge as further development in their jobs. All these factors also
contribute to the acceptance of the first hypothesis.
Tesco also holds Employment Forums where the supervisors and managers listen to
the ideas of the regular employees of lower non-management positions. This also shows that
Tesco really cares about their employees.
The compensation of employees is also relatively competitive. Tesco was able to
raise their salaries by 3.5% on average even during the economic crisis in the past years, as
well as offer different form of remuneration to its employees. Tesco also holds a hire-from-
within culture that shows trust towards its employees. So, these facts also support the first
hypothesis.
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The second stated hypotheses: Tesco implements Human Resource goals into their
overall business strategy can be partly rejected, but the answer is not so simple. Tesco does
have specific HR goals and visions set, and as can be seen above, Tesco really takes good
care of their employees, but the overall vision of the company is as follows: “The vision of the
company is based on high quality goods, low prices and continuous improvement of
services.” That does not really include its employees. But, Tesco is currently one of the most
desired employers, so the idea that they have an employee strategy and goals concerning
the employees has to be known somehow.
The focus on employee welfare is obvious, even though it is not included in the public
vision of the company. The HR department has its goals and ideas clearly set. Otherwise the
focus would not be so great.
The internal plans obviously calculate with the focus on employees and their well-
being, because Tesco’s focus is not only on high profitability, but also on its employees who,
in Tesco’s definition, form the basis of its success. This shows great emphasis on the
employees as being essential parts of the company. Nonetheless, not all strategic plans for
the future can mention anything about employees (i.e. finances or sales goals).
We can easily conclude, that Tesco values its employees and does as much as it
can to help them feel valued and develop their skills to better suit their occupation and
further career. The internal plans for the employees look great, but as the primary research
showed, the employees feel the need for more and better care. Tesco should definitely focus
even more on their own employees than in does now, all of them.
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