Subject: Human Resource Management

Case Study:

Tesco is the biggest private sector employer in the UK. The company has more than 360,000 employees worldwide. In the UK, Tesco stores range from small local Tesco Express sites to large Tesco Extras and superstores. Around 86% of all sales are from the UK.

Tesco also operates in 12 countries outside the UK, including China, Japan and Turkey. The company has recently opened stores in the United States. This international expansion is part of Tesco's strategy to diversify and grow the business. In its non-UK operations Tesco builds on the strengths, it has developed as market leader in the UK supermarket sector.

Tesco needs people across a wide range of both store-based and non-store jobs:

1. In stores, it needs checkout staff, stock handlers, supervisors as well as many specialists, such as pharmacists and bakers.
2. Its distribution depots require people skilled in stock management and logistics.

Head office provides the infrastructure to run Tesco efficiently. Roles here include human resources, legal services, property management, marketing, accounting, and information technology .

Tesco aims to ensure all roles work together to drive its business objectives. It needs to ensure it has the right number of people in the right jobs at the right time. To do this, it has a structured process for recruitment and selection to attract applicants for both managerial and operational roles.

Tesco's core purpose is to provide the customers the best services.

Tesco's organizational structure has the customer at the top. Tesco needs people with the right skills at each level of this structure. There are six work levels within the organization. This gives a clear structure for managing and controlling the organization.

Each level requires particular skills and behaviors.

Work level 1 - frontline jobs working directly with customers. Various in-store tasks, such as filling shelves with stock. Requires the ability to work accurately and with enthusiasm and to interact well with others.

Work level 2 - leading a team of employees who deal directly with customers. Requires the ability to manage resources, to set targets, to manage and motivate others.

Work level 3 - running an operating unit. Requires management skills, including planning, target setting and reporting.

Work level 4 - supporting operating units and recommending

strategic change at the top level. Requires good knowledge of the business, the skills to analyze information and to make decisions, and the ability to lead others.

Work level 5 - creating the purpose, values and goals for Tesco plc. Responsibility for Tescos performance. Requires a good overview of retailing, and the ability to build a vision for the future and lead the whole organization.

Question:

1. Consider the work levels at Tesco and suggest international staffing approaches for each of the levels. Justify your answer with appropriate reasons and analyses.

2. How does culture affect the operations of an MNC, such as the case organization, Tesco?