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ROLE OF TESCO HRM IN FOSTERING CULTURE OF INNOVATION

AND SUSTAINABILITY IN UK
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Abstract
Business organizations are compelled and keen to adopt innovative business practices
and efforts towards sustainability considering increasing awareness among consumer
community and need for sustainability. Organizations globally are emphasizing on
reforming their business practices particularly in HR field to maximize performance and
efficiency of their personnel and derive optimal human resource advantage. Considering
costs, time and efforts are the key drivers of performance and revenue Tesco UK, a
leading UK based retailer adopts innovative work culture and sustainability practices to
foster a culture of innovation and fulfillment of sustainability principles to ensure they
lead the retail industry. This study investigates the HRM’s role in fostering a culture of
innovation and sustainability at Tesco UK through a secondary data based qualitative
methodology backed by deductive thematic analysis method. The outcomes of this
study strongly suggested that Tesco UK has aptly addressed challenges faced by the
business in terms of changing business trends, addressing HR related issues, fulfilling
sustainability objectives with respect to people management, and lastly, optimizing
business processes by way of adopting state of the art AI backed technologies. The
business has succeeded in leveraging optimal HR advantage through improved human
resource practices that fostered employee engagement, ensured employee loyalty,
increased employee retention rates and delivered anticipated maximized business
performance.
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[Link] Topic Page No.

CHAPTER 1 - INTRODUCTION
1.1 Introduction 4
Background of study
1.2 Role of HRM in fostering culture of innovation & sustainability 5
1.3 Tesco UK- A case study 6
1.4 Justification of the Problem 8
1.5 Research questions 8
1.6 Research objectives 8
1.7 Research Rationale 9
1.8 Structure of Report 9
1.9 Chapter Summary 10
CHAPTER 2 -LITERATURE REVIEW
2.1 Introduction 11
2.2 HRM Innovation at Tesco 11
2.2.1 HRM innovation to impact learning $ & development at Tesco
2.2.2 HRM Innovation in Employee Process Management
2.3 Tesco’s SHRM 13
2.4 Tesco’s supremacy in Customer Service 14
2.5 Tesco’s employee performance evaluation/ reward system 16
2.6 Tesco HRM’s role in organizational leadership 17
2.7 Change adaptability at Tesco 18
2.8 Tesco HRM’s role in sustainability 19
2.9 Tesco HRM and Diversity at workforce 19
2.10 Employee Wellbeing 20
2.11 Tesco HRM’s role in skill development 21
2.12 Research gaps 21
2.13 Chapter Summary 21
CHAPTER 3 -RESEARCH METHODOLOGY
3.1 Introduction 23
3.2 Research Philosophy 23
3.3 Research Design 24
3.4 Research Strategies 25
3.5 Research Choices 26
3.6 Time Horizon 26
3.7 Data Collection Methods 27
3.8 Quantitative versus Qualitative data 27
3.9 Data Sampling 28
3.10 Research Ethics 28
3.11 Chapter Summary 29
CHAPTER 4 – DATA ANALYSIS, FINDINGS AND DISCUSSION
4.1 Introduction 30
4.2 Data Analysis 30
4.3 Data Validity 31
4.4 Research Findings 33
4.5 Evaluation of Outcomes and Discussion 34
4.6 Chapter Summary 36
CHAPTER 5 - CONCLUSIONS AND RECOMMENDATIONS
5.1 Summary of Research 37
5.2 Reflection of research questions 37
5.3 Recommendations 38
REFERENCES 40
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Chapter 1: Introduction
1. Introduction
1.1 Background of study
The role of Human Resource Management (HRM) in any organization is pivotal in
determining organizational behavior, performance and profitability. Organizational HRM
to a substantial degree determines the success and growth of every organization today
(Dorin et al, 2018). With consistent improvements in HR skills, practices and policies
organizations today operate in a much meaningful, conducive and socially friendly
manner. Businesses operating in retail sector in particular are obliged to implement
effective organizational policies and practices at every stage of its operations due to the
fact that retail sector businesses exert proximate and significant impacts on people and
society’s lives. Operating in an era of innovation modern organizations are compelled to
refine and upgrade their business practices so as to meet the objectives and goals of
Corporate Social Responsibility (CSR). The subject of sustainability is deeply
embedded into process innovativeness of businesses which cannot be under estimated
at all costs. This is due to the fact that increasing concerns towards the environment
among consumers’ organizations today are compelled to adopt effective measures
throughout their manufacturing and procurement processes to ensure their CSR
objectives and goals remain intact. Human resource management of an organization
plays a pivotal role in establishing the CSR objectives and goals for retail businesses
within UK. Leading retail enterprises like Tesco has been adopting innovative HRM
policies and practices to ensure conducive work culture and sustainability of the
business. Tesco, a retail giant headquartered in UK has global presence and operations
in many countries offering general merchandise ranging from books and electronics to
fruits and pastas (Tesco Operations Management: Report, 2023). Operating amid a
highly competitive environment within UK Tesco requires to adapt a highly flexible yet
effective work culture that ensures innovativeness and fulfills sustainability objectives
and goals. In order to achieve required performance and productivity standards the
company embraces highly adaptable HRM policies and practices aimed at addressing
the challenges of economy, society and the environment (Tesco CSR, 2003). Tesco has
proven to be an epitome when it comes to harnessing optimal HR advantage for
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stakeholder and community welfare achieved by maximizing profitability and reducing

any negative impacts on society. The HR policies adopted by the business are primarily
aimed to generate a desirable positive impact on every critical process of the business
to ensure optimal CSR benefits are leveraged by the organization.
1.2 Role of HRM in Fostering Culture of Innovation and Sustainability
Organizational HRM plays a key role in determining the nature and quality of work
culture. It is thus critical that organizational HRM adopts effective and nurturing policies
and HR practices so as to ensure a work culture of innovativeness and sustainability at
every level of organizational functioning is established. Modern organizations have
embraced efficient utilization of its human resource and adaptation to flexible work
environments operating amid a highly competitive and volatile business environments
(Nielsen, 2006). Various studies have been carried out by researchers on the subject of
role of organizational HRM in fostering organization’s cultural innovation and
sustainability. It is found that people employed by organizations are the key and core
asset of the organization due to the fact that organizational citizens determine its
competitiveness, performance and success. Thus, embracing highly adaptable HRM
practices and policies that empower people through skill development, knowledge
imparting process, and adoption of advanced technologies in business is paramount
towards achieving cultural innovation and sustainability (Maier, 2013). It is found that
employee issues are an integral component of organizational innovation process which
therefore emphasizes on developing employee skills, imparting required knowledge and
fostering innovative work culture organization-wide. This calls for flexible yet effective
HRM policies and practices aimed at fostering cultural innovation across organizational
processes and attaining sustainability objectives.
Several studies strongly advocate the HRM’s need for right decision making which
primarily involves fundamental moral and ethical principles, reflect socially
acknowledged value systems and embracing enriching philosophies that empower
stakeholders and organization on the path of success. The process of organizational
cultural innovation and sustainability can be successful only by way of embracing
enriching ethical, moral and philosophical principles which includes mutual respect,
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procedural transparency and fairness, accountability, responsibility, honest competition,

impartiality, respect for law and order, and loyalty (Dorin et al, 2018).
1.3 Tesco UK- A Case Study
The UK retail sector is booming with 11% contribution in nation’s economy (Rhodes,
2015). However, economic recessions, epidemics and political instabilities act as
primary determinants of consumer purchase power which is apparent from depleting
retail sales across UK retail sector lately. Studies suggested that stiff competition
among Sainsbury’s, M&M and Asda compels Tesco to bring out the best of products
and serviceability. Thus, from the management and marketing perspectives the role of
HRM is crucial in shaping organizational behavior in a manner that highlights its
positivity and inevitability to its stakeholders (Ghrmay, 2015).

Founded in 1919 by Jack Cohen in London Tesco today as evolved as an international

business giant in retail sector. Tesco is the largest and top most UK based retailer
having business operations internationally including countries of Thailand, Malaysia and
Hungary. The business is a leading enterprise dealing in general merchandise and
groceries. In and out of UK (Munusamy & Wong, 2008). The business has come a long
way in diversifying its products and internationalization of its operations globally. The
company had a wide range of products to offer its customers which includes electronics,
furniture, books, internet services, clothing, gasoline, toys, financial services, and
others. The Company today leads retail market in UK and stands among the top
performing international businesses in the international platform. However, despite of
undeniable success and consistent growth in the sector Tesco has been a victim of
several controversies such as accounting scandal, horsemeat scandal, and depleting
quality of products and services (Bin Rosnizam et al., 2020). As a consequence the
business has encountered domestic and international criticism, stakeholder
dissatisfaction and loss of reputation in UK and overseas. This calls for stringent
immediate measures to be adopted by the business to ensure company’s brand
reputation, goodwill and productivity remains intact. In order to accomplish high quality
standards in products, serviceability, and organizational performance there is
substantial need for the business to reform its organizational work culture and ensure
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sustainability objectives are met essential for winning stakeholder confidence in

business and attain quality excellence internationally. Considering the company’s brand
reputation and consistent growth adoption of appropriate and effective HRM policies
and practices should certainly aid the business in fostering cultural innovation and
sustainability particularly operating in the UK market.

Tesco UK stores are the core operations of the businesses which account to 70 percent
of Tesco’s group sales (Tesco, 2014). The business has over 3500 stores across UK
and employs around 310,000 employees across UK. The employees of Tesco are
placed in five distinct and varying retail stores namely, Express, Superstore, Tesco
Extra, Metro, and One Stop. Additionally, Tesco has other diverse store formats namely,
Dobbies, Homeplus, and virtual stores. According to Tesco’s official report there are 482
superstores, 195 metro stores, 1672 express stores, 722 One Stop stores, 247 Extra
stores run by Tesco across UK. This makes Tesco one of the largest and leading retail
brands within UK having presence in every town across the country (Tesco, 2014).
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Figure 1. Showing Tesco’s Retail Outlet in UK.

1.4 Justification for the Problem

Consistent challenges faced by the business due to external factors such as epidemics,
inflation, sales depletion, economic recessions, employee attrition, and increased
market competition makes it inevitable that Tesco reforms and refines its HRM policies
critical for overcoming competitor pressure and attain sustainable competitive
advantage in the UK retail industry. It has been found that despite of adopting a
competitive and flexible work culture Tesco still encounters several issues that needs to
be aptly addressed to ensure sustainable success and growth in the industry. Thus,
examination of Tesco’s current HRM practices and strategies is indispensable for its
sustenance as a leading retailer in UK.

1.5 Research Question

The study shall address the following research questions –
1) Does Tesco’s organizational HRM has a key role in fostering culture of innovation and
sustainability?
2) Has Tesco adopted HRM reforms to ensure improved business performance and sales
lately?
3) Is Tesco ready to upgrade HRM practices and strategies considering challenges in UK
retail market?
4) Has Tesco been successful in aptly addressing the issues of sustainability over the
years?

1.6 Research Objectives

Following are the research objectives the study shall address-
- Explore diverse secondary sources of information on the research theme
- Investigate Tesco as a case study organization and examine if the business has
fostered culture of innovation and sustainability
- To conduct a comprehensive literature review using secondary sources
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- To apply appropriate research methods and tools to investigate the theme

- To examine secondary data applying appropriate qualitative methods
- To obtain appropriate inferences from the study using suitable data analysis tools
- To conduct a systematic discussion and analysis for drawing appropriate conclusion
and provide suitable recommendations

1.7 Research Rationale

Organizations across the world are keen to foster culture innovation and sustainability
principles and practices as an obligatory protocol for their welfare and sustenance.
Businesses operating in diverse industries are compelled to adhere to sustainability and
culture innovation due to the need for improved business and work environment that
ensures the need and requirements of societal stakeholders are met by the
organizations. Various researches are conducted on the subject of sustainability
advocating better business practices for modern organizations. Tesco UK has been
aptly addressing challenges in regards to culture of innovation and sustainability by way
of adopting innovative HRM practices and policies that have immensely aided the
business to flourish and sustain operating amid a highly competitive business
environment. Thus, from the perspectives of HRM it is crucial that a systematic
investigation on the role of organizational HRM in fostering culture of innovation and
sustainability study is conducted so as to infer the impact Tesco, the giant retailer exerts
on people and society.

1.8 Structure of Report

This dissertation consists of five chapters and following is a detailed interpretation of

each of the chapter involved in this study.

Chapter 1) it provides introduction of the research topic. It consists of research

background, significance, study rationale, aims and objectives, and research questions.

Chapter 2) this chapter provides an in depth review of research literature derived from
various secondary sources of information.
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Chapter 3) this chapter provides elaboration on varied research methodologies adopted

in this study. It will mainly discuss and justify research philosophy, approach, strategy,
data gathering and sampling methods, research ethical considerations, and other vital
research procedural elements.

Chapter 4) this chapter will discuss and analyze the data gathered for the study from
diverse sources of information.

Chapter 5) this is the final chapter of conclusion in which summary of the inferences
drawn from data findings will be provided. Reflections on research inquiry, research
limitations, and appropriate recommendations will also be provided.

1.9 Summary

This chapter provides summary of Tesco UK business by elaborating background of

Tesco, nature of industry it operates in, its operations in UK, and business network
across UK. The chapter elaborates importance of HRM’s role in fostering culture of
innovation and sustainability, research rationale, research aims/ objectives and
justification for research, along with structure of report.
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Chapter 2: Literature Review

2.1 Introduction

This is the second chapter of report comprising of diverse secondary sources of study
relevant information derived from various sources namely, peer reviewed journals,
books, authoritative and credible reports and publications. As Tesco is a retail giant in
the UK a plethora of research literature is available in the form of secondary data. This
chapter will gather study relevant information to investigate how Tesco’s HRM has been
contributing towards culture of innovation and sustainability thereby fulfilling societal and
organizational objectives and needs. Varied aspects that shed light on Tesco’s culture
of innovation and initiatives towards sustainability will be reviewed in the chapter.

2.2 HRM Innovation at Tesco

2.2.1 HRM Innovation to Impart Learning and Development at Tesco

Various studies have been conducted on HRM practices and strategies to examine its
impacts on organizational performances and sustainability. The catastrophic
implications generated by the COVID pandemic severely jeopardized every aspect of
the business world thereby causing irreparable and irreversible damage to one and
every organization. A study conducted by Fenech et al (2019) showed Tesco’s
innovative work culture environment operating amid COVID. According to the author,
the remote learning and development system adopted by the business due to COVID
inevitability and necessity fostered a culture of consistent innovation by extensive use
and applications of advanced communication technologies and learning environments.
In order to aptly and effectively address the COVID challenges Tesco’s HRM focusing
on performance management functions aimed to attain a matchless competitive
advantage for the business. The performance management programs designed during
COVID are primarily meant to foster work culture innovation, optimize collaboration
among employees, ensure equality and fairness in work practices, and generate a
maximal performance impact on the business. This is evident from the Learning and
Development (LD) functions of the HRM at Tesco which aims to foster a matchless
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culture of innovation at the company. According to Okolie and Udom (2019) Tesco has
mastered embracing innovative technologies and training systems at the organization
and have been successful in imparting knowledge and skills to its workforce during and
post COVID era which has immensely aided in fostering a culture of innovation at
workplace. According to Okolie and Udom (2019) worker learning and training programs
are inevitable and indispensable for organization’s upgrading of the workforce and
matching pace with rivals. Studies revealed that consistent updating of learning and skill
development is utmost necessary from employee and organization’s performance
perspectives. According to a study by Aiello et al (2020) provision of incentives in
employee learning and training programs makes it highly effective and yields increased
returns on training costs overtime. Studies further suggested that investing in employee
learning and Development (LD) programs has always worked wonders for the
employees and organizations as employees are equipped with additional skill sets that
makes them capable to handle complex tasks at work. Provision of incentives
demonstrates the cultural innovation at Tesco’s workplace which keeps employees
engaged and encouraged throughout the course of training programs. Further studies
aimed at examining Tesco’s work culture innovativeness suggested that workers
engaged and promoted in learning and skill development programs are more likely to
stick to the business than otherwise.

According to studies conducted by Yusliza et al (2019) Tesco’s learning and

development programs are highly innovative as it fosters company’s culture innovation
by way of fostering and upgrading employee inherent capabilities and talents. The
author suggested that diverse features including quick learning, modifying, team
working, collaboration, trouble shooting, and launching are utmost essential
components of Tesco’s learning and development programs. The author further
elaborated that Tesco’s learning and development immensely aids in creating an
innovative learning and work environment.
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2.2.2 HRM Innovation in Employee Process Management

A study conducted by Falletta and Combs (2020) revealed that Tesco’s unique HRM
features of function assessment allows the business to precisely evaluate how one
HRM function weighs against the other thereby allowing HRM to prioritize and
determine the importance each of the function priority wise. As suggested by the author,
this process may involve several complex stages or levels such as availability of
workers at a specified time, location of the workplace, number of hours to work, nature
and role of work, state of economy, etc. According to a study by Longoni et al. (2018)
Tesco in order to optimize its innovative work culture intends to recruit more employees
to its existing talent pool. As suggested by the author, the company followed
compensation and benefit strategy of compensation management function which played
a key role in assisting Tesco in fulfilling its strategic goals and objectives. According to
the study the role of compensation and benefit function of HRM management is to
ensure employees are fairly paid for their efforts and performances. According to Stone
et al, (2020), the compensation and benefit functions of the HRM also covers the
incentives and recognition for the contribution of employees at Tesco. It is inferred that
the compensation function of Tesco’s HRM aptly considers the overall pay structures of
workers at Tesco ranging from wages to recognition and rewards employees are
entitled to receive. Studies revealed that Tesco strongly emphasizes on consistent
monitoring of employee pay structure which aids in achieving Tesco’s strategic
objectives and satisfaction.

2.3 Tesco’s Strategic Human Resource Management

Tesco realizing the importance of implementation of Strategic Human Resource Management in

attaining its organizational objectives and goals adopted an innovative work cultural
environment by way of enforcing flexible yet effective HR practices, policies and strategies
across organizational diverse processes and operations. The company according to the study
by Bouaziz and Hachicha (2018) emphasized on optimizing efficiency and productivity of
Tesco’s operations by aligning people, processes, operations and organizational values and
philosophies. According to the author, the business realized effective management of its human
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capital and their inherent capabilities in the form, of skills and knowledge as HRM’s top priority
which has immensely boosted company’s productivity and performance overtime. A study by Al-
Ayed (2019) suggested that SHRM is all about proactive thinking of organization’s needs and
requirement of the future in meeting future goals and objectives which mainly includes tailored
HR strategies and practices, recruitments, training and development of human resource,
planning and developing training and skills to attain expertise in specified areas of operations
and management, assessing performances, tailoring remunerations, developing appropriate
educational and development opportunities for prospective employees in times to come.
According to the author, the strategic HR practices are referred to as “high performance work
practices” which are essential for Tesco to attain higher performance levels, improved quality
levels and increased business standards and which can be attained only by way of maximized
commitments of people, building a highly collaborative and friendly work environment backed by
mutual trust and commitment.

Study conducted by Fahim (2018) showed that Tesco’s SHRM has successfully identified the
drivers of organizational success by way of connecting firm’s business plan with HR strategies.
The author further suggested that Tesco’s ultimate goal is recruitment of high quality talents,
development of organizational talents by training and knowledge, and lastly, retention of talents
by providing appropriate growth and development opportunities in the organization. A study
conducted by Armstrong and Brown, (2019) suggested that the upgrades and updates in
Tesco’s SHRM policies and practices that lay special emphasis on attracting new talents,
developing existing talents, and retaining capable personal has played a key role in company’s
success and growth apparent form consistent increase in Tesco’s growth and profitability.
Upgrading SHRM practices has thus played a significant role in fostering Tesco’s culture of
innovation thereby ensuring diverse business benefits to the business.

2.4 Tesco’s Supremacy in Customer Service

According to Paauwe and Boon (2018) Tesco’s business strategy and human resource
strategy are intertwined which has a significant role to play in business success and growth. The
business offers substantial emphasis on employee development and welfare by way of investing
heavily in training and skill development programs. The business is known to periodically review
its personnel strategy and proactively make appropriate adjustments as required by the
business. The company’s senior HRM always monitors on employee’s needs, wants and
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preferences form the work culture which is crucial for keeping the employees focused, engaged
and motivated. According to Choi et al (2018) company’s upper HRM conduct annual surveys to
gain insights on employee’s emerging needs and demands form work culture and, as suggested
by the author, every year Tesco’s employee express similar needs and wants in the form of a
highly cooperative manager, an ideal hierarchy suiting their performances, growth opportunities,
and recognition. As suggested by Choi et al, (2018) the company has always succeeded in
maintaining a consistent pace of culture of innovation at workplace evident form employee
satisfaction, increased retention rates and consistent growth in business. The key innovative
factor that drives employees at Tesco is the company’s emphasis on building an HR strategy
that lays more focus on maximizing employee performances essential for meeting performance
and growth objectives at employee and organizational levels. According to Sareen (2018)
consistent endeavors by Tesco in developing and maintaining its personnel resulted in service
excellence and increased business growth for the business despite of economic down turn.
Tesco’s innovative SHRM strategies targets on building the relationships between customers
and employees that not only fostered lasting relationships but rewarded the business with
multiple benefits from consumers as well as employees. According to the author, Tesco’s
innovative work culture provided diverse business benefits in the form of consumer loyalty,
consumer retention, and increased purchase behavior. While on the other hand, Tesco’s HR
strategies immensely aided the business in fostering a highly productivities and performance
oriented work culture that ensured improved retention rates of employees, optimized
performances at individual and group levels, and increased organizational productivity (Tesco's
HR Practices & Leadership Theories in Action, 2024). According to Sareen (2018) Tesco’s has
excelled in providing matchless customer services to its local and international consumers
evident form its increasing growth and profitability despite of economic down turns. This is an
evidence of company’s consistently fostering cultural innovation at workplace and sustainable
growth.

According to the study by Armstrong and Brown (2019) consistent innovation in HR practices
and policies has always worked wonders for Tesco in its business evolution. The company by
way of enforce effective and flexible HR practices an policies has always delivered maximal
positive impact on employees reflected through their matchless contribution and commitment in
organizational growth and success. The author suggested that the business has aptly learnt to
timely understand employee’s inherent needs and wants at workplace which is clearly reflected
through its innovative HR policies and practices that foster a culture of innovation at workplaces.
Investing in talents begins right from recruiting the right talent, nurturing talents, imparting skills
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and learnings to employees and taking every initiative to ensure performers at workplaces are
always satisfied, remain loyal to the business and play a key role in its success has been Tesco
HRM’s top agenda. Thus, it can be said that Tesco’s HRM has a significant role to play in
fostering culture of innovation at its workplaces.

2.5 Tesco’s Employee Performance Evaluation/ Reward System

According to a recently published report on Tesco’s HRM performance monitoring and

reward processes the company ensures every individual is consistently monitored for
their performances periodically in terms of quality of service, performance and
productivity working within their assigned roles and responsibilities (Human Resource
Management Practices of Tesco PLC, 2022). The performance of employees is
measures based on their contribution against company’s expectations. Performance
appraisal is yet another way of evaluating employee performances at Tesco.
Performance appraisal, according to the report, is the process of valuing the worth of an
employee in the organization. The process may involve job behavior based
performance appraisals, performance oriented appraisal systems, use of personality
tests, appraisal forms, and rating scales. This process is rigorous and involves carrying
out an appraisal interview by the HR, action acknowledgement, fulfilling an appraisal
form, completion of an job interview plan, promotion review etc. A study by Jung and
Sosik (2006) suggested that Tesco adopts benchmarking strategy to evaluate employee
performances which mainly involves comparison of performances to predefined,
specified, acceptable standards essential for enabling businesses secure consistent
improvements. In context to the reward system, an in depth study involving quantitative
primary data using a questionnaire based survey method which included 44 employees
of Tesco UK and another study involving five of Tesco UK managers was conducted.
The study mainly employed SPSS software and used frequency, correlation and
regression analysis to analyze gathered data. The interpretations of the study strongly
suggested that there was a strong correlation between employee performances and
company’s reward systems with one influencing the other. Interviews conducted with
Tesco UK managers revealed that both the intrinsic and extrinsic rewards played an
extremely important role in impacting employee performances at Tesco UK workplaces
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(A Study of the Impact of Reward Systems on Employee Performance: A Case study of

Tesco PLC, UK, 2016).

2.6 Tesco HRM’s Role in Organizational Leadership

Various studies conducted by different researchers’ advocates Tesco’s competencies in

ensuring a highly adaptable work culture operating amid a highly competitive business
environment without comprising on performance and service quality of workforce. It is
inferable that organizational HRM has a pivotal role in shaping and developing
organizational leaders that suit organizational needs and objectives. At Tesco
organizational HRM has aptly identified the appropriate leadership styles that suit
organizational work culture, appropriate for attaining organizational objectives and goals
and delivers a sustainable competitive advantage for the business in long term. A study
by Alrowwad and Abualoush (2020) suggested that among the diverse leadership theories
available Tesco adopts transformational and transactional leadership styles due to the unique
and lasting advantages derivable form these leadership styles. According to the author, Tesco’s
work culture requires leaders that can build and maintain lasting cordial bonds between
organizational stakeholders particularly employees. This is because transformational leaders
are known for building strong bonds with their peers, followers and teams. These leaders are
peculiar for their ability to motivate and inspire employees and learners to new heights of
performances and achievements thus immensely aiding organizations achieve the set
organizational objectives and goals. According to Azizaha et al, (2020) transformational leaders
are able to unite their teams for achieving a common objectives due to their peculiar ability to
build bonds between members and groups. The author furthers that transformational leaders
have the capacity to bring changes within the organization in a swift manner. Adoption of
transformational leadership thus guarantees optimal utilization of skills, knowledge and
learnings imparted by Tesco by way of uniting stakeholders, directing their inherent potentials to
meet common organizational goals and objectives and lastly, achieve maximal performances for
the business.

A study by Jacobson (2022) suggested that transformational leadership is highly appreciated for
its ability to collaborate via open communication channels which is deemed essential for
fostering culture of innovation and boost creativity. The author further suggested that
transformational leadership has been highly effective in eliminating mutual conflicts among
peers as they emphasize on working together, mutual collaboration, team working, effective and
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open communication and focus on achievement of common objectives and goals. Thus, Tesco’s
HRM plays a key role in identifying and developing leaders among the best of the workforce and
building value and reputation of the organization. According to Crews et al (2019)
transformational leaders touch their peers, followers and learners through their highly
collaborative, cooperative and motivating attitudes and behaviors which immensely inspires
their followers and delivers a cumulative positive impact on team and organization. Tesco has a
diversified work environment and therefore addressing challenges in the form of work practices,
procedures, roles and responsibilities, and operations and management related challenges can
be easily addressed by adopting an open, free and friendly communication network through the
organization (Azizaha et al, 2020). The author further suggested that at Tesco culture of
innovation to a substantial degree can be attributed to the transformational leadership style that
fosters and nurtures its work culture at every stage of organizational evolution.

2.7 Change Adaptability at Tesco

Organizations faced tremendous challenges and barriers operating amid the pandemic
and Tesco is not an exception. Considering the inevitability of the business for the
society as a retailer Tesco had to incorporate innovation in its work culture to ensure
pandemic challenges are efficiently overcome. According to the study of Harris (2019)
habit of adaptability introduced by Tesco’s HRM which lays emphasis on adapting to
changing work conditions proved crucial in ensuring swift business operations during
the pandemic. The initiatives adopted towards organizational change management to
address pandemic challenges were efficiently handled by organizational HRM. Under
this strategy, Tesco required an additional of fifty thousand employees to cater
increasing need for workers at its UK based stores. The Company’s HRM had to face
tough challenges throughout the recruitment and selection process however due to the
inevitability and indispensability of additional workers HRM also had to consider remote
working strategies under the new plan (Fry, 2021). This implies new policies and
practices for employees concerning remote working environments. According to Fry
(2021), the culture of innovation consisted of several phases namely, inclusion of AI
aimed to efficiently handle online processes, inclusion of hybrid workforce aimed to
adopt post pandemic work culture, training and development aimed to impart skills and
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learning as required for new virtual work culture, policy introduction aimed at imparting
knowledge on newly enforced work place policies, and doubt clearing sessions aimed to
resolve employee doubts concerning any aspects of the newly developed work culture
(A Study of the Impact of Reward Systems on Employee Performance: A Case study of
Tesco PLC, UK, 2016).

2.8 Tesco HRM’s Role in Sustainability

In order to incorporate sustainability principles Tesco’s HRM has appropriately

formulated and implemented effective HRM policies that care for its employee wellbeing
and welfare. According to Tesco’s report (2021), the business provides diverse
employee benefits and privileges to its deserving employees under the family leave
policy under which employees that are willing to have children are offered maternity
leave. Prior offering a paid maternity leave the employees at Tesco are supposed to
inform their managers about their pregnancy which is followed by a risk assessment to
ensure the employee is assigned an adjusted role and responsibility throughout their
pregnancy to ensure the employee is free from any occupational hazards during
pregnancy. As per the company’s HRM policy, Tesco offers a 26 weeks paid leave to
employees that seek maternity leave post 52 initial weeks of pregnancy. Paid paternity
leave is offered by Tesco for 2 weeks after 26 weeks of service and after 52 weeks a full
paid leave for 4 weeks (Family leave policy, 2021).

2.9 Tesco HRM and Diversity at Workplace

According to Tesco report (2024) the business adopts sustainability at every possible
phase and area of its sustenance. At Tesco working is fun and full of enthusiasm as the
business strongly values employee diversity by promoting a multicultural work
environment. Tesco recruits, develops and promotes talents from diverse cultural,
ethical and religious backgrounds of people working in the business. Equality, fairness
and impartiality is what drives Tesco towards attaining a global leadership in business in
terms of work culture, serviceability, and performance. Various educational programs
are run by Tesco to better understand challenges faced by diversified workforce at
 20

workplace and eliminate those barriers by way of fostering culture of innovation,

oneness and integrity. As an initiative towards sustainability Tesco foster female
leadership in critical roles and locations representative of gender equality. The business
aims to reach 35% of organizational leadership in the hands women 14% of which will
be from diverse ethnical backgrounds (Diversity and Inclusion at Tesco, 2024).

Figure showing Tesco’s diversified work culture.

2.10 Employee Wellbeing

At Tesco employees wellbeing and health are given top priority which is evident from
company’s HRM’s inclination to develop and foster a work culture that cares, nurtures
and fosters workforce and work culture. At Tesco, varied health programs are run by the
business such as free health checkups, employee assistance programs, online learning
and others to promote employee wellbeing. Programs like Loneliness, Monopause,
Gynae Health, and Grocery Aid Day are aimed to aid employees lead better and
healthier lives. The business is particularly keen to eliminate social taboos linked to of
mental health by taking initiatives aimed to improvise mental health and wellbeing of its
employees. Wellbeing Champions are assigned to personally attend and counsel the
needy employees that require mental health and support (Keeping focused on the
safety of our colleagues, 2024).
 21

2.11 Tesco HRM’s Role in Skill Development

At Tesco, HRM is keen to upskill and reskill its workforce considering current and
emerging competitiveness in the work environments. The HRM policies at Tesco are
aimed to hire and build careers of youngsters who aspire to grow with the industry. The
business offers variety of skill development and learning campaigns such as online
learning programs aimed to upskill and reskill existing employees and grow faster. Line
manager training program allows Tesco’s employees to get trained on managerial skills
and acquire knowledge of people and processes at workplace. Tesco offers apprentice
programs to promote learning for its employees by way of aiding its employees seek
education in diverse courses and degree programs offered by institutions within UK.
Tesco also offers graduate programs for fresher by allowing them to get hands on
experience of work at its stores. This opportunity has immensely helped fresher
graduates and interns to acquire real industry experience that supports their career and
future growth in the industry (Jobs and Skills at Tesco, 2024).

2.12 Research Gaps

The literature review chapter has aptly reviewed contemporary research literature using
diverse secondary sources elaborating varied HRM functions and impacts on building
culture of innovation and sustainability. The information presented in this chapter aptly
addressed how HRM at Tesco has successfully adopted innovative practices, strategies
and policies appropriate for the changing business environment and culture thereby
deriving maximal HR benefit. The literature review has discussed diverse aspects of
Tesco’s HRM in covering HR recruitments, development and training programs for
employees, retention strategies, fostering employee careers, provision of growth
opportunities and privileges, evaluation strategies, employee diversity at Tesco aimed to
foster culture of oneness through innovation, change management and adaptability,
adoption of appropriate leadership style to address HR issues and work culture, and
lastly, how HRM played an important role in sustainability at workplace by enforcing
appropriate HR policies for employee wellbeing and welfare at Tesco UK. However,
despite the diverse aspects being covered there is lack of literature available as
 22

secondary that testifies the benefits derived by stakeholders or acts as a credible

evidence of Tesco’s endeavors towards sustainability that requires further research.

2.13 Summary

The literature review chapter has aptly covered key aspects of HRM’s role in fostering a
culture of innovation and sustainability at Tesco. In the section of report, diverse
aspects impacting Tesco UK retail businesses from a HRM perspective have been
discussed and reviewed. It is inferred that Tesco’s HRM has effectively managed its
workforce by way of innovating its work culture that adapts modern business
environments operating on global platforms. Various important elements that determine
the quality and performances of workforce at Tesco UK have been aptly addressed
using diverse credible secondary sources of information.
 23

Chapter 3: Research Methodology

3.1 Introduction
Research methodology primarily involves determining appropriate methods, tools,
techniques, and procedures for conducting research in a manner that aptly addresses
the research questions and fulfills research objectives and goals. Research
methodology allows researcher in carrying out the research in an systematic and
disciplined procedure consequently ensuring appropriate direction and valid outcomes
are generated by the study. A typical research methodology adopts the research union
design advocated by Saunders et al (2012) that aptly depicts various layers of the
research onion with each of the layer with multiple options allowing the researcher to
choose the most appropriate option available from diverse options of study. Thus a
research methodology justifies the direction, methods, procedures and tools adopted in
the study are appropriate and valid for the research. This chapter will discuss and
elaborate selection of appropriate research methodologies suitable for this study and
primarily include research philosophy, research approach, research techniques and
tools, research choices and strategies, research ethics and summary of the chapter.

3.2 Research Philosophy

Research philosophy is the outer most layer of the research onion and forms the basis
of research. Research philosophy allows researcher guide his research by applying
appropriate perspectives and paradigm to the study that eventually allows in formulation
of theories and principles of research thereby aiding researcher in generating
generalizable research outcomes. Research philosophy thus allows researcher to opt
for the most suitable research oriented philosophy that directs, guides and manages the
course of study eventually delivering valid and credible research outcomes of study.
According to Saunders et al (2012) research paradigm is systematically classified into
four types namely, positivism, interpretivism, pragmatisms, and criticism philosophies.
Among the four research philosophies available in research methodology this study
adopts positivism philosophy for examine the facts and realities concerning the research
interest applying quantitative as well as qualitative stance. As Tesco UK, the leading
retailer in the country has been consistently upgrading and updating its HR’s role in
improvising the work culture by way of fostering culture of innovation and adopting
sustainability principles the phenomenon can thus be investigated using appropriate
sources of information available in quantitative/ qualitative formats that eventually aids
in drawing valid and credible inferences of study. Application of positivism will further
 24

allow researcher in formulating appropriate theories on the basis of research outcomes

(Saunderset al., 2012).

According to a study Hasa (2011) positivism theory suggests that knowledge can be
verified by applying scientific methods of inquiry primarily involving experiments,
observations, and logically acceptable and verifiable evidences. Coined by Auguste
Comte in 19th century the term positivism, as suggested by Comte, is the philosophy of
science that expressed advances in socio-scientific environments and complimented
scientific inquiry and logical thinking. According to the author Hass (2011), positivism
primarily aims to explain, discover and predict socially linked phenomenon using a
scientific perspective. The author further elaborated that positivism requires evidences
of statistical, measurable, observable, and objective facts available in the form of
surveys, questionnaires, official stats, and research. Thus, positivist philosophy allows
researcher to gain information concerning research interest using appropriate means
and methods of research inquiry.

3.3 Research Design

Based on the interest of study two types of research approaches can be derived
namely, inductive approach and deductive approach. Deductive approach of study aims
 25

to investigate the research theme from a deductive reasoning approach starting from
general perspective and hypothesis and reaching to specific and logical conclusion. The
peculiarity of deductive reasoning method is that it tests hypothesis by way of deduction
which aids researcher in drawing appropriate and predictable inferences that support
logic and rationality and agreeable by facts of research. On the contrary to deductive
approach of study inductive approach uses a specific stance and moves towards a
general stance. In a typical inductive approach of study, diverse observations are made,
patterns linked to research interest are discerned, and generalizations are drawn
essential for drawing an explanation, justification and theory as suggested by (Bradford,
and Weisberger, 2023). As this study intends to investigate the role of Tesco’s HRM in
fostering culture of innovation and sustainability the researcher shall examine facts,
information, observations and studies relevant to the research theme by adopting an
inductive stance and deriving appropriate inferences of the case study. Thus, inductive
reasoning approach will immensely aid research in gathering appropriate inferences
from Tesco’s HRM’s contribution towards its work culture, business practices and its
contribution towards sustainability. Thus, an inductive reasoning method is most
suitable for fulfilling the objectives and goals of this research and address research
questions aptly.

3.4 Research Strategies

A research strategy is defined as a sequential and systematic procedure to carry out a
study and execute research plan since it provides a definitive direction and guidance to
the researcher consequently allowing the study to generate scientifically verifiable and
valid research outcomes. As suggested by Saunders et al (2012) a research strategy
can be classified into diverse types namely, case study method, ethnography, grounded
theory, experiments, survey, or archival research. The researcher needs to choose an
appropriate research strategy that can aptly address research questions and fulfill
research objectives. As this research primarily relates to investigation of HRM’s role on
culture of innovation and sustainability pertaining to Tesco enterprise, this study thus
deems case study method as the most appropriate for conducting research. Studies
indicate that case study strategy is applied to develop and gain an in depth and multi-
faceted learning about a complex phenomenon. The peculiarity of case study method is
that it it is very advantageous in providing explanation, description and exploration of a
phenomenon relevant to the research theme by (Alpi and Evans, 2019). A unique
benefit of applying case study strategy is that multiple data sources can be adopted for
examining research theme using qualitative methods which aids in gaining deeper
insights on the research question.
This is because case study method or strategy primarily involves investigating particular
‘case’ relevant to phenomenon and thus examination of research objectives and
interests relevant to Tesco Company justifies selection of case study method for this
 26

study. Therefore, considering the scope and limitations of this study the rationale of
choosing case study strategy is most appropriate and justified.

3.5 Research Choices

Research choices relates to the type of information required to aptly address research
questions and fulfill research objectives. Research choices are typically classified into
three main types, namely, qualitative method, quantitative methods and mixed method
of study. Qualitative research is one that aims to gather adequate and in depth
information about the research phenomenon which plays a crucial role in developing
theories and hypothesis. It is found that qualitative research methods are prevalently
used and popular in studies that require probing and involve sensitive information
relevant to the research phenomenon. As Tesco is an renowned and leading retailer in
the sector obtaining detailed information from diverse secondary sources of information
requires acquisition of sensitive information about the company. Secondly, examination
of Tesco’s HRM’s role requires probing about its practices, strategies and policies on
work culture and sustainability which makes adoption of qualitative methods most
appropriate for the research. On the contrary, quantitative method mainly relates to
measurements of facts and realities of research interest using quantifiable facts and
stats relevant to the phenomenon. This requires quantitative studies containing stats
and facts about research interest and theme. Whereas, a mixed study involves a blend
of qualitative and quantitative methods which can serve as a basis for theory
formulation and drawing appropriate inferences from study. This consequently aids in
deriving appropriate and valid outcomes of study from both the methods. As a plethora
of qualitative information is available as secondary data that can be readily examined
from research perspectives to aptly address research questions and meet research
objectives adoption of qualitative data thus justifies selection of research choice. The
rationale for selecting qualitative method of study is due to the fact that quantitative
studies that dictate objective instances of phenomenon can be aptly expressed in
subjective terms. This implies that qualitative studies can aptly measure the inferences
drawn by quantitative studies as study outcomes. Therefore, the rationale for selecting
qualitative method is justified.
3.6 Time Horizon
As suggested by Saunders et al (2012) as shown in the research onion time horizons
refers to the time taken to complete the study. Two types of time horizons are available
for research works namely, longitudinal time horizon and cross sectional time horizon.
This study adopts longitudinal time horizons due to the fact that longitudinal time
horizon involves repeated data collection over a prolonged period of time and thus
requires time, efforts and resources for study whereas on the contrary, cross sectional
time horizon requires considerably limited time frame being cost effective and
convenient. Considering the plethora of secondary information that required to be
 27

investigated from diverse research literature, adoption of longitudinal time horizon

justifies the selection and rationale.

3.7 Data Collection Methods

According to Bell and Brymen (2015) data is mainly divided into two types, namely
primary data and secondary data. Research conducted by Saunders et al (2012)
suggested that primary data or information is the firsthand data gathered directly from
the participants of study. Primary data requires active involvement of targeted
participants chosen for the study based on their skills, knowledge and experience on
area of research interest. Due to the characteristics features of being raw, firsthand
facts, and credibility of information primary data holds immense significance in research
field. Primary data has been of tremendous importance to the field of knowledge due to
the validity and authenticity of information gathered on specific areas of research
interest. On the other hand, secondary data is the information gathered and derived
from various secondary sources of information and available in the form of journals,
research reports, scientific literature, institutional publications, books, peer reviewed
articles and others (Sakeran and Bougle, 2016). According to the authors, published
primary data can be deemed as secondary data and holds significance for research
studies due to the validity and credibility of facts and information reflected in the studies.
The peculiarity of secondary data lies in its applications in diverse studies relevant to
the research theme as a conclusive evidence of facts and information relevant to study
due to its characteristic feature of holding cumulative and collective information about a
specific phenomenon from diverse data sources which is considered credible, reliable
and valid in research. As secondary data is derived from previously conducted primary
studies of different researchers, study relevant information can be readily accessed by
researcher for drawing inferences in existing study it therefore is deemed extremely
crucial for generating results on current research work. Research by Martin et al (2018)
concluded that increased accuracy and credibility can be achieved by gathering
secondary data from various credible, reliable and authentic sources of research field.
The inferences thus obtained as a consequence of interpreting diverse secondary data
from secondary studies strongly back research outcomes of existing study and open
new probabilities for further studies on the research theme.
3.8 Quantitative versus Qualitative Data
Data can be classified into two broad types, namely, quantitative data and qualitative
data. Quantitative data refers to research data that relates to quantification and/ or
measurements of facts relating to research phenomenon and expressed in the form of
numbers and stats. Quantitative studies primarily rely on primary data which are the
main source of quantitative information and expressible in stats and numbers providing
outcomes of study. It must be borne in mind that quantitative studies often require larger
population sample due to the fact that much information relevant to the study needs to
 28

be accumulated, classified, mathematically analyzed and interpreted so as to derive

meaningful inferences. On the contrary, qualitative data refers to information relevant to
subjective nature of people and things or phenomenon. Qualitative is deemed extremely
useful in deciphering opinions, ideas, perspectives, and experiences of people relevant
to phenomenon of study interest. As this research theme surrounds the role of HRM of
Tesco in fostering culture of innovation and sustainability, the research theme thus calls
for a qualitative analysis of the phenomenon involving feelings, experiences, views,
opinions and thoughts which can be studies using diverse secondary sources of
information such as journals, company reports, research publications, authoritative
websites and books. A study by Saunders et al (2012) showed that qualitative research
involves substantial human interactions which justifies the stance of this research. The
author further elaborates that human interactions can be analyzed subjectively in terms
of knowledge exchange, emotional exchange, experiences, views and ideas etc. Thus,
the rationale of adopting qualitative research justifies
3.9 Data Sampling
Data sampling relates to the process of data sampling of information sampling in
research. Understanding the scope, needs and interest of research this study adopts
purposeful sampling technique which is considered extremely useful in identifying and
selection of data rich samples corresponding to the research subject. A this study has
includes large volume of secondary data from diverse secondary data sources
application of purposeful sampling technique will certainly prove immensely useful in
identification of appropriate data sets relevant to research theme. Convenient sampling
technique, yet another effective data sampling technique could also be aptly used in this
research due to the fact that convenient sampling allows researcher to conveniently
collect information from diverse sources available on the online platform (Shaheen et al,
2019). Due to the nature of data employed in this study which is readily available and
accessible over the virtual platform at researcher’s convenience, convenient sampling
technique too is suitable for the research. The author further suggested that qualitative
studies relying on secondary information are much simpler, easily to decipher than
quantitative data. The author furthers that from the plethora of secondary information
gathered in study’s data rich samples appropriate data sets needs to be captured that
are meaningful, value oriented to research and fulfills research interest that eventually
enhance the validity and credibility of the study. Thus, from the perspectives of
obtaining most appropriate and meaningful information from a plethora of secondary
data purposeful and convenient sampling techniques are most appropriate hence the
rationale of selection is justified.
3.10 Research Ethics
This study adheres to all ethical considerations relative to the research which includes
informed consent, right to privacy, data confidentiality, no harm to participants. It must
be noted that as this research primarily involves secondary data informed consent and
harm to participants does not apply. Concerning rights to privacy and data
 29

confidentiality researcher, adhering to ethical principles of research shall credit every

sources used for developing this report by citing appropriate references of sources
including, names of authors, date of publications, name of the source/ journal, volume
and issue number, and link to the source if available will be provided.
3.11 Chapter Summary
This chapter has provided systematic elaboration on research methodology that will be
adopted in this study. The chapter has elaborated various key elements of research
involving research philosophy, approaches, choices, strategies, research design, time
horizon, data gathering methods and sampling, data types, and research ethics. The
chapter along with elaboration of every phase of research has aptly provide valid
justification and rationale for selecting appropriate methods, techniques and strategies.
 30

Chapter 4: Data Analysis, Findings and Discussion

4.1 Introduction
Data analysis form the most critical part in research field due to the complexities
involved in the process of analyzing acquired data and its inevitability and
indispensability of the process in obtaining research relevant and appropriate
interpretations. This chapter involves application of appropriate and relevant data
analysis methods on secondary data gathered for the study. As a plethora of secondary
information is collected for studying the research theme form diverse sources it thus
implies that the gathered data needs to analyzed using most appropriate and research
relevant data analysis methods essential for deriving credible and valid outcomes. The
chapter discusses analyses of secondary data to arrive at appropriate inferences
following by a detailed discussion of study.
4.2 Data Analysis
Tesco’s HRM role in fostering a culture of innovation and sustainability has been
commendable due to the improved work culture, increased productivity, and retention
rates at the Tesco UK outlets. It is crucial from research perspective that information
gathered from diverse secondary sources is examined by applying appropriate data
analysis methodologies to ensure credibility and validity of research outcomes. Among
the diverse data analysis methods and considering the scope, limitations and needs of
research this study adopts deductive thematic analysis method for analyzing plethora of
secondary information acquired for this study. The rationale for application of deductive
thematic analysis methods lies in its efficacy, convenience, precision and reliability in
appropriately extracting the most relevant and appropriate themes lacked within
secondary data in the form of rich data sets. Deductive thematic analysis has been
deemed highly effective in treating data that is characterized by diversity due to the fact
that this method allows researcher in identification of occurring and reoccurring
patterns, codes and themes from rich data sets thus enabling researcher to precisely
discover the interlinkages between patterns based on which appropriate codes and
themes will be generated obtaining accurate interpretations of study. The peculiarity of
deductive thematic analysis lies in its top down approach which moves form a broader
perspective to towards a narrower perspectives thereby allowing the researcher to
identify and deduce appropriate patterns and codes from rich data sets of secondary
data, establish their interlinkages to accurately interpret the research findings. Hence
deductive thematic analysis would be the key determinant in deriving appropriate study
inferences and add credibility, authenticity and reliability to research outcomes. As this
study relates to qualitative secondary data application of thematic analysis will allow
researcher in identify and deciphering occurring and reoccurring codes form vast
volume of secondary data that holds rich data sets in qualitative form. According to
 31

Crosley (2021) coding techniques adopted in thematic analysis method classfy patterns,
codes and themes into appropriate categories and sub-categories based on the nature,
characteristics, and relevancy of data to research interest and needs. Deductive
thematic analysis will eventually allow researcher in understanding interlinkages,
differences, interdependencies, and causes and impacts based on meaningful patterns
of codes and themes which hold immense value in qualitative research and aids
researcher in obtaining most accurate inferences of study.

4.3 Data Validity

Data validity holds immense importance in research field due to the fact that it
establishes and determines the authenticity and credibility of the study. Valid data
implies information gathered for research whether as primary data or secondary data is
derived from reliable and credible sources, is relevant to the study, and adequately
fulfills research needs and interest. In secondary data gathering methods, it is
imperative and inevitable that information acquired for study is reliable, captured form
credible sources, and relevant to the study. This study has employed highly reliable and
valid sources of data in the form of journals, peer reviewed articles, company’s reports,
and valid websites elaborating varied HRM practices and strategies at Tesco UK. It
must be borne in mind that any discrepancies in data acquisition, data analysis and
inferences may lead to false outcomes thereby challenging the very authenticity and
credibility of research outcomes. In order to ensure that this research generates valid
and credible outcomes ethical considerations that apply to this study have been
addressed aptly. It is to be noted that being a secondary qualitative study this research
does not required to obtain informed consent form the participant, data confidentiality,
right to privacy or no harm to the participant as in primary research. However,
understanding the ethical obligations the researcher has observed due diligence in
ensuring that every aspect of research is ethically appropriate and abides to the ethics
of research field. To ensure this, this research has included highly authentic,
authoritative and reliable sources of information which can be deemed verifiable and
valid for the study.
The study has included most relevant and appropriate secondary data that elaborates
how Tesco’s HRM has revolutionized its work culture and adopted principles of
sustainability in ensuring a highly socio-culturally adaptable and friendly enterprise. The
study has incorporated recent upgrades Tesco’s HRM has adopted to improvise its
work culture and maximize effects of sustainability at workplaces.
 32

THEMATIC CODING TO EXAMINE TESCO HRM’S ROLE BUILDING IDEAL WORKPLACE

CODES THEMES DERIVED FROM THEMATIC DIMENSIONS

CODES
Adoption of IoT at work
Improved learning culture
Equality at Work place
Training innovation
Emphasis on training/
learning
Learning incentive offered It can be clearly inferred that
Hefty investments in training TESCO has been adopting
advanced and innovative In a nutshell, it can be
Incentivized Training
methods and practices to concluded that TESCO has
Focus on Talent Retention been effectively leveraging
maximize performance and
Imparting specialized yet optimal employee
service quality across HRM
diverse training programs performance and
processes by emphasizing on
Compensation/ Benefit maximized profitability by
every criterial aspect of HR
Strategy way of boosting a culture of
management which primarily
Rewards and Recognition innovation and
includes skill development,
Focus on people quality improvement, sustainability which is
Skill development knowledge acquisition, evident form its consistently
Performance oriented training comprehensive and improved work practices
Focus on Quality innovative training programs
Crucial role of SHRM and through development of a
Talent training highly agile, friendly,
Focus on talent retention supportive and cooperative
Quality talent recruitment work environment.
Hefty investment on people Tesco has been successful in
development adapting remote work culture
Focus on employee by transforming its
engagement conventional work practices
Supportive managers into remote work culture by
Consistent improvements in way of embracing
HR practices technologies, innovation, and
Priority on employee needs better HR practices
consistent innovativeness
Fair business practices
Prompt performance
appraisals
Ideal leadership style
Supportive leaders
Improved collaboration
Fosters team working
Fosters workforce diversity
Habit of adaptability fostered
better work environment
 33

Fostered remote working

Inclusion of AI to optimize
business processes
Adoption of hybrid work
culture
Improved sustainability
practices towards employees
Wellness programs
Skill development programs

4.4 Research Findings

The findings of the study involving deductive thematic analysis suggests diverse factors
impacting on the Tesco UK’s HRM which have played a s significant role in fostering
culture of innovation and sustainability at workplace. The study progressed from moving
towards conducting a systematic and in depth analysis of secondary data by reviewing
the secondary literature to identify appropriate codes and themes lacked within the rich
data sets. As ample secondary information was required to be examined and filtered for
conducting coding and theming varying and multiple codes and patterns of themes
which were found to be occurring and reoccurring was detected by the researcher found
to be the key contributors of generating themes.
The data derived post conducting thematic analysis showed diverse and indispensable
role of Tesco’s HRM in shaping organization’s work culture and foster innovation and
sustainability across UK. It was identified based the interlinkages of themes that Tesco
HRM has been consistently evolving by way of updating and upgrading its HRM policies
across UK. Consistent improvements in HR policies and practices enabled Tesco HRM
to foster culture of innovation and sustainability that eventually led to transformation of
the business form a conventional static enterprise to a highly dynamic modernized
enterprise. Tesco UK has been incorporating innovative practices and policies within the
workplaces focusing on talent development and retention which is evident from diverse
training programs run by the enterprise. The company has successfully attaining
anticipated outcomes of its HRM initiatives which is reflected through increased
retention rates, employee loyalty towards the employer, improved performance of
business operations, and increased employee satisfaction. As showed by a plethora of
secondary data Tesco has been successful in imparting innovative training programs to
develop its talents and leverage optimal benefits form its human resource.
The codes and themes derived in thematic analysis strongly suggests an effective trend
across Tesco branches in UK to boost its HR’s capabilities and performances which is
achieved by way of imparting quality training and skill development programs
organization wide. The patterns and codes obtained from thematic analysis clearly
dictate Tesco’s firm belief in its talent which is evident form its substantial investment in
 34

human capital. The company has laid substantial emphasis on internal learning and
people development in order to ensure talent development yields maximized
performance outcomes of the business and also ensures people of the organization are
engaged in long term with the business. Tesco’s way of fostering culture of innovation at
workplace is innovative due to the fact that the business has been successful in deriving
varying advantages in terms of quality of talent, performance outcomes, employee
engagement, employee loyalty, and increase in retention rates, competitive work force
and superior collaboration across UK Tesco centers. These advantages are
accomplished by sheer focus developing its talents by way of updating and upgrading
their knowledge and skills relevant to business.
Tesco has substantially emphasized on its leadership quality and nature which is
extremely appropriate and suitable for Tesco’s objectives and goal fulfillment. The
adoption of transformational leadership style at Tesco has worked wonders for the
company in terms of fostering collaboration, team work, open communication among
stakeholders, embedding technologies with leadership to adapt to changing work
culture (hybrid work culture, and lastly, foster a culture of innovation and sustainability
through fair work practices. The business has laid significant emphasis on equality and
fairness at workplace which is evident from the employee engagement, loyalty towards
employer, increased job satisfaction and retention levels.
It can be inferred that there is strong interlinks and coherence between the inferences
drivable form plethora of secondary data and derivatives of deductive thematic analysis.
The interlinks that can be established between the secondary data inferences and
thematic analysis clearly suggested credible and reliable outcomes of data analysis
which can be cross verified with the source data. This suggests that the results of this
research are valid and credible. The occurring and reoccurring codes in the thematic
analysis strongly dictate Tesco’s consistently evolving HRM policies and practices
aimed at developing and advancing its human capital in terms of imparting advanced
training and learning programs that involve extensive use of information technology,
business technologies, and integration of human and technologies for efficient business
operations and management.
4.5 Evaluation of Outcomes and Discussion
It can be inferred that the inferences derivable from deductive thematic analysis clearly
show evidences of Tesco’s continuous improvement initiatives towards fostering culture
of innovation and sustainability. The codes obtained from deductive thematic analysis
clearly emphasizes on Tesco’s consistent endeavors and focus on improving work
culture by way of adoption of innovative technologies in diverse business processes
whether supply chain process, operations processes or administrative process which
facilitate in efficient business functioning and fosters stakeholder collaboration and team
work. It can be aptly inferred from patterns obtained in codes ad themes and from the
interlinkages observable in thematic analysis which strongly suggests the cause and
effects of Tesco’s consistently improved performances, profitability, and market
 35

dominance in the sector. For instance, interlinked codes such as hefty investment in
human capital, training innovation, adoption of IoT in diverse business processes are
directly related to Tesco’s increased performance and productivity which are a
consequence of company’s consistent focus on building its human capital by way of
reskilling and upskilling its employee capabilities and talents. Furthermore, incentivized
training and reward and recognition are strongly interlinked to people development and
emphasizes on Tesco’s participation and interest in developing its human capital form a
holistic perspectives. This is because of the fact that employees get training and their
training performances are rewarded too suggesting company’s keen interest in fostering
people’s careers and lives by way of fulfilling sustainability objectives from HR
perception.
A systematic review of thematic analysis and establishing interrelationships between
complementing factors of similar nature and characteristics revealed that the role of
Tesco’s HRM across UK business centers has been pivotal in shaping and determining
company’s growth and success over the years. Tesco’s focused approach to people
management has been a highly admirable initiative for companies that aspire to grow
and succeed with its people. The business has demonstrated how people’s growth and
welfare can be optimally leveraged for business benefit by way of fostering a culture of
cooperation, collaboration, integrity, innovation, and technology at workplace which
eventually aids in attainment of sustainability objectives. With a focus on building quality
and performance of the business Tesco has substantially invested in its people
development by way of imparting innovative reskilling and upskilling programs which are
backed by attractive incentives based on individual training performances of employees.
The company has trust in its people which is evident form its hefty investment in
training, people development programs and embracing diverse upskill and reskill
programs.
Correlating codes of similar characteristics traits it can be aptly identified that Tesco has
lately incorporated state of the art technologies backed by AI at its diverse business
centers and process to optimize its performance efficiency and productivity evident from
its consistent growth and success across UK. For instance, adoption of AI, remote work
culture, habit of adaptability, hybrid work culture, and fair work practices are correlative
and complement which other in terms of company’s upgrades of business practices. It
can be understood that in order to fulfill emerging challenges posed by business
competition, address changing business trends and attain international competitiveness
essential for sustenance Tesco has thus spend hefty capital on training and developing
its workforce.

To address the emerging challenges of business competitiveness, employee

engagement and performance outcomes Tesco HRM focused on strategy that serves
multiple purposes and objectives. The company adopts transformational leadership
strategy to deal with workforce issues relating to collaboration, motivation, employee
 36

engagement, adaptability, flexibility, performance of the workforce, and effective

communication. Transformational leadership is adopted by Tesco across diverse
processes and operations and management to ensure that there remains minimal or
negligible gaps between employees and leadership when it comes to mutual
understanding, collaboration, communication, and functionalities. The adoption of
transformational leadership has immensely aided Tesco in maximizing the performance
of its employees at individual and collective levels. This resulted in increased
performance levels of the company at every regional center across UK.
Transformational leadership at managerial levels, supervisory levels, and operational
levels proved immensely helpful in motivating, inspiring and engaging employees to
their roles and responsibilities and ensured a sense of belongingness among
employees. Employees at Tesco enjoy working at their centers due to the inspirational
and motivational work culture backed by technological innovation, learning,
performance appraisals and incentives, and rewards and recognition offered for every
stakeholder. Tesco’s SHRM primarily aims to meet organizational objectives and goals
through people development and skill upgradation which is efficiently accomplished by
the company’s HRM over the years. Additionally, wellness programs designed for men
and women entirely cover every health aspect and wellbeing to ensure Tesco’s
employees are always protected and taken care of by the company whenever and
wherever in need. Therefore, based on the careful examination of secondary data
backed thematic analysis it can be said that Tesco’s HRM has indeed played a
substantial role in fostering a culture of innovation and sustainability across its UK
business centers.

4.6 Chapter Summary

This chapter has aptly elaborated data analysis, findings and research outcomes with
discussion of findings. The appropriate data analysis and methods enables researchers
in arriving at valid and credible outcomes of study. Data validity in this research is
established by justifying the quality and authenticity of research data and methods
applied for conducting this study. The study has justified its rationale for applying
appropriate chosen methods and techniques by interlinking diverse codes and patterns
found as rich data sets in secondary data included in chapter two.
 37

Chapter 5: Conclusion

5.1 Summary of Research

This study was carried out to investigate the role of HRM of Tesco UK in fostering a
culture of innovation and sustainability. The research primarily adopted secondary data
and information was analyzed by qualitatively by applying deductive thematic analysis.
Following are the key findings of this research
- UK Tesco’s HRM certainly played an indispensable and integral role in fostering
a culture of innovation and sustainability evident form diverse secondary studies
included in this research
- Tesco UK particularly adopted state of the at business relevant technologies for
maximizing its performances and productivity across UK centers
- The business spends hefty capital on its people to ensure company’s talents
contribute their optimal capacities for organizational growth and success and in
turn derive diverse benefits
- Adoption of hybrid work environments, inclusion of IoT/ AI, incentivized training
programs, improved policies for employee wellbeing and care are some unique
features adopted by the business to improvise its work culture
- Tesco UK is people focused and hence the business invests hefty capital in
training and learning activities and programs for reskilling and upskilling its
employees. This has significantly aided the company in maximizing its
performances and earnings over the years.

5.2 Reflection on Research Questions

1) Does Tesco’s organizational HRM has a key role in fostering culture of
innovation and sustainability?
This study has strong evidence of the fact that Tesco UK’s HRM plays a significant role
in fostering culture of innovation and sustainability which can be verified from diverse
secondary literature. Various studies incorporated in this study strongly suggested that
Tesco has been consistently evolving in terms of improvising its HR practices and
policies which is evident from Tesco’s increased retention rates, consistent performance
and increased revenues, and improved jo satisfaction rates.
2) Has Tesco adopted HRM reforms to ensure improved business performance and
sales lately?
 38

Yes of course, considering the COVID impacts TESCO UK’s HRM developed and
implemented innovative policies and practices such as hybrid work culture, adoption of
automated and AI backed business practices and processes, remote working
environment etc.
3) Is Tesco ready to upgrade HRM practices and strategies considering challenges
in UK retail market?
As suggested by this research Tesco UK has always embraced innovative technologies,
HR practices and strategies to upgrade its business and people. This is evident form
diverse secondary data and thematic analysis conducted in this research.
4) Has Tesco been successful in aptly addressing the issues of sustainability over the
years?
Tesco has attained a satisfactory level in attaining sustainability issues when it comes to
its people’s wellbeing and welfare. Fair work practices, equality, no discrimination
policy, and education for all are some examples of Tesco’s initiatives towards
sustainability. It is suggested in diverse secondary data that Tesco has tailored
appropriate HRM policies for its workforce when it comes to employee health, wellbeing,
welfare and learning and careers.

5.3 Recommendations

Following are some important suggestions for Tesco UK to further optimize its
performance and productivity -
a) Tesco UK must adopt emerging trends when it comes to technology, AI, and
automated processes to boost its performance and improvise its accuracy
and reduce dependency on humans
b) The business must diversify its products and services to further maximize its
market reachability and penetration
c) The company should focus on producing its own branded products that are
economical and innovative particularly in electronic segment to dominate
specified demographic groups of customers
d) The business must focus on diverse demographic groups to capture potential
target groups of customers to optimize its sales. This may include targeting
kids, older customers, elite class customers, or even young ladies. Capturing
 39

diverse groups of consumers will allow Tesco attain a unique identity and
capture the market rapidly.
e) Tesco UK should actively participate in sustainability in diverse areas
involving nature, environment, societal healthcare, animal welfare, care for
the destitute, etc. This will immensely aid the business in fostering
sustainability through diverse ways and improve its goodwill in the market.
f) Introducing appealing and attractive loyalty programs, deals and discounts,
membership benefits and other privileges to customers will not only attract
more consumers but also ensure increased sales for the business form
marketing perspectives
g) From sustainability perspectives Tesco UK must endeavor to develop its own
packaging materials acting in best interest of nature and environment. This
will compel consumers to make Tesco their preferred brand for future
purchases due to increasing consumer awareness among consumer
community towards environment. Tesco should adopt biodegradable
materials for their packaging and shipment processes.
h) Offering varying discounts to specific groups of customers such as old aged
customers of kids attracts a particular demographic groups thereby capturing
the market overtime eventually resulting in increased revenue for the
business.
 40

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