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7/22/2019 Case Study on HRM in Retail Sector
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Importance of Diverse Work Force in retail industry; a case study on
Tesco, Plc
Objectives.
Objectives can be used to analyse and evaluate the literature research, on the
usefulness and the effectiveness of HRM practices which manage the diverse
work force in retail industry. Its main objectives can be given as follows.
o analyse the current HRM approaches used by the organisation for
managing the diverse work force.
o analyse the importance of diverse work force in retail industry.
o analyse the advantages and disadvantages of diverse work forces in
retail industry.
o recogni!e the factors needed for attaining the competitive advantage
through diverse work force in retail industry.
In order to carry out the above objectives the following analysis are necessary.
". #hat are the parameters that affect the relationship at work among
employees of different cultures$
%. #hat are the different HRM approaches taken by the organisation for
managing diverse work force$
&. How the organisation can gain competitive advantages through diverse
work force$
Introduction
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As the organisations are becoming more international that increased the level of
competitions in the business world. That caused new challenges in the global
markets and so the retail organisations are trying to develop new strategies for
reducing those issues. Thus they recognize the importance of diverse work force and
develop new strategies for managing them because the diverse work force is the
success factor of an organization. So the effective management of them brings
competitive advantages to the organization. That increases their importance and
they try to implement new strategies for managing the people having different ethnic
and socio economic back grounds. They keep different types of relations as per their
cultures. So this need to be materialized and must observe best practices to
manage them effectively (Albrecht 2000. So the organisations must consider the
local state federal laws! local country profile! the country culture etc for the effective
management of this diverse work force.
Researc !ack"round
his research proposal is intended to research and find out some real facts about
the diverse work force in retail industries. he topic of the research is 'the
importance of diverse workforce in retail industry, a case study on esco(. he
human resources are very essential for an organi!ation because they are doing
all the important functions of the organisations. )s a retail industry is
considered, there are work force from different countries, regions etc. *o it is
the duty of the management to handle and manage this diverse workforce
effectively. )s a valuable and important resource, they must be given important
care because all the functions of the organisations are taking place with the help
of these people. +or that researcher can use the related primary or secondary
data for collecting information about their importance in retail industry.
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Retail business is a booming industry of the current age. It is a vibrant industry
with lots of fastest changes. he word retail is taken from word retailer, means
cut into piece. hey sell products and the services to customers for family as
well as individual use. he retail industry can be divided into different types
based on their si!e, the shape, the products and their services, the charging price
etc. hey may be chain stores, supermarkets, speciality stores, factory outlets,
the franchises, discount stores etc. )s the dynamic field, they offer employment
opportunities for diverse work forces. hey offer about two million jobs around
the world web, ref. -
Here the selected organi!ation esco, as a retail industry, recruiting workforce
from different countries and they give e/cellent services to the customers. he
diverse workforce from different countries has different practices and culture.
Hence this research aims at evaluating the importance of diverse workforce in
esco for measuring its effectiveness and thus find out the pitfalls andrecommend the right corrective action.
Literature Review.
Introduction
The present era of globalization! enforce the world to mingle with diverse work force
from different backgrounds! cultures! believes etc. "ew developments in the social!
economical! political and demographical environment changed the countries to the
multicultural societies. #n the present competitive environment it is essential for the
retail organizations to take effective strategies to gain competitive advantages in the
field. According to $reen and his friends! the competitions arising from all continents
and diverse work force are the part of this world economy ($reen et al! 2002.
%iverse work force are the main a&is that runs the retail industry! so the success
and the failures mainly based on the attitude of the diverse work force because of
the relevance and interdependency of one country with all other countries ($upta et
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al 200'. So the importance of diverse work force is a main factor for the retail
organizations and the managers have to decide upon the importance of these factors
and move with it.
The human resources are very essential for retail industry because they are doing all
the important functions of the organisations. As a retail industry is considered! there
are diverse work force from different countries! regions etc. So it is the duty of the
management to handle and manage this diverse workforce effectively. As a valuable
and important resource! they must be given important care because all the functions
of the organisations are taking place with the help of this diverse work force. or that
researcher can use the related primary or secondary data for collecting information
about their importance in retail industry.
)anaging the diverse work force is an important factor for the retail industry. or
Tesco! an international retailer! having operations in about '* countries! have lots of
diverse work force. #t manages this diverse work force worldwide and that brings
some challenges also. So to manage the situation effectively they need to adopt
some approaches. The dissertation focuses on the importance of diverse work force
in retail industry and tries to analyze the strategies that help to manage this diverse
work force in their organizations.
Retail Industry
+etail business is a booming industry of the current age. #t is a vibrant industry with
lots of fastest changes. The word retail is taken from word retailer! means cut into
piece. They sell products and the services to customers for family as well as
individual use. The retail industry can be divided into different types based on their
size! the shape! the products and their services! the charging price etc. They may be
chain stores! supermarkets! specialty stores! factory outlets! the franchises! discount
stores etc. As the dynamic field! they offer employment opportunities for diverse
work forces. They offer about two million ,obs around the world (web! ref. -
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There are about three million people are working in the retail industry (data collected
)arch 0. That is e/ual to the '' of total 1 employees. (1 +etail utures
20''3 Sector Summary! %ata monitor. or about the of gross domestic product!
$%4! of 1 is produced by retail sector. (5eb reference 2. The retail sale in 1
was about 627- billion in the 2008 that is more than combined economies of the
countries like 4ortugal and %enmark (1 +etail utures 20''3 Sector Summary!
%ata monitor. The ,obs in retail industry are related to the economics and the
consumer trends.
The retail market in 1 may increase '- in size in the coming - years with a value
of 69'2bn (1 +etail utures 20''3 Sector Summary! %ata monitor even though it
slows down the annual growth and may faces challenges. :ritish retail consortium!
the :+;! the trade association of the retailers is selling the wide range of products in
all centers and stores. #t helps to get the right information about the retail business.
(www.brc.org.uk. in retail industry! the surviving sector is the electrical section and
with a growth of 2* (1 +etail utures 20''3 Sector Summary! %ata monitor. The
retailers of home sector may face the tough period because of the falling prices of
houses and the people are more cautious on moving homes.
The changing concepts of diverse work force.
#n this era of changing perspectives! there are many challenges in the business
world because of the changes in the views of diverse work force and the retail
organisation
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Employee.
An employee is an individual! borrowed by the employers for doing certain ,obs and
there must be a strong relationship between the employee and the retail
organisation. (+eference3 web.02. An employee is a labour that works as the tool
and her or his behaviour is manipulated for the profit of retail organisation and can
be replaced when that is dilapidated (Aswathappa 200. They are the resources of
an organisation because they are being used for organisation
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work force as most important asset. So the diverse work force are e&pected to know
the business functions! solve the problems! develop proper future plans and develop
the organization to run (web reference.2. The diverse work force is the human
resources for an organization and that is used for benefit of organization! society and
the diverse work force itself. (Aswathappa 200.
The HRM concepts.
>+) is applicable to all sections of the management like in selection! manpower
planning! salary administration! performance appraisal! training and the management
developments ()ishra 200'. As per )ishra! >+) has three main concepts they are.
The diverse work force working for retail organization is a valuable source and
so it is essential to put effort and time for the development ()ishra 200'.
The human resources have own characteristics so it can
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Different types of diversity in workplace.
There are different types of diversity e&ists in work place. They may be of ethnicity!
gender e/uality! socio economic! language! disability! culture! age! se&uality! gender
identity etc. This list goes the long way and determines who are we as the individuals
and doesnarris
Sussman! it is connected with relations! connections! the interactions of the crossing
lines. #t consists of many things like the organizational life! the diverse work force
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different places and the employers are interested with these kinds of diverse work
force because of their e&cellence. They need to be encouraged for developing a vast
culture. (5eb ref. 8
As per the trend of today! most retail organizations e&pand their business to
overseas for more e&pansion ($wendolyn ;uizon! 200=. So they need to employ
diverse workforce without any discrimination of gender! ethnicity! age or race
($wendolyn ;uizon! 200=. As globalization is the overpowering trend in today! 2009. That is as the
activities of the organisations spread to different countries! it re/uires the need of
diverse work force from different places and cultures because these heterogeneous
diverse work force can satisfy the re/uirements of the markets and the customers.
(;unningham and $reen! 2008. Also diversity encourages the diverse work force
and gives those opportunities for attaining competitive advantages for the retail
organization. #t helps the retail organisations for making efficient operations in
different places by make use of the e&cellent diverse work force (%wivedi! 200'
The management of diverse workforce.
The retail organisations need diverse work force in their international operations for
gaining better improvements because they need the service of them for dealing with
people of different cultures and backgrounds. So for benefits and success all retail
organisations must handle this diverse work force carefully (Amaram 2008. As per
+oosevelt! the managing diversity is the broad managerial process that develops the
environment to all diverse work forces to work with. (+. +oosevelt Thomas! '==-!
:eyond +ace and $ender.
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#n the present scenario! America is the better e&le of this reflection of diverse
work force in their retail organisations. There is a mi&ture of diverse work force from
different race! religion! gender! age! and other social and environmental
backgrounds. So America as the melting pot for diverse work force doesn
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!dvantages of diverse work force.
#n retail organization the diverse work force plays the key roles for their business
developments and success. That is this diversity increases their organizational
performances. The diversity helps to retain the best diverse talented bodies in
organizations (Amaram 2008. Thus by having those diverse work force they can
enhances the following things
#ncrease the adaptabilityC The diverse work forces helps to solve different
problems in sourcing! servicing! and the allocation of the resources. The
diverse work forces have got practical talents and that helps to suggest
fle&ible ideas for adapting to the fluctuating customer needs and the market
situation ($reenberg 200*.
To increase the organizational fle&ibilityC The presence of diverse work force
helps the organization to challenge the very old assumptions so that they can
construct better work style ("elson and Duick 2000.
5iden the service rangeC The diverse e&periences and the skills help the
retail organization to serve diverse customers even in the global basis
($reenberg 200*.
#mprove the employee moraleC As the diverse cultures of diverse work force
are valued and recognized! that increases the morale standard and thus gives
an increase in retention ("?5 200.
Eots of view pointC As the diverse work force has variety of ideas and the
e&perience that helps to meet the re/uirements of the customers! the retail
organization and their business strategy ($reenberg 200*.
The innovation and the creativityC The innovative retail organisations creating
more diverse work force for increasing their creativity ("elson and Duick
2000.
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>igh alignment with the vendorsC The diversity helps to settle and deal with
vendors of diverse cultural backgrounds in globally and thus enable the retail
organization to understand and recognize their believes and values for
keeping better relations with them ("?5 200.
?&cellent e&ecution F As the diversity is recognized and encouraged the
diverse work force is inspired for doing their high abilities and so that helps to
increase the productivity! the profit and the return on their investments
($reenberg 200*.
The diversity enhances the /uality of staff by entering the untouched pools of the
talents. #t increases the customer confidence because it gets the service of /uality
work force. The retail organisations have to make constant reviews on their progress
by changing and adopting new approaches! plans! the policies and strategies. That
in turn results in high morale and standard to the retail organisations and the diverse
work force as well.
Thus the best strategic approaches bring profits and developments to the retail
organization. The long term plans and its success are as the result of its diverse
talented work force because these diverse bodies donate fresh and innovative ideas!
views! the perspectives! the values! the corporate values etc. Also the diverse work
force helps to communicate with the diverse customers effectively. Thus by linking
the strategies with special goals like the retention! the performances! the morale! the
bottom line etc the organization can gain long term success. :y building the
business with the help of diverse talented bodies and personalities! they can allowthe diversity to work for the success of retail organization.
#ustification of researc
he changes of the market environments demand the right persons for right job
for every organisation. )s a retail organisation is considered, the environment is
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different for the diverse work force. he uncertainties in the business condition,
high cost for hiring employees, maintaining the diverse work force etc demands
the need for the better management of these employees. )lso the changes of the
government rules and the regulations on the employment procedures, the
changes in the technology, the need of rightly skilled and trained labours for
meeting the re0uirements of the organisations etc lead to the employee
management 1ressley "222.
)lso with emergence of globali!ation, there emerged so many new markets in
the world and it increased the level of competition. *o the organisations must
beware of the conse0uences of this and must be very vigilant for better
prospects. )s a result they have to do effective management of their employees
for performing well in the field. he human resource management HRM is
concerned with the dimension of the employees within the organi!ation. he
human resources are people, who work for organisation Har!ing and
Ruysseveldt %334. *o the management of those people is a need and important
for the success of the retail organisation
$ypotesis
Hypothesis
This section will be discussing the hypothesis which will be testing on while conducting this
research. s stated earlier! this research will be "ainly #ocussing on the concept called
hypothesis. $"portance o# %i&erse 'or( )orce in retail industry* a case
study on Tesco! +lc . his research is based on the functions of a retail
industry and its importance of diverse work force. In this age of globali!ation,
the distance from one continent to other has decreased and it shows the
importance of the interdependency of one country with all other countries. )s a
result of this globali!ation, the organi!ations became more international and this
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brought new challenges in the organi!ation.These concepts are tested by the
researcher by conducing pri"ary research. The approach which he,she #ollows is discussed
through the co"ing section o# this chapter.
Research Methodology
Introduction
The research is the organized in/uisition of a topic for discovering or devising the
theories! the facts! the application etc. There are many factors that increased the
need of diverse work force for more and better information. As the retail
organizations become national and international in their operations! they need more
information about the larger and more distant markets. As the income increase and
buyers are more selective! this necessitates the diverse work force to need know forbetter information on retail organizations... So the retail organizations have to
become more alert and so they need to collect all information on the diverse work
force. )anagers seek information about the customers! the competitors! diverse
work force which influence the market.
The research provides relevant and actionable information of the environment
through various methods such as observing! interacting and asking /uestions. A
research process constitutes se/uence of activities which will help the retail
organization
for taking better decisions. #t can be undertaken for identifying the importance of
diverse work force in the present scenario! defining the problem or the purpose of
the study. Then a theoretical frame work and analytical models are formulated to
develop an approach to the effective management of diverse work force...
ollow up of the research design and the presentation of the report is necessary for
;ommunicating the results to the retail organizations. This part of the dissertation
e&plains the kind of research which is conducted to achieve the research ob,ectives.
An overview of the research design comprising primary and secondary data!
methods of data collection adopted and its analysis! different sampling techni/ues
which are selected for this research work. @ustifications for the design and data
collection methods selected for the purpose of this research work are also given.
Research philosophy
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As retail the business e&pands globally! retail organizations are becoming more and
more competitive in nature for trying to increase their chances in the market. As a
part of this strategy they are recruiting diverse work force for enhancing their
services and for giving e&cellent services for their customers having diverse
backgrounds. >ere this research concentrates on the retail organization Tesco
because it is increasing its global presence by becoming more competitive in the
market. The diversity has different origins and has different policies in different
countries. So it urges the need for managing the diverse work force in the retail
organisations effectively by considering these diversities.
This research is intended to research and find out some real facts about the diverse
work force in retail industries. The topic of the research is Gthe importance of diverse
workforce in retail industry! a case study on TescoH. The human resources are very
essential for the retail organization because they are doing all the important functions
of the organisations. As a retail industry is considered! there is diverse work force
from different places. So it is the duty of the management to handle and manage this
diverse workforce effectively. As a valuable and important resource! diverse work
force must be given important care because all the functions of the retail
organisations are taking place with the help of this diverse work force.
This research focused on the importance of diverse work force in retail industry.
There some issues related with communication and the languages! the advantages
and disadvantages of diverse work force! challenges and problems raised because
of diverse work forces are also analyzed. As the case study methods and case
analysis are accepted research strategies of data collection! it is also considered.
According to Iin ('==*!
GThe case analysis or case study research is an empirical en/uiry that investigates a
;ontemporary phenomenon within its real life conte&t when the boundaries between
4henomenon and conte&t are not clearly evident! and in which multiple sources of
evidence are used.H
>ere as the research on the importance of diverse work force in retail industry
Tesco! the researcher can use e&ploratory and e&planatory research! case study
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analysis ! /ualitative and /uantitative method! etc for carrying out this research
because the
And previous problem is less supported by theoretical background researches. So
the researcher chose this methodology for this research.
Research purpose
As retail organisations became more international it creates different issues and
challenges for the organization and so they need to manage the diverse work force
effectively. The positive and better working environment increases the productivity
of diverse work force thereby it increases the profit of the organization. The presence
of diverse work force is an asset as it contains the very talented people! the broader
services! the innovations etc. :ut the problems like communication issues!
absenteeism! conflicts! turnover etc have to manage effectively for attaining the
organizational goals. 4urpose of this research is to in/uire a systematic study to
know more about the effective management of diverse work force in a retail industry
by giving special consideration to Tesco in 1. So the purpose of this research is to
analyze and evaluate the literature research! by giving importance of the diverse
work force and its effective management in retail industry
"rocedures of the research and its design.
or conducting this research one can collect data using different methods and
procedures. The researcher can use the primary as well as the secondary data.
or this research the researcher can use the following3
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4reparation C +ead the literature about the topic! its importance and also
learns about the organisation from various secondary data.
;ollect the opinion of diverse work force using /uestionnaire and analyze the
data using the collected information.
;onduct an interview with the manager to get more information about the
diverse work force.
Thus the researcher can collect data from the available sources and then conduct
the primary research with the manager to know the issues in relation with the
management of diverse work force. The collected data! can be evaluated and then
recorded for future reference and make use for further research.
"rimary Data #ollection
This type of data can be collected from the direct sources like interview with the
manager! collect information from diverse work force using the /uestionnaire etc.
$econdary Data#ollection
This type of data can collected from the e&isting sources such as books! websites!
articles! ,ournals! companyere case study analysis can be used as an effective tool for carrying the research
and can collect information from the review of literature and from the primary and
secondary sources. Then visit some Tesco units and try to collect information from
there. The researcher can distribute /uestionnaire among the employees and collect
their opinion and suggestions. After that arrange the meeting with the managers and
conduct interview with them for collecting more information about the related
problems and issues.
>ere the researcher uses both the /ualitative and /uantitative methods for the
research. The /ualitative method used is the interview with the >+ managers of
Tesco! Eondon! and the /uantitative method used is the collection of data from
employees of Tesco using the /uestionnaire. rom the collected data and
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information one can put forward the findings and can make recommendations and
suggestions for further research.
Data collection methods
The data can be collected using the primary as well as the secondary research. The
primary data collection is called the field research and the secondary research is
called the desk research
"rimary research
The primary data is the first hand information on the topic. #t is using for getting the
correct information on the research. #t is the data collected in first time and not found
in previous research. or this the researcher can use the methods like interview with
the >+ managers! the /uestionnaire techni/ues! observation etc.
%igure &.'.()$ource of the"rimary data *$ource) +hauri et al, (--/
0uestionnaire
>ere the researcher can use /uestionnaire techni/ue for collecting information on
the importance and the effective management of diverse work force in Tesco. #n this
techni/ue! the data is collecting using the /uestions and the response of the diverse
work force can be observed and collected. Duestions are prepared to encourage the
respondents and tried to reduce the errors. Duestionnaire is a formalized set of
/uestions for obtaining information from respondents.H()alhotra! 2002. As per the
view of )alhotra! the /uestionnaires have 9 specific ob,ectives and they can be
given as follows.
'. The research must make the set of the specific /uestions in which the
respondents can able and willing to an answer. ()alhotra! 2002.
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2. The /uestionnaire must minimize the demand on the respondents! and must
encourage them to participate in the procedure devoid of any bias in the
response. ()alhotra! 2002.
9. The /uestionnaire must reduce responsive errors. ()alhotra! 2002.
The researcher can use structured or the non structured /uestionnaires. The
structured /uestions the /uestions must be in an arranged order. These can be
disguised! that is the purpose of survey is hidden to respondents or it can be non
disguised where the purpose of the research is revealed to them. #n nonC
structured /uestionnaires! /uestions are non structured that is not in the arranged
form and the researcher can ask as per the situation of the research.
Interview
The interview can be done using the pre arranged /uestions so that it saves the
time. All the related information can be collected using the pre planed /uestions
and can be noted down. So that it helps the interviewer to collect the relevant and
right information on the related topic.
$econdary research
#n this the data can be collected using the secondary e&isting sources. So the
researcher must be alert that the data collected must be relevant to the present
situation. #t is the data collecting for finding more information for an additional
purpose. So it needed the vigilant analysis for getting the relevant information
from a collection of e&isting data. The secondary data can be evaluated using
different criteria. They can be given as follows.
;heck the data if it is relevant and useful for the related research.
;heck if the data can apply at the specified time.
;heck the level of errors and the accuracy of data.
;heck the reality of bias.
;heck the methodologies! collected data! the rate of the response! its
analysis! size of sample! techni/ues on the sampling! design of the
/uestionnaires etc.
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;heck the ob,ective of the data collection.
;heck the nature! the definitions! the measures! the relationships etc of the
data.
The secondary data also can collect using outside sources or retail organizationitself. The retail organisations internal sources contain the annual report! the
sales report etc. The e&ternal sources contain the te&t books! the ,ournals! the
newspapers! the professional body! internet sources etc.
Internal sources
The internal sources are the retail organizationere for Tesco! the researcher can use the annual report! the website etc forcollecting the data.
E1ternal sources
The e&ternal sources are the te&t books! the publications! the ,ournal articles etc. or
the te&t books and publications the researcher can use the university libraries and
other local libraries.
The 2ournal articles C There are many ,ournals available for the research.
They are the chartered management institute ;)#! the digital library etc. They
gave the information on the issues of diverse work force! but many of them
didn
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more ideas! principles etc. The descriptive method it promotes more e&aminations
than e&ploratory method. Analytical method also e&amines further more to know
about the real reason.
The preductive method tries to generalize the analysis based on the some general
relations. The /uantitative method analyzes the data using the /uantifiable tools
such as graphs! charts! tables! /uestionnaire etc. The /ualitative method analyzes
the data based on the events! non numerical data like the interview etc. Applies
research also find out the real cause of the problems and for solving it gives the
solution and it applies the cause effect method. The deductive and inductive
methods work based on the logic that it is applied.
or doing this researcher can use the case study method ! the e&plorative method as
it gives more ideas on the topic! the descriptive method! as it find out real reason for
that! the /ualitative method like interview! the /uantitative method like the
/uestionnaire! tables! charts! graphs etc. All these methods help for the knowledge
and further improvement of the topic.
The research diagram can draw to know more about the process. The following
diagrams give an idea about the research process.
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Research limitations.
or conducting this research the researcher faced some issues like the ethical! the
legal issues etc. As Tesco! is the leading retailer in 1! they are not willing to e&pose
the detailed information regarding their employees like their personal details as it is
related with the legal and confidential issues. Also the ethical issues like the time! it
was difficult to meet all the managers together because of their timings. Also due to
time constraints it was not able to meet the top level managers. As this research is
conducted within the fi&ed time frame it was not able to meet the top level
management because of the time constraints. Then come to the research materials!
most of the ,ournals do not provides detailed information about diverse work force at
workplace in retail organisations. #n the secondary research the researcher have to
assess the reliability and accuracy of the data as it was collected by somebody else.
These data have to rearrange properly and to make it useful for the current topic. #t
needs the critical assessment to recognize the bias. Another issue faced was on thegeneralization of the collected data. Then the researcher can