Introduction.

This report will present detailed analyses of Tesco PLC, using secondary data to access
the objectives and goals of the organisation, conducting research of its responsibilities,
relationships and barriers, in particular, communication from an internal management
perspective, and finally the organisational strategy for improvement, coinciding with
SWOT analyses to aid the organisations strategy.

Business Goals.
The organisation has one vision, to create a highly valued business by, the customers
they serve, the communities, and teams, finally, their shareholders, this statement
expands on into five key corporate components, and these components are:
1.
2.
3.
4.
5.

Wanted and needed globally.

Continuous growth, creating opportunities.
Modern, innovative with lots of ideas.
Local winners, whilst applying our skills to a global market.
Inspiring, earning trust and loyalty from our customers, colleagues and communities.

Whilst these goals outline the aspirations of Tesco senior managers, the importance of
the middle management being involved enthusiastically, is the determining factor for a
successful implementation throughout their respected regions and site teams, to drive
consistency locally to grow their business. (Business case studies: n.d).
Within the organisations regions and sites, key performance indicators are in place to aid
with turning goals into objectives, below is a typical dashboard used internally by Tesco
to highlight business growth from the consumer, presented in a digestible with easy to
read data. (The KPI Institute: 2013).

Business Objective.
Currently operating grocery stores in 12 markets, and employing over 500,000
people, the business is taking specific steps to achieve its goals, despite a current fall
with its market share, and closures of 43 unprofitable stores, the organisation
focused on a new directive in 2015, following a six-point plan implemented in 2012 to
drive sales and service levels following aggressive reductions with staff across all its
UK grocery business levels by up to 8000. (The Telegraph: 2015).
There is good news with the business, 250 million pounds of internal cost savings
were created in 2014, these will be re-invested back into the business, through
recruiting an extra 4,652 customer-facing employees, and developing a plan with its
top 100 suppliers, with reviews set for 18 months. (Retail Week: 2015).

Direction & Culture.

A new directive consists of a three-point plan, applying in the interim, more focus on
a short-term plan, a plan that will remedy the 2014 crisis, implemented by Dave
Lewis the new director of the business, these key goals are listed below. (Retail
Week: 2015).

1. Regain competitiveness in its UK business.

More shelf space for top 1000 lines.

Relocate head office to Welwyn garden city.
Cut prices on branded product.

2. Strengthen the balance sheet.

No dividend payments for 2014/15 financial year.

Company pension changed from a defined benefit to contribution.
Close Tesco broadband.

3. Rebuild trust and transparency.

Improve trust in pricing policy.

Simplified performance measures.
Launched supplier helpline.

To coincide with these objectives, all Tesco supermarkets have a steering wheel tool,
focusing on the value added, covering every aspect of the industry locally, sharing
the results with all staff, which digests the overall objective. (Our Tesco: 2015).
The headline Britains largest retailer is shutting stores, postponing new ones and
cutting its prices, had little impact on a decline in business growth, following
improved UK Christmas sales in 2014, with an increase in shares, up by 5.5% to
191p, as a result of appointing Matt Davies as the company boss, recently appointed
from Halfords, following a successful era where profits increased with new market
approaches. (The Guardian: 2015).

Research Analysis.
After losing 20% of market value in 2014, this unstoppable giant in the retail sector
has been battling aggressive competition the last three years, with an internal issue
with incorrect profits being made public, created due to the way the business books
payments from deals with its food suppliers, and the horse meat scandal widely
reported through the press.
Middle management at Tesco, have experienced extensive changes since 2013, with
more aggression to turn around its domestic business, 50 job roles were made
redundant in 2013, as part of a re-structure below senior management level,
following the earlier profits warning in 2012.
On the back of good fortune, through extensive recruitment as part of the companies
specific goals prior to its 2014 crisis, the decision has been taken to remove team
leaders from its larger stores, resulting in 3000 job losses.
Another significant move, has been the promotion of Tony Reed, currently the One
Stop CEO, who is widely credited for increasing sales and profits at One Stop, Tony
Reed will now head the companys small format divisions, which brings together
Tesco Express, Metro and of course One Stop under one sector, allowing the
business to consolidate its buying across the complete format. (IGD.com: 2015).
This strategy is showing signs of progress, with an indication from Tesco that its
current campaign to cut prices on 300 popular brand lines by 25%, is just a snippet of
its ambitions to tempt shoppers back, the business capital expenditure will be 1
billion pounds, down from the 4.7 billion in financial year 2008/09, that said, Tesco
will continue to open new stores where opportunities present.
Exciting changes are emerging in their larger stores, from high tech self-checkouts,
that free checkout staff to help shoppers, and a New-York deli food to go, named
FREDs at their London based stores. (IGD: 2015).

Responsibilities of middle management.

Middle management within Tesco PLC, has seen extensive changes since 2013, with
more aggression to turn around its domestic business, 50 roles were made
redundant in 2013, as part of a re-structure below senior management level,
following the earlier profits warning in 2012.

Tesco PLC has reduced management levels considerably since Dave Lewis was
appointed to turn things around, there is less focus on a matrix structure, followed by
fewer overheads, with more dual roles created, and Dave Lewis himself has a dual
role in corporate chief executive and UK chief executive. (Retail week: 2014).
The role of a middle manager employed within Tesco PLC, is defined as a leader and
manager, as a leader they are to drive the business core culture, one that empowers
colleagues to do the right thing for its customers, and to build strong relationships
throughout the business, finding better ways of doing, whilst being open and willing to
learn, using these insights to develop the business. (Tesco-Careers: 2015).
As a manager, they are expected to earn customer loyalty through the quality of the
product and service, continuous development of the management team, ensuring
coaching, feedback and plenty of encouragement, being a talent spotter and
mentoring future talent to grow future leaders, ensuring a strong plan is in place, and
finally, putting them in the local communities where their business operates, and
being a responsible neighbour. (Tesco-Careers: 2015).

The effect of interpersonal relationships.

Tesco is a global employer, resulting in many cultures, ages and beliefs working
together for the common goal of the organisation, using many theorists work, to aide
with ensuring and enhancing strong interpersonal skills, that are preliminary driven by
management, but forms the responsibility of all, as according to Laurie J Mullins,
social interaction is a natural human feature, but ensuring harmonious working
relationships and effective teamwork is not an easy task. (Mullins et al: 2014).
Tesco implements the MAYO effect, a theory developed by Elton Mayo, which
suggest that boredom and repetitiveness of tasks can reduce motivation, and
promotes the following factors as remedy, (Business case studies: n.d).

Importance of communication.
Improved teamwork.
Show interest toward others.
Involve others in the decision-making process.
Ensure Wellbeing.
Make work interesting and non-repetitive.

These factors are set to staff through personal development plans, with every
member of Tesco having a personal plan, aside from the MAYO theory, Tesco also
implement HERZBERG, a two-factor theory developed by Frederick Herzberg in
1959, whereby Frederick splits needs of an individuals recipe for motivation, and
places them into two sectors, one being satisfied, and the other hygiene, Herzberg
demonstrates the essential motivators, and the touch points, seen below, (Scribd:
n.d).

Communication Barriers.
Communication forms the root for business to function, communicate and grow, at
Tesco it is performed through the company Intranet, newsletters, in store
noticeboards and weekly 1-to-1 discussions with management, daily meetings
carried out, updating staff on what is planned for the day, supplying feedback on the
previous days result, whilst handing out value awards, that can be given by any staff
member to another, Tesco use this as a way of celebrating achievements. (Our
Tesco: 2015).
However, barriers can neglect effective communication, being a large organisation at
home, the most effective way for Tesco management and senior staff to
communicate is by email, Use of email, however, raises concerns, one such being,
the email may not be read in a timely manner or could be ignored, other aspects
come from management, whereby bad communication to staff and line managers
may not transmit effectively, or as intended, therefore a result could be frustration
with staff and line managers, causing potential losses of business opportunities. (Our
Tesco: 2015).

Strategy for improvement.

By applying SWOT analysis, allowing marketers to identify environmental risks, can
they be evaluated, with measures adopted and implemented to mitigate against
adverse effects with a businesss external change to its market. (Kotler et al: 2013).
Tescos strategy has become clear during the last quarter of 2014 since the
appointment of Dave Lewis, with more transparency on where it wants to be, and
how it will achieve the strategy, the key being, how to build momentum in its UK
market, consolidating foreign markets and moving away from non-core business,
emphasising a greater reliance with its UK supermarkets with further cuts to
investment, could create a longer recovery. (Euro Monitor: 2015)
Tesco is in the worlds top 100 most valued brands, and the third largest retailer in
the world, whilst many opportunities exist to enhance their brand, threats and the
recent internal crisis, are still fresh, being the number one grocery chain in the United
Kingdom, means they are a constant target from Sainsburys, Asda, Morrisons and

increasingly Aldi and Lidl, and also the effects with town planning, and n intolerance
by consumers for out of town supermarkets, coupled with an increasing concern for
the local shop, can be a barrier for Tescos expansion plans. (The Telegraph: 2014)

Summary.
A large retailer that invites the consumer inside, ensuring success locally through,
presentation, design, attitude, price and ease, the business has experienced tough
times of late, financially balancing its books, making sensible business decisions to
ensure pace of growth is maintained into the near future.

References.
Business Case Studies. n.d. A Tesco case study. [ONLINE] Available at:
http://businesscasestudies.co.uk/tesco/vision-values-and-businessstrategies/introduction.html#axzz3g8c6dkZc. [Accessed 17 July 15].
Business Case Studies. 2015. Motivational theory in practice at Tesco. [ONLINE] Available
at: http://businesscasestudies.co.uk/tesco/motivational-theory-in-practice-at-tesco/themayo-effect.html#axzz3h4Vd3itA. [Accessed 27 July 15].
Euro Monitor. 2015. Tesco Plc in Retailing . [ONLINE] Available at:
http://www.euromonitor.com/tesco-plc-in-retailing/report. [Accessed 23 July 15].
IGD.com. 2015. Tesco: new strategy shows signs of progress. [ONLINE] Available at:
https://www.igd.com/Research/Retail/retail-outlook/26625/Tesco-new-strategy-showssigns-of-progress/. [Accessed 22 July 15].
Kotler, P., Armstrong, G., Harris, L.C. and Piercy, N.F. (2013). Principles of marketing 6th
ed. Harlow, England: Pearson Education Limited. p52.
Mullins, L.J., Christy, G. (2013). Management and organisational behaviour. 10th ed.
Harlow: Pearson Education Limited. p309.
Our Tesco. 2015. How We Communicate Together. [ONLINE] Available at:
https://www.ourtesco.com/how-we-communicate-together/. [Accessed 24 July 15].
Retail Week. 2015. Tesco boss Dave Lewiss three-point plan: the progress so far.
[ONLINE] Available at: http://www.retail-week.com/sectors/food/tesco-boss-dave-lewissthree-point-plan-the-progress-so-far/5074245.article. [Accessed 21 July 15].
Retail Week. 2014. Tesco's Dave Lewis overhauls management: What the analysts say.
[ONLINE] Available at: http://www.retail-week.com/companies/tesco/tescos-dave-lewisoverhauls-management-what-the-analysts-say/5066880.article. [Accessed 22 July 15].
Scribd. N.d. How Tesco put theory into action. [ONLINE] Available at:
http://www.scribd.com/doc/170530388/Case-study-Maslow-Herzberg-and-Tesco#scribd.
[Accessed 27 July 15].
Tesco Careers. 2015. Store Manager. [ONLINE] Available at: http://www.tescocareers.com/Jobs-in-Stores-and-Centres/Stores/Store-manager.aspx. [Accessed 24 July
15].
The Guardian. 2015. Tesco turnaround plan what the analysts say . [ONLINE] Available
at: http://www.theguardian.com/business/2015/jan/08/tesco-turnaround-plan-what-theanalysts-say. [Accessed 21 July 15].
The KPI Institute. 2013. from vision, mission and values to KPIs at Tesco. [ONLINE]
Available at: http://www.performancemagazine.org/from-vision-mission-and-values-tokpis-at-tesco/. [Accessed 17 July 15].
The Telegraph. 2014. Tesco share slide has investors catching a falling knife. [ONLINE]
Available at: http://www.telegraph.co.uk/finance/comment/11065765/Tesco-share-slidehas-investors-catching-a-falling-knife.html. [Accessed 24 July 15].
The Telegraph. 2012. Tesco: the six-point turnaround plan. [ONLINE] Available at:
http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/9210998/Tesco-thesix-point-turnaround-plan.html. [Accessed 20 July 15].

Tesco A return to growth through stake holder

engagement.

The Introduction of Analysis.

This account will investigate Tescos grocery organisation, by applying the
organisational plan to cement itself, as the leading grocery chain within the United
Kingdom, by expanding titles into distinguishing points, then providing arguments
where applicable for each subject within its context.
Following the initial downward sales trend of 2012, a decline which continued through
into 2014, resulting in a drop with market share, created in turn, by losing focus with
the consumer, and taking its position for granted, whilst showing no aggression,
followed finally with two fresh scandals in 2014, being, the horsemeat and irregular
forecasting to the City, all affected the organisation, which accounted for lower
consumer confidence, and external investors suffering losses, this report will look at
the organisations plan to return growth in the business.
Methodology.
This report will apply focus toward the companys new directives, analysing how they
measure performance, whilst reviewing contingencys that could hinder a quick
recovery, by reporting the competitions focus for retaining, and expanding market
share, whilst reviewing recent market changes across the broad range of key
businesses in this industry field, using secondary data, that applies focus to Pestle
and Porters 5 forces.
Improving Consumer and Stakeholder Confidence.
Turnaround.
Tesco announced that 180K more customers used its stores in the first quarter of
2015, resulting in sales volume increments of 1.4%, this strengthens the strategy
implemented by Dave Lewis, providing a clear distinction that the company is
currently being run very well.
Shares were up 0.40p, to 1.95p, from the previous low of 1.55p (TSCO.L), as the
organisation attracts shoppers back to its stores, the last quarter presented good
news for the Tesco CEO, Dave Lewis, following aggressive price cuts on popular
branded product, improved availability of product and employing more staff for their
stores.
Despite the fall in food prices, affecting the industry as a whole, Tesco said UK shop
sales, for shops trading longer than 12 months, fell by 1.3% in the 13 weeks to May
30th 2015, the organisations first quarter, which was better than analysts forecasted,
and an improvement on the last QTR of 2014, these were also better than recent

figures released from Tescos rivals, Asda (WMT.N), Sainsburys (SBRY.L), and
Morrisons (MRW.L).

Shareholders.
As is the case with many organisations experiencing tough times, often there is a lot
of bad news in the early days, which can lead to investor sentiment declining,
however longer term, is probably the most successful formula for turning a business
around, allowing it to start afresh, by implementing new plans, points and strategies.
Furthermore, the plans to rationalise the business, only stand to make Tesco more
focused and more efficient, with current profits, and in time, producing a more
profitable business, with current evidence highlighting that the strategy is working, as
shares are up 23% on 2014, with net profit forecasted at 15% growth for 2015, rising
to 28% in 2016, all make this an appealing investment option for shareholders alike
as the business implements its strategys. (Peter Stephens: 2015)
Tescos cost cutting, and asset sales, will reduce the organisations debt, to regain its
investment grade credit rating, and rebuild credibility, coupled with reduced prices on
300 branded products within quarter one, created from a shake-up with the supplier
base, whilst more focus applied to best sellers deciding on shelf placement locations.
Customer.
Sir Terry Leahy reported that Tesco eroded the consumers trust, the erstwhile chief
executive said it had lost its reputation for low costs, paired with what he drew as a
failure of leadership with his predecessor, Philip Clarke.
The companies nearest rival at the time Asda, were now 6% cheaper than Tesco,
and the reason described by Sir Terry, was down to the leaders, not the business, or
the people, who work hard every day throughout the business. (BBC News: 2015).
To lure consumers back to their stores, Tesco has implemented three big ethical
ambitions, the first being to lead in reducing food waste, starting with new packaging
designs, highlighting the seriousness of their corporate responsibilities, whilst helping
the consumer apply thought to their purchase, this campaign is called Love Food,
Hate Waste, which provides food waste hints on many fruit and vegetable products.
Their second ambition is to ameliorate health, by removing sweets and chocolates
from their checkouts, a movement that first was implemented 20 years ago by the
supermarket giant, and will implement healthier snacks at checkouts from 2016.
Finally, their third ambition is to create opportunities for young people, named, the
Tesco youth academy, this will aid in the soft skill development, to assist the younger
generation with securing employment. (Tesco plc: 2015)

Internal staff.

Tesco has announced a bonus scheme, it is hoped this will aid with motivating, Dave
Lewis the new CEO states, the outcome to achieve improved morale internally, called
a turnaround bonus, which will be worth up to 5% of salary if sales targets are met.
This bonus is trying to do something specific, with a short term aim to address the
current failings, as the company remains in a significant period of organisational
change, the best way, short term to have employees buy into this change, is to
reward everybody within respected individual stores.
Finally, the steering wheel, a unique tool used to drive performance, and is the
responsibility of its store team members, it works as a key performance indicator for
its people, finance, customers, operations and community, one example of a steering
wheel target, would be to reduce the amount of carrier bags handed out by 25% over
a two-year period.
Management responsibilities and changes.
Tesco has struggled for a number of years to return its core business to growth,
following the appointment of Dave Lewis, with some executive management asked to
step aside, and replaced with insiders, creating a new team, with fresh ideas, and
hungry for growth, adopting this strategy, creates a top-down approach to fixing the
business.
Around 1000 managers have left the Tesco business since the appointment of Dave
Lewis, with most redundancies taking place on June 2015, equating to 22% of the
total number of roles decided surplus to requirements, by removing two tiers of
management, following initial consultations in February 2015, these roles are deputy
and support management, with a further 55% having agreed to take lower paid roles,
and 23% moved into new roles with no pay effect.
External Factors.
A report compiled by KPMG, for Tescos UK operations highlights the discount stores
as being the new threat faced, affecting not only Tesco, but other main-stream-retail
organisations that operate in the same field, a trait that was national news through
2014, resulting with the retail think tank (the RTT), performing a thorough analysis to
measure the impact from the discounters on the big four chains.
Despite changes affected by recent recessions in consumer behaviour, the RTT
believes that its difficult to see a damaging impact on the big fours hold on the main
grocery market, due to the 75% market share the big four control in the UK market, a
share that has existed for over ten years. (KPMG: 2014).
Investor Confidence.
Investors have reacted positively to the changes being implemented, they also note
that the group is experiencing the pain of job losses and store closures, which will
reduce overheads by up to 30%, and is essential to allow the group to turn a profit in
a shifting landscape, resulting with Dave McCarthy, an analyst at HSBC, presenting a
report compiling the bold decisions that Dave Lewis is prepared to make across all
business areas, to balance the sheet.
Bruno Monteyne an analyst at Sanford Bernstein, expressed concern with the
immediate changes announced, saying the announcement by Dave Lewis is only the

first steps, its a turning point in the road, he said, and a lot more needs to happen
before Tesco is out of the woods, in effect, a plan is one thing, applying is totally
different.
Risk.
A central challenge for any business, is to identify potential hazards or apparent risks
faced, only then can a business adequately plan to counter the effects, with Tesco
the initial focal point needs to be concentrated within stores design, branded
discounts, and more team members helping shoppers, aided by quirky new
marketing initiatives through technological offerings and consumer choice. (Tesco
plc: 2014)
Tesco has strengths with its market share through its presence, and strong brand
names, however, its brands also sell at competitor stores, with food prices increasing
to an average of 22% during the last six years, and according to the government
publication The Food Statistics Pocketbook, median incomes have remained static,
or fallen for the poorest 10%, compared with Germany and France, the food prices
only increased by 12%, No wonder the discount stores, such as Aldi and Lidl have
successfully absorbed hard pressed consumers.
Dave Lewis stated, this is what a Tesco of the future will be like, and to start he has
changed the way Tesco buyers, trade with suppliers, by removing complex
purchasing techniques, whereby buyers negotiate prices, based on successful instore promotions that are funded by suppliers, this will be achieved by rebuilding of
relationships, and talking cash not promotional display, and Tesco are confident this
will lead to purchasing product at lower costs, thus combatting the discounters.
Summary.

Performance Measurement.
According to a business case study of Tesco, strategy, vision, values and objectives,
are deemed useless unless their impact is measured and evaluated, this is why
Tesco use a variation of methods to collect data, in order to evaluate progress of
implemented plans, one long-term success strategy is the Tesco Club card scheme,
which draws attention from individual shopping habits and spend, that when the
national data is put together, it creates an image of overall shopping habits, from this
data, Tesco can try solutions and monitor via the Club card transactions.
Tesco applies stretching targets, these are inspirational targets, with targets set by
each store manager, these are then brought together as a target for the board to
review and monitor their overall performance, allowing, where required a drill down
into individual stores, to apply focus on successes or failures, allowing the
organisation to act. (Business Case Studies: 2014).

Looking Forward.
Tesco has witnessed a transition, not seen before with its pace, ambition and leaner
internal management, the reason, to re-build trust across all stakeholder formats, to
be competitively placed in the market, and regain its market share.
No department is left untouched under the new regime, Tesco wants change now,
which has resulted with cancelled contracts, new contracts and expansion of
contracts, one such contract that has been culled, is that of Widen & Kennedy
London, an advertisement company, who have been responsible for Tesco television
advertising the last two years.
A new appointment has been made with Bartle Bogle Hegarty, they have just
resigned their partnership with Waitrose and John Lewis, in order to take on the
Tesco account, Dave Lewis is looking forward to working with BBH, and reconnecting with the consumer through the living room. (Campaign: 2015).

Conclusion.
Tesco has witnessed many aspects of failings internally, which have resulted with
creating the problems experienced, and for a long period, Tesco failed to improve
relationships with suppliers, created partly, with the organisations internal
procedures, as a business they lost ground with the consumer, from discounted
product, to store designs.
Despite the organisations falling market share since 2012, Tesco continued to use
the United Kingdom element of its business to expand global presence, so a topdown response to combat the organisations ailing figures was required, and
appointed Dave Lewis, the man with a plan, who has created short-term benefits,
through an increase with shareholder confidence, as no department was left untouched, assets were sold to aid the deficit, with new scheduled stores shelved, and
unprofitable ones closed.
Dave Lewis then set out to consolidate the business, making it leaner, being
responsive with suppliers, and listening to the consumer, the result, an increase on
share value, aided with the announcement to consolidate its smaller operations, One
Stop and Express, under the leadership of one person, which will increase buying
power for smaller outlets, and focus on expansion within this sector short term.
Tesco are not yet clear, and as Dave Lewis implements changes as quickly as they
are identified, it will only strengthen its UK operations, with Tesco, still committed to
increasing investment through local community projects, and providing young people
with the opportunity to gain skills in retail.
The new technological impacts will also create an entirely new shopping experience,
with store revamps, new self-checkouts, more team-members on the ground, and a
new American/Italian Delhi, will offer the consumer more options at improved cost,
finally, resulting with market share increments, by reclaiming lost consumers, taking
advantage of the recent market share loss of its rival Asda, whilst Tesco begins its
recovery. (The Guardian: 2015)

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The Guardian. 2015. Asda shows worst sales in 20 years as Tesco begins to recover . [ONLINE]
Available
at:
http://www.theguardian.com/business/2015/mar/10/asda-shows-worst-its-salesperformance-in-20-years. [Accessed 28 August 15].

Overview.
A report compiled on the organisation Tesco, reviewing, and discussing talent
management, how does the organisation fair now, when compared with previous
CEO tenures, also analysing secondary data to compile the positives or negatives,
and what the organisation can do to improve any negatives.
This report will build on similarities and differences between the employment levels,
and why the organisation has chosen to follow a choice with its talent management,
and finally addressing the processes involved, to ensure participation and success,
when recruiting, identifying talent, and how the organisation engages and retains
talent.

Talent management at a glance.

The focus on seeking out talent is not a new concept for Tesco, it was first
announced in 2002, whereby potential staff would be profiled at interviews, then
added to a database, which would aid the organisation in identifying how best to
recruit different skill sets for specific roles.
Tesco currently employ an external company to assist with not only promoting talent
within its business, but to identify talent also, without neglecting internal staff, instead
identifying and nurturing management to identify talent within respected locations,
this company is named the full potential group (TFP), they are used as a tool to aid
with the organisations talent vision, by strengthening its leadership capability
throughout the business, the TFP currently supports the development of 1000
personnel managers and 50 group managers within Tescos stores.
The TFP only focuses and develops current talents whilst measuring individual
capabilities, starting with enhanced management roles, making available, training
solution providers, and enforcing Tescos strategies alongside theirs, providing the
skills and tools to develop their careers through the TFP talent development
programme. (TFP: 2015)
Yet, this is a recent implementation by Tesco, according to a report by the CIPD
compiled in 2008, following a conference by Mark Roberts, who at the time was
Tescos talent manager, who stated talent spotting is an everyday activity at Tesco,
across all employment roles, he goes on to mention, that the approach to talent
management is underpinned by three traits, detailed forecasting of people
requirements, career discussions separate from appraisals, and talent planning
amongst managers. (CIPD: 2008)

Mark Roberts is still employed by Tesco, however, following the appointment of the
TFP, Marks new role is a reward professional, based in the HR department, still
responsible for overseeing the talent management programme, albeit using the
external resources and skills of the TFP. (Linkedin: 2015)
However, and unfortunately according to Sir Terry Leahy, the business has
experienced a brain drain of vastly experienced, high-level staff, who had left the
organisation during Phillips Clarkes tenure, and the report compiled by the chartered
management institute, highlights a similar message, although through individual
manager struggles, with the difficulty of recruiting appropriate candidates, that match
the talent model they are measured against.

The CMI report was based on the future forecast, which surveyed 1,200 managers,
and found that 72% encountered problems in 2014 with recruiting the talent needed,
which was a 6% rise in 2013, with just under a third of those managers surveyed,
considered developing future talent within current teams a priority. (CMI: 2014)
To contradict the above report findings, the organisation in the same year as the
management survey took place, won the award for learning and development within
larger companies, named the personnel today award, keeping separate from the
fresh debacles the business found itself burdened with, but instead only addresses
the internal workings of the organisations drive for diversity, and highlighted that post
2012, Tesco had implemented a seven-point plan to adapt internally, through
recruitment, training and development plans, a plan for the future success of the
business, one that will continue to focus on internal promotions. (Personnel Today:
2014)
The seven steps implemented:
1.

Business needs analysis.

2.

Simplifying of leadership skills.

3.

A three-day leader experimental programme.

4.

Created a leadership toolkit.

5.

Large scale day events, sharing best practices.

6.

Integrated its 10-month communication plan.

7.

Aligning the KPIs with the business vision.

Diversity and Inclusion.

When we talk about diversity we mean respecting and valuing all forms of difference
in individuals, as with recent years the requirement toward talent management has
become a priority for many organisations worldwide, likewise Inclusion is about
positively striving to meet the needs of different people and taking deliberate action to
create environments where everyone feels respected and able to achieve their full
potential.
For Tesco without an inclusive policy, they risk missing significant talents and have
modified their social responsibilities to enhance their diverseness, in 2012 Tesco
launched an ABC (African, black British, and Caribbean) network in the United
kingdom, coupled with the fastest growing LGBT (lesbian, gay, bisexual and
transgender) network in the United kingdom. (Tesco plc: n.d.)
Tescos diversity strategy is at its core, with recruitment, training and developing, this
strategy is evident in how the organisation aligns its KPIs with its vision, and
coinciding with the organisational analysis of needs, exposes the vision to create a
strategy is heavily focused on by HRM, applying strategically to ensure a correct
balance of potential talent is recruited.
However, organisations that have an approach to talent management and diversity
can often find that integration, with the employees, is not developing neither are they
accessing the widest possible pool of talent, Tesco, however understand this, and
have implemented further strategies to meet these needs, the word develop being

key, and one that is implemented throughout the talent spotting process. (Business
Case Studies: n.d.).
Tesco are proud of their diverse approach to attracting and finding talent, they
themselves state, we aim to attract and develop talent, wherever it exists, and one
defining factor in all this is Tesco recognise talent can be held back, simply through
fear or other barriers, and they are keen to mentor and provide support through the
organisations self-governing employee engagement programme, which aims to build
confidence and inspire colleagues, whose potentials are on hold, currently the
organisation has four self-governing programmes in place.
Retirement ages have disappeared from Tesco, but their responsibilities before this
are not affected, as the organisation finds that customers value its older employees
experience, but they continue to roll out graduate programmes, apprenticeships and
the Tesco youth academy.(Tesco plc: 2014).

The responsibilities of HRM.

A question and answer session performed online by Osney HR presented an
opportunity for HR professionals, to put their questions around the basis of talent
management, to Judith Nelson, the personnel director for Tesco UK.
One question being, should employees review the competencies and behavioural
traits required, to include them in the talent pool, and, therefore, begin to assess
themselves against those competencies, and Judith discusses the open and honest
approach to colleagues performance and potential, stating it is essential for all
employees to understand the core values, and the leadership skills required, these
are core to the way in which Tesco operates.
There is a simple model at Tesco when reviewing potential talent within its ranks,
using a four-point criteria, consisting of a sharp mind, great leadership skills, and
strong values, coupled with a track record of achievement, and without the ability for
employees to review themselves, it will be hard for an employee to know their
strengths and development areas, that they can then set a PDP to work toward
improving in a professional aspect, and Tesco believe that this should be the case,
and implemented from the Human resource element. (Nelson: 2013).
Tesco managers remain the key for identifying and nurturing talent, the talent
management strategies used by Tesco for its managers, are controlled by an external
company, which highlights that yes, Tesco are serious around talent, but the
emphasis is on management by management, before moving down to ground root
employees, and although Tesco utilise to great success as we see with previous HR
awards, they also make the most of social media to identify talent, proven by winning
Best of Social Media awards in 2013.

The HRM Strategies.

What does an employer look for, qualifications, skills, personality, responsibility and
availability, these are some defining justifications for successful recruitment, Tesco go
further beyond this generic genre, with the attitude and ability to provide great
customer service, taking into account the diversity of its demographics, from race,
age and finances.

What are the foundations behind this concept and how is it driven, implemented and
measured from a strategic point of view, firstly, the requirement the organisation
strives toward, is ensuring the right number of people in the right jobs at the right
time, to achieve this the organisation requires a structured process, to attract
applicants, for management and operational roles.
Workforce planning is a process used to analyse the organisations likely future
needs, considering an amount of people, skills and locations, this allows the
organisation to plan, at Tesco a workforce planning table is used, to establish
demand, this planning process is run every year, from the last week of February,
followed by quarterly reviews, aiding an automated process to adjust staffing levels
and recruitment when the need arises.
The two key processes within the workforce plan are split between management and
employees, presenting a basic policy to work with, for employees, the business will
set ambitions, targets and training goals, and demographic management will be
responsible for driving the strategy with recruitment and promotions, by identifying
technical skills, competencies and behaviour required, and to assist an employees
development through training and additional targets of responsibility. (Business Case
Studies: n.d.)

Attracting Talent.
A key deciding factor with most potential recruits, is internal business feedback, the
directions and approaches the organisation implements, then creating success, and
offer opportunities for current staff and prospective, at Tesco a set of essentials are in
place, based around responsible trading and are measured locally using KPI, s.
The organisation sets five areas that it cares about, with a strong measured
approach, available from the society review document located on its plc site, these
areas briefly consist of:

1.

Trading responsibly.

2.

Building strong partnerships with suppliers.

3.

A zero carbon emitter by 2015.

4.

Being a great employer.

5.

Supporting local communities.

These points stand for so much, they attract people to the organisation, and highlight
its ethical stance, making them a part of the community, also creating interest from
shareholders, and educating sustainability.
Internal Recruitment at Tesco, is performed by reviewing their internal talent plan, a
simplistic strategy, but one that highlights to the business, the ambitious employees
who are looking for a move, either at the same level or through promotion, if no
suitable candidates exist within the talent pool, then Tesco will advertise the role
internally on its intranet for two weeks.
External recruitment is carried out on the organisations website, www.tescocareers.com, and sometimes stores can be found advertising internally on boards, for

candidates who approach the store with their CV, or apply via the Job Centre Plus,
the store will add them to a waiting list, and call them when an opportunity becomes
available.
For roles that can often be challenging to fill, such as bakers and pharmacists, Tesco
will advertise through offline media, and in some historic cases, through local
television and radio, and although expensive and avoided where necessary,
sometimes it can be necessary to finding the right people.

Summary.
We see an extensive programme in place at Tesco, one that has evolved over the
last decade, and has been nurtured by incoming CEOs, there is no doubt that Tesco
implement a solid strategy to counter potential issues that could arise, simply through
experience of their human resource department.
Talent sourcing and identifying runs in the companies culture, to the extent where
business KPIs are aligned to ensure participation of local management, and the
external companies brought in to aid the organisations focus through talent, aided
also by the its recruitment strategies, which apply focus to creating a diverse culture
of people within, to further enhance its cultural reach and integrity.
Talent is sought out through various directions, from exposing talent, recognising all
of its employees as being a talent, and exposing talent by removing personal
barriers.

Bibliography.
Business Case Studies. 2002. Attracting and recruiting. [ONLINE] Available at:
http://businesscasestudies.co.uk/tesco/recruitment-and-selection/attracting-andrecruiting.html#axzz3n0ipoEki. [Accessed 30 September 15].
Job and Talent. 2013. What does Tesco look for?. [ONLINE] Available at:
http://www.jobandtalent.com/uk/l/tesco-jobs/posts/what-does-tesco-look-for.
[Accessed 28 September 15].
Personnel Today. 2002. Staff profiling allows Tesco to target talent. [ONLINE]
Available at: http://www.personneltoday.com/hr/staff-profiling-allows-tesco-to-targettalent/. [Accessed 30 September 15].
Tesco PLC. 2014. Society Review. [ONLINE] Available at:
http://www.tescoplc.com/files/pdf/responsibility/2014/tesco_and_society_review_201
4.pdf. [Accessed 29 September 15].
The building futures group. 2013. Talent management & Diversity. [ONLINE]
Available at: http://www.thebuildingfuturesgroup.com/wpcontent/uploads/2014/03/TMandDiversityInsightPaperFinal03131.pdf. [Accessed 24
September 15].

References.

Business Case Studies. 2015. Using diversity and inclusion to provide better service.
[ONLINE] Available at: http://businesscasestudies.co.uk/tesco/using-diversity-andinclusion-to-provide-better-service/diversity-and-inclusion.html#axzz3mjYgawh0.
[Accessed 25 September 15].
Business Case Studies. n.d. Recruitment and selection. [ONLINE] Available at:
http://businesscasestudies.co.uk/tesco/recruitment-and-selection/workforceplanning.html#axzz3n0ipoEki. [Accessed 29 September 15].
CIPD. 2008. Talent spotting is an everyday activity at Tesco. [ONLINE] Available at:
http://www.cipd.co.uk/pm/peoplemanagement/b/weblog/archive/2013/01/29/talentspotting-is-an-everyday-activity-at-tesco-2008-04.aspx. [Accessed 23 September 15].
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Judith Nelson. 2013. Q&A Session with Judith Nelson, UK Personnel Director for
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HRM 2015B,
Tesco
PLC. 2014. Rewards.
Being a great employer. [ONLINE] Available
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Benefiting
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Introduction.
This assignment will apply focus to employee rewards at Tesco United Kingdom, presented
in a logical format that will firstly understand, what is meant by an employee reward, followed
by how its managed, whilst discussing the strategies used to drive coherence, and the key
roles human resources have to strategically ensure success.
Ensuring criticality through evaluation on Tescos approach to employee rewards, by
analysing the key rewards, reviewing how they are measured, and used as personal
motivators, dependant on an individuals reason to attend work, be it social reasons or pay.
Presenting benchmarking with similar industries to better understand comparisons and
directions taken to achieve similar goals, allowing for reflection in the assignment summary,
for thought, feeling and ideas.

Employee Rewards.
According to the chartered institute of personnel and development (CIPD), employee
rewards are how an organisation rewards its employees in accordance to their value within
the organisation, it covers financial and non-financial rewards, and is something given or
received in return for a service, to understand the way in which people are valued, can help
shape the effectiveness of an organisation. (CIPD: 2015).
Managing these rewards is essential to create fairness for the organisation and the
employee, thus ensuring higher motivation levels throughout, the important factor to start
with is through pay, this is the real reason people work, also employees can see financial
compensation as an entitlement for being an employee of a given organisation, or as a
reward for over performing. (HRM Guide: n.d).
Tesco Rewards.
A number of employee benefits are provided by Tesco, with seven being unique, whilst
Tesco also offer standard benefits, that are found with many other employers schemes, such
as a company pension and life assurance, also a company share save scheme, which
provides free shares following a one year service, the enrolment and information for these
benefits can be obtained through a line manager or personnel manager, and are visible on
the benefits board. (Our Tesco: 2015).
Below is a list of the unique employee rewards available at Tesco.
1.
2.
3.
4.
5.
6.
7.

Tesco travel discount.

Tesco bank discounted services and products.
Tesco childcare vouchers.
Tesco mobile discount.
National leisure discounts.
Health and Wellbeing benefits.
Privilege card.

Additional benefits available for employees, are through the fit for life programme, which
launched in 2014, and aims to support all employees to achieve a healthy work life

balance, many stores have an onsite gym, rugby team and cricket, and regular 5-aside
football tournaments as well as squash.(CIMA: 2015).
Lifestyle breaks are available, these provide up to 12 weeks unpaid absence from work,
and guarantees the employees are recruited back, or for employees requiring a longer
term absence, the career break benefit offers between 6 months and 5 years. (Business
case studies: n.d).
Tesco provide a personalised annual report, which employees receive every October,
this is named the benefit report, and is all tailored specifically for individual employees,
covering their salary, their shares in the organisation, what discounts they have received
on the available benefits, be it 10% reduction on store produce, or a discounted phone
invoice through Tesco mobile.
Strategies through HRM.
According to the HRM guide, two basic payment schemes exist, these are a fixed level of
pay, where salaries or hourly wages do not change, however, they can increase through
a pay rise, and a reward linked to performance, which can be daily, weekly, monthly or
annualised, this scheme is predominantly found within sales sectors. (HRM Guide: n.d.).
The components of such are generated from an organisation's strategy, coupled with the
HR strategy, taking into account pay and grade structures, and can also be met through
performance management. (CIPD: 2009).
Tesco formulates a comprehensive human resource strategy, that aims to integrate
employee training as a key part of the organisation's culture, this itself is a benefit, albeit
a non-financial benefit, but one that can attract prospective employees into its operations
as being seen as a benefit, which is personal to some. (LinkedIn: 2013).
To ensure individual and team productivity improvements, management are tasked with
developing good working relationships with them, and according to Tesco, this is
achieved in part, by the development of an employee relations team, whose
responsibility and therefore focus, but not limited to, is to develop and help to implement
policies to ensure its effectively managed. (Ely News: 2015).
Tesco is committed to its people, and reward management is high on the organisation's
strategy, to be the first choice for consumers and employees, and most importantly
retaining their current pool, as a result, Tesco employs a reward manager.
The reward manager is responsible for a small team of two, whose main focus is reward
policy, with tasks that include, developing policies for employee pay, whilst providing
advice and guidance to relevant stakeholders within Tesco, predominantly senior
management across their UK stores, whilst create and defining a 3 year plan on how to
best deliver. (Tesco Careers: 2015).
Managing the Rewards.
Tesco realise the importance of success depends on the performance and contribution of
every employee, whilst they also acknowledge that outstanding performance is driven by
great teamwork, meaning that their approach to reward throughout the organisation, is
guided by a framework, which integrates common objectives with company principles, as
illustrated below. (Our Tesco: 2013).

Key performance indicators are a tool used locally to measure both operational and financial
performance, they apply full focus to group performance, and strategy, providing an indicator
of the performance of the local stores and the entire group's performance, and highlighting
where both are within respected financial targets, allowing for a visual barometer for
employees to see how close to potential bonus they are. (Tesco PLC: 2012).
The objectives and principles are the responsibility of Tescos strategic human resource
management (SHRM), they focus on long term objectives, through addressing and solving
the problems encountered with people management related issues, by setting out a
departments key responsibility to increase employee skills, by concentrating on business
problems outside of human resource management, implementing Tesco strategies to
improve employee productivity, motivation and skills.
To ensure success with Tescos approach through SHRM, the organisation aligns its goals
across all business levels, by rewarding positive behaviour, an essential part to ensure
organisational success, this is achieved in part, by understanding individual needs, this is
essential, and can aid with reducing staff turn-over, by recruiting the suitable candidates,
then training and orientating them, creating career paths, and ensuring the organisational
rewards are provided, and that the teams are aware of any targeted rewards too.
Conveying the reward.
Tesco convey the rewards through employee handbooks, the company intranet and
boards, however employees will need assistance to achieve their personal goals, whilst

putting the effort in to achieve the organisational goals, this is carried out through
performance management, laying the stepping stones for personal gain, it also ensures
the management and organisation can better measure parameters that effect the
organisation as a whole, ensuring correct feedback.
Performance management can provide employees with training and development,
creating the skill sets to carry out their role successfully through their own ability, helping
to create innovation, new behaviours, and cross functioning integration.
According to Michael Armstrong, people leave managers and not organisations, which
suggests that affected organisations are failing to have their managers understand their
role in motivating and managing performance adequately, Michael Armstrong goes on to
state, Human resources face challenges with supporting managers through developing
their people. (Armstrong & Brown: 2006).
Driving individual performance.
Individual performance varies with individual employees, and how they are employed, be
it temporary or permanent, for a temporary employee, their motivation could be to secure
a permanent role, and for a permanent employee promotion could be an individual target,
as recognised by Matthew Brown, managing director of the Giant group.
Strategies to identify and retain low skills, is well documented, more so in the retail sector,
where quality through customer service is at the core of an organisations strategy, Tesco
researched and segmented its employees into five distinct groups, work to live is one of
those groups, and is made up predominantly of long serving female workers over the age
of 35. (Dr Patrick McGurk: 2014).
Likewise Elton Mayo suggests motivation in a place of work is promoted by six factors,
consisting of communication, teamwork, wellbeing and creating interesting tasks, a theory
practised at Tesco, and according to Neha Sethi, this is promoted through training and
development initiatives, and through communication, which is considered an important
factor at Tesco to motivate employees.
Every year employees are invited to complete a staff satisfaction survey, named
Viewpoint, this aims to deliver opportunities for employees to express personal views on
almost every aspect of their job, Tesco use these results to ensure it makes work better for
its employees whilst enhancing the customer experience.
Programme motivators.
A management study guide highlights the importance of using a favourite treat to motivate a
child to perform their homework, the same is applied with employees throughout many
organisations, meaning employees are assets of an organisation, and are vested in, by
understanding their individual strengths and motivators. (MSG: n.d.).
Tesco recognise the Herzberg theory, which covers two factors, satisfiers and hygiene
factors, the satisfiers concentrate on recognition, the job, responsibility and prospects, and
the hygiene consists of salary and rewards, job security and working conditions to name a
few, Tesco motivates employees by paying attention to hygiene factors, whilst enabling the
satisfiers.
Tesco motivates and empowers its employees by appropriate communications in the form of
delegating responsibility and involving employees in decision making, for example, the
organisation holds annual forums, and their purpose is to provide employees the opportunity,
to be involved in elements of discussions around pay rises. (Business case studies: n.d).

Jim Riley of Tutor-2-U, presents a report compiled by the Guardian, that Tesco employees
are working to achieve a turnaround bonus, worth up to 5% of salary if targets through
sales and profit are met, with the potential payments being made with company shares.

Rival comparison.
Tesco invest heavily in pay, firstly their hourly rate of pay for a customer assistant in the UK
is around 7% higher than Morrisons, Asda and Sainsburys, aided by an increased pay for
under 18s, and was introduced in line with adult pay in September 2010, equating to an 87%
increase on current minimum wage levels for this age group, this created the overall
average.
When comparing Morrisons, Asdas and Sainsburys employee benefits, to that of Tesco
similarities are found with the standard offerings, all offer discount cards, share save
schemes, bonuses and long service awards, however the difference is found when reviewing
each benefit individually, the difference can be substantial, one key focus for attracting new
recruits, is through pay, and Tescos rivals, Morrisons, Lidl and Sainsburys have increased
employee salaries above national minimum wage this year. (The Guardian: 2015)
Employee privilege cards for example, offer discount in store, and usually are provided after
just 6 months service, apart from Sainsburys and Morrisons, who provide the card on
commencement of employment, Morrisons even provide an additional card for a family
member, all cards offer a 10 percent discount in-store, with only Tesco allowing club card
points to be acquired whilst saving on a shop. (E4S: 2015).

Executive Summary and conclusion.

The importance to communicate rewards and opportunities to employees is very important,
and what this insight into reward management at Tesco has presented is, the organisation
understand the importance of reward options, whilst ensuring effective management and
disclosure, Diana Strom notes employees are increasingly more engaging, when their
organisation creates a just, predictable, rewarding and motivating environment in which to
undertake work.
The United Kingdoms unique economic position, magnified by current economic challenges
forthcoming, that involve the living wage, many organisations face a stark reality of
scrapping benefits altogether to offset the increase in salaries, Tesco have recently
highlighted the cost to them will be 500m by 2020, likewise with other countries, a rise in
salaries has led to a loss of employee benefits. (The Telegraph: 2015).
The fact that employee rewards and benefits at Tesco are strategically linked, means the
ongoing focus will be to enhance and improve into the future, integrating employees into a
training and reward culture, managed through KPIs aligned with principles and objectives
through organisationally set factors.
We see the organisations drive to create departmental extensions, ensuring further control
over the vision it wants to implement and drive, and theories such as Herzberg being
recognised and cross referenced with internal rewards and benefits.

What more can organisations do to better improve work for employees, does the focus need
to apply financial focus?, this would be dependent on employee groups, for example the
work to live group of employees may be motivated by more free time.
So the outcome could be happiness, so an important message to consider when reviewing
rewards, is that of Brian Chesky, a strong culture means its easy to trust everyone to do
right, be they or the role independent or autonomous, for a company promotes an
entrepreneurial culture, can take our next woman or man on a moon leap. (Fast Company:
n.d).

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