Customer And Organizational Complexity In Organizations Essay


Discuss about the Customer and Organizational Complexity in Organizations.



The purpose of this report is to provide an overview of compensation management system in Tesco Company. The report describes the significance of job analysis and job description in the organization. It further explains the significance of job evaluation in the company Tesco, along with a comparison between planned and standard performance appraisal process in the organization. Tesco Plc. is a British multinational company dealing in retailing sector. The company is running since 1919 and is based in London, UK. Further, it shall be noted that Tesco is large scale company efficiently placed in the global market (Tesco, 2014). In order to successfully run in the market, the company also requires managing its human resource and gaining competence in the target market. For this purpose, the human resource manager needs to analyze the job profile for which they want to hire the person, after that the manager needs to assess the person description as well. Person description includes the type of the person with skilled aptitude and qualities which can satisfy the job requirement. Another major aspect which is equally important in initiating efficient human resource management is performance appraisal and basic pay, these are the two factors which help a person to get self-motivation to work in the company and help the company to reach its target (Our tesco, 2016). Further details about the task are discussed below.

Job analysis refers to the process of identifying and determining in detail about the particular job duties and the requirements. It is basically conducting a research on the type of job which the management of the company wants to create to fulfill their requirements. It is an important task for the human resource manager to initiate job analysis because with this information only the recruitment and selection process shall be conducted in the company. Furthermore talking about the job analysis process in the company, it shall be taken into accounts that on the initial basis the manager retrieves and collect accurate and authentic information about the type of work and required capabilities to do the job (Peng, Sun, & Mark?czy, 2015). This process is held in the internal management of the company as it is the descriptive part thus this process is implemented by the human resource managing team of the company. Like, in Tesco if there is vacancy for an administrative clerk, then the first and foremost thing which the manager has to do is to analyze the task which is performed by an administrative manager of the company. Further after analyzing the duties the manager of Tesco needs to initiate the recruitment and selection process. Job analysis is the initial step of the whole human resource planning process; also the performance evaluation program is also done through this process in the organization. Lastly, job analysis is initiated by the management of Tesco in order to get better and clearer understanding of the job and person description required by the team (Mohapatra, 2015).

Significance of job description in compensation management

For the compensation manager, it is an important task to evaluate the job description accurately for the proper working of the management. The company Tesco believes in assigning the right to the right person to avoid confusion and increase efficiency. Thus, job description is required by both employer and employee in the company, as job description helps the employer to assign the duties to the employees according to and it is required by the employees as it helps them to understand the need of their job. Further job description refers to the statement which identifies and describes the scope and functions of a particular job. A good job description eliminates the partial stress of recruitment process; and it defines the duties and clearly mentions the requirement of the company from the employee. Due to which only interest people apply for the job. Job description plays a significant role in the compensation management process of the HR manager as it clarifies and assigns duties to the employees (Bryce, 2017). It makes them obligated towards the certain job and provides responsibility and authority to fulfill it. Significance is that it clarifies confusion among the employees related to their job. According to the job description, only compensation which is to be paid to the employees is decided by the management. Some of the items included in the job description are job standard, job title, job status, job code, job summary, job introduction, responsibility, job specification. Further job description gives purpose to a particular job as it defines the main obligation of the job which tells the employees the work which they have to prioritize in their job. Also, it defines the performance standards which indicate the performance of the employees in the organization. The managerial team of Tesco evaluates the performance of employee on the basis of their job description only. Further, it assists the employee and tells them how to work and to whom to they shall respond in the organization it defines the duties of the employees along with the supervisors as well (Gupta, & Shaw, 2014).

Job evaluation refers to the process of rating the jobs in the organization. In the organization Tesco, it refers to the process of establishing value or worth for the organization in the job hierarchy. Job evaluation is part of the performance appraisal process of the organization. The values designed for the job under this process are later on converted to monetary benefits which are to be received by the employees. Thus, it shall be understood that the job evaluation process is initiated to implement the performance appraisal program by the compensation management (Reiche, Mendenhall, & Stahl, 2016).

Job evaluation provides the basis for developing the hierarchy in the organization and it also serves basis to the process of fixation of pay in the organization. It shall be noted that job evaluation is dependent on relations and is not absolute, that is why it is not the sole factor which determines the pay structure of an employee in the organization. It provides objectives to the compensation team to fix the pay structure of an employee and provide them appraisal. The initial point of job evaluation is job analysis. The main objective of job evaluation is to value the job according to its profile (Shields, et. al., 2015). This process increases the satisfaction of employees and reduces internal miscommunication with management as well. It helps in fixation of salary structure due to which the employees do not fight for their pay every time when they receive their salary. It also distributes the employees according to their work capabilities in the company, an employee who is paid more means that they are in the higher post than the employee who is paid less in the management. This process reduces the confusion in salaries due to which a good employer-employee relationship is maintained in the organization. Apart from that pay is the major factor which motivates the employees and keeps them retained in the job (Aswathappa, 2013).

Methods of performance appraisal

There are two types of performance appraisal methods mainly quantitative and non-quantitative. The further quantitative method also includes two types of job evaluation procedure which are discussed below:

  • Factor comparison Method: the job of employees is based on several factors; also the jobs of employees in an organization are compared with each other as well. So the initial step in the factor comparison method refers to the process of determining the jobs to be measured. This means the process of choosing the job which usually exists in all types of organizations and similar company labor market. The second step of this approach relates to the acknowledgment of compensable factors in the jobs, these factors shall be evaluated under this process (Johnston, & Marshall, 2016). The factors used in this process are mental requirements, skill requirements, responsibilities, physical requirements and job conditions. Afterwards each main task is ranked on the basis of compensable factors. Under this process, the decision is made under which each task which is to be done by the employees is ranked on the basis of information received. The initial task of this process is to arrange the compensable factors according to their priorities. Like, in the company Tesco for the position of product examiner the main compensable factors are knowledge about the product, physical capacity, evaluating abilities. After this process apportioning of the pay rate on each of the compensable factor is done. As discussed earlier the salary of the employees is based on the compensable factors and more of these values increase the compensation of the employees in the organization. Then ranks are given to the tasks according to the salary scale, beginning from the highest to the lowest paying job in the company (Katzenbach, & Smith, 2015).
  • Point method: the point method is used in the organization to analyze the job factor present in a particular job of the employee. Under this method, the initial step which the compensation manager has to do is to determine the job group which is to be evaluated in the organization, like the front line, administrative, clerical work etc. Later the manager chooses the compensable factors for the evaluation of the jobs (Schmitz, & Ganesan, 2014). After the compensable factors are chosen then the manager needs to acknowledge these factors according to their importance against relative factors present in the same job group. Then apportioning is done from the job groups only. After all, such evaluation is done; the manager shall rate the compensable factors according to their importance and then add multiplier on the compensation of employees. It works in such a way that, the employees are given certain points which multiplied with the compensable factor per cent which they conduct in their job process. And on the basis of points given according to the compensable factors, the appraisal is conducted for the company (Phillips, & Phillips, 2016).

Further, the non-quantitative methods are discussed below:

  • Ranking Method: this type of method is the simplest one to perform in the organization as it evaluates and arranges the jobs according to their importance in the management. Jobs in an organization are arranged on the basis of general assumption made by the manager in an organization. However, the above-explained compensable factor shall be used to determine the importance of the job and their ranks as well. The ranking method uses the index cards to rank a particular job. The index cards include notes which describe the jobs which are to be evaluated. This card gives ranking to the jobs from highest to lowest according to the hierarchy of the organization. And according to his ranking, only the compensation is divided among employees (Sauaia, 2014).
  • Classification method: this method of appraisal works in particular group which is called classes or job grades. Listing is the necessary information which explains the compensable factors needed for each job grade in the organization. Further, the jobs are evaluated by comparing the job description of each job present in the organization with the job grade notes (Isa, Noor, & Johari, 2012). Then job notes are being matched with the closest job description done in the organization. It is done to determine the job classification. Lastly, the management needs to check the jobs that they are being inserted correctly in the same class which they follow as it is the most important aspect of this process. The manager shall classify them on the basis of similarities present in their job description (Lewis, & House, 2015).

Sample of performance appraisal

The scheme which the organization is currently operating benefits the organization, but the employees can be rewarded in a better. As performance is a major aspect which determines the motivation level of employee in an organization (Armstrong, & Taylor, 2014). Further, the performance appraisal method for the job title of sale executive in Tesco is discussed below:

The goal implemented shall include the SMART features (Specific, Measurable, Action-oriented, Results-focused, and Time-bound). According to this only ranking shall be given to the employees in the organization. The compensable factors shall also be concentrated while evaluating appraisal of the employees (Bernardin, & Wiatrowski, 2013).

The employee in the organization shall be evaluated on the basis of the following table.

Goal 1

Description of goal:

The main objective of the sale executive is to meet the given target and increase the sale volume of the company. this goal relates to the dedication compensable factor of employee in the company Tesco

Being an existing employee of the organization, the executive shall achieve atleast 70 per cent of the target defined by the management to be considered under the appraisal criteria.



Goal 2:

The second goal of the executive is to manage interpersonal relationship with all the stakeholders of the company. This factor relates to the attitude and behavior compensable factor of the employee.

Reviews shall be taken from all the stakeholders of the company regarding the behavior of the employee in and outside the organization.



Goal 3:

The third goal which the executive shall fulfill is to communicate effectiveness to create good impression of the company on the customers.

Feedback forms shall be filled by the customers of the company explaining the negative and positive aspect of the sale executives in the organization.



Goal 4:

The fourth goal of the executive is relates to their focus on their job. This factor shall explain the level of their focus in the organization.

Reviews shall be taken from employer of the employee as they can judge them better.



Goal 5:

The fifth goal of the executive is the experience and knowledge which the employees possess in the job. Also it relates to the compensable factor team work.

The evaluator shall evaluate the contribution f executive in different activities performed in the organization and then appraise the performance accordingly.



The ranking shall be given from one to five under which the following remarks shall be given:

Rank 1: results are better than job standards. Good job!

Rank 2: consistently achieving the objectives and the employee effectively manages obstacles as well.

Rank 3: consistent in performing well but can work better to achieve the target.

Rank 4: minimum standards are met by the employee, inconsistent success.

Rank 5: need improvement, insufficient growth and lack of skills as well (Kampk?tter, 2017).

Lastly according to the ranks the appraisal shall be given to the employees in Tesco.

Standard performance appraisal

The company Tesco optimizing the 360-degree performance appraisal method in their organization for the sales executive job profile. The below mentioned is the format which Tesco follows to provide them appraisal.

  • Criteria: the survey assessed determines the knowledge, abilities, skills, and behaviors which they possess in the job. The knowledge assessment tells that how well the manager understands the job, company, work and the market on a whole. In the skills and abilities aspect, the evaluators of Tesco rate that efficiency the executive work and complete the task; they judge the efficiencies and qualities of the executives. The behavior accepts signifies the interpersonal relationship of the executive with the employees of company. Apart from that they also judge communication of the executives with the internal management and external environment of the company (Wisner, Tan, & Leong, 2014).
  • Benefits: as this process evaluates the skills and capabilities of the sales executive, thus it provides benefit to the company to adequately reward the employees by appraising their performance. Also, this system helps the company to collect multiple reviews from the stakeholders of the organization due to which performance appraisal is also based on multiple perspective and unanimous response. The process currently used by the company also focuses on the customer's definition of good sales representative, thus, an honest feedback is delivered by all the stakeholder of the company and the appraisal of executive is based on that response (Li, et. al., 2014).
  • Consideration: the employee of the company must accept the feedback given by the management of the company, they shall assume that the response is true and fair and is based on the efficiency of the employee only. As this method of performance appraisal adequately work in an organization where employees regularly collaborate which each other to other.
  • Warning: the organization needs to spend time gathering information, then analyze and evaluate the performance of the executive in the organization, and then provide them compensation accordingly (Landy, Zedeck, & Cleveland, 2017).

Thus in this way, the 360 degree performance appraisal program is applied in the management of Tesco.

Although the standard performance appraisal method implemented by the company is adequate but is shall be reinvented to appraise the performance of the employee in a better way. Thus, on comparing both the analysis the facts that came into existence is that the sample provides a better understanding of the compensable factors and it also gives the job description with help of which the evaluator can determine the performance of the employee in the organization. Also, ranks will motivate the employees and initiate them to work effectively so as to achieve the target (DeNisi, & Smith, 2014).


Thus, in the limelight of above mentioned statement, it shall be noted that the aspects of job analysis, job description, and performance evaluation plays significant role in initiating management in the organization. As these factors help the compensation manager to analyze the job and then pay them accordingly. So, it shall be noted that it is an important factor to understand the type of job which the person performs and pay them accordingly otherwise the employee would not get satisfied with the company (Tracey, 2016). And it will result in demotivation of employees and inefficiency in the organization. Thus it is an important aspect to keep the employees motivated and increase the effectiveness as well.

Apart from that the company Tesco shall apply adequate performance appraisal process in the organization to pay them. And for this purpose, it is important for the manager to analyze the entire factor and then evaluate the pay which the employee shall get. Apart from that, the manager of the company shall fix the pay according to the hierarchical system of the organization. An organization receives clarity after applying such aspect in the management process.


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