HRM Practices in Tesco: A Case Study on Malaysia

This report focuses on the HRM practices in Tesco, a British retailer, in Malaysia. It discusses the HR strategies, impact of regional and national culture, organization's model of employment, and the use of organizational levers. It also highlights the differences between Personnel Management and HRM in the organization.

Human
Resource
Management

Contents
INTRODUCTION...........................................................................................................................................3
MAIN BODY..................................................................................................................................................3
HR strategies............................................................................................................................................3
Impact of regional and national culture on practice of HRM...................................................................4
Organization’s model of employment and the use of Organizational levers...........................................5
Difference between Personnel Management and HRM in an organization.............................................6
HRM practices..........................................................................................................................................7
Difference in the terms of employment laws..........................................................................................8
Recommendations...................................................................................................................................8
CONCLUSION...............................................................................................................................................9
REFERENCES..............................................................................................................................................10

INTRODUCTION
Human Resource Management refers to the use of strategic approach to ensure that the
identification of goals and objectives which are related with Human Resources can be attained in
the future (Ali, 2016). Thus it is quite essential for the companies to make sure that its use is
made so that they are able to ensure that the efficiency and effectiveness level can be enhanced
in the future. This report will focus on Tesco. It is a British Retailer which provides groceries
and other related products to the customers in the market. It has a strong presence in Asia with
presence in different countries. It is strong in Malaysia where it has multiple stores. In this
report, there will be detailed focus on multiple aspects of HRM which are used by the company
in that Asian country to increase the efficiency and effectiveness level of its human resources for
the achievement of short-term, medium-term and long-term goals and objectives.
MAIN BODY
HR strategies
The use of HR strategies is required by the organizations so that their HR management
and HR policies can be made even better which will be helpful in the attainment of the goals and
objectives in the future (Amarakoon, Weerawardena and Verreynne, 2018). The following HR
strategies are used by Tesco in Malaysia-
 Competitive salaries- For retaining the best talent in the organizations it is quite
important that competitive salaries are offered (Al-Jahwari and Budhwar, 2016). In this
way the firms are able to make sure that they are able to attain the desired goals and
objectives in the future without problems and issues. Tesco offers competitive salaries to
its staff members in Malaysia which allows it to retain the best talented people within the
company.
 Benefits packages- The organizations are required to ensure that benefits packages are
offered to the workers which enable them to enhance their overall focus and
concentration in a better manner (Askenazy and Forth, 2016). Thus Tesco offers better
benefits packages to its staff members in Malaysia which enables it to attain the desired
goals and objectives.
 Promotion opportunities- The firms need to offer relevant promotion opportunities to
the workers so that they can make sure that they are able to ensure that they can progress
further in their career. In this way Tesco offers these opportunities to its employees in
Malaysia which enables them to make the best utilization of talent to progress further.
 Staff training and development- The organizations are required to provide their staff
with an opportunity to ensure that their relevant training and development is able to take

place in the right manner. Thus In this way Tesco is able to ensure that its staff members
can progress further by making the use of the available opportunities in the future.
 Focus on employee wellbeing- It is important for the firms to put their focus on
employee wellbeing as a part of their HR policies to ensure that the workers are healthy
(Das and Kodwani, 2018). Tesco uses it in Malaysia and ensures that it can easily attain
the goals and objectives in the future.
 Employee autonomy- The employees of an organization can be provided with relevant
autonomy for being used in the future (Alhejji and Garavan, 2016). Thus in this way the
workers can be able to take important decisions by themselves. It will also make sure that
the employees are able to work in the right manner and raise their overall efficiency and
effectiveness. Tesco applies this strategy in Malaysia to derive the desired results.
Impact of regional and national culture on practice of HRM
The regional and national culture of Malaysia affects the HRM practice of Tesco. This
impact is seen in the following manner-
 Respect of culture- The culture of a country has to be respected by a company who is
operating there (Guest, 2017). Thus in this way Tesco ensures that it is able to frame its
HRM policies in such a manner so that the culture of Malaysia can be respected. This
allows it to make sure that the attainment of goals and objectives is able to take place
quite skillfully.
 Identification of practices- The culture of a country has different types of practices
which are quite unique to the country (Bell, Brown and Weiss, 2018). Thus a company
like Tesco considers this when it frames its HRM policies in Malaysia so that it is able to
appropriately deal with the different types of needs and requirements.
 Feelings of the employees- The regional and national culture of a country is important to
be considered by the companies so that the feelings of the workers can be respected (John
and Taylor, 2016). Tesco considers these feelings of the different types of workers in
Malaysia so that its HRM policies are set accordingly thereby helping in the attainment of
the goals and objectives without problems and issues.
 Problems of the workers- The regional and national culture of a country is crucial to be
considered by the firms so that they are able to work in the right manner in order to
ensure that problems of the workers can be identified pretty quickly (Budhwar and
Mellahi, 2018). This has to be considered by Tesco in Malaysia which can enable the
company to make sure that the appropriate methods for solving of problems are applied.
 Identification of cultural differences- The regional and national culture of a country is
quite important for being considered by the organizations. The company can identify the

cultural differences in its Home Country and the Country where it is operating. Thus
Tesco considers all this in Malaysia which enables it to properly respect these cultural
differences and enabling it to attain the different goals and objectives.
 Respecting the limitations in the culture- The regional and national culture of a country
is important for the firms (Budiarti, 2017). This is so because by considering it the
different types of limitations in the culture can be respected. Tesco is required to consider
the same in Malaysia which will allow it to frame its HRM policies in the right manner
which is according to the culture of the country thus helping it a lot.
Organization’s model of employment and the use of Organizational levers
In Tesco the use of following model of employment is made-
At first, the screening of the CV’s of the applicants is done by Tesco so that it is able to
identify the best person who can work successfully with the organization. After that the
candidates who are found suitable are called for Interview so that a thorough judgment of their
overall personality can be made in a highly effective manner. Thereafter, the successful
candidates from the screening process attend the assessment centre. The unsuccessful candidates
are sent a letter. The successful candidates are invited for attending a second interview. The
successful candidates are then offered an offer letter and contract. This is the employment model
which is followed by Tesco for recruiting and selecting the candidates. Thus Tesco adopts the
same model in Malaysia to recruit and select the candidates.
The different types of organizational levers are also used by the company to manage its
operations properly in the country where it is operating its business operations. These levers are
explained as follows-
 Strategy- This refers to the use of strategy for managing the work in another country
(Kianto, Sáenz and Aramburu, 2017). Tesco makes use of effective HR strategies in
Malaysia which allow it to make sure that it is able to achieve its different types of HR
goals and objectives. This will enable the company to help in the attainment of HR goals
and objectives without problems and issues.
 Structure- This means the setting up of organizational structure in the right way so that
the HR goals and objectives can be attained (Clark and et.al., 2016). Tesco makes the use
of appropriate HR strategies in Malaysia which are helpful for it in maintaining the
organizational structure in the right way. For that it follows a hierarchical organizational
structure.
 Leadership- This refers to the use of leadership so that the organization is able to work
properly in the attainment of the goals and objectives (Melton and Meier, 2017). Good
HR leadership is used by Tesco to enable it in working in the right manner to attain the
HR goals and objectives.

 People- This refers to taking the care of people working in the organization (Murphy,
Klotz and Kreiner, 2017). Thus Tesco uses different methods and techniques which allow
it to make sure that the best care of people is taken by it in the organization helping it in
the attainment of goals and objectives.
 Decision Process- This means adoption of a right process so that the different types of
decisions are taken in the right manner (Devine and et.al., 2019). Thus Tesco makes sure
that this process is effective in Malaysia for taking the right HR decisions.
 Culture- This refers to the culture within a specific organization (Durrani and Rajagopal,
2016). Tesco ensures that it adopts a positive culture in Malaysia which can enable it to
be able to be positive in the behavior towards the workers and achieving the relevant
goals and objectives easily.
 Rewards- This means the rewards which are given to the different types of employees
within an organization (Heffernan and Dundon, 2016). Tesco offers best rewards to its
workers in Malaysia thereby channelizing efficiency, effectiveness and productivity from
them.
Difference between Personnel Management and HRM in an organization
Personnel Management and HRM are quite different from each other. Thus in the
organizations it is crucial that the differences between them are identified. The following are the
differences between the two-
Approach- The approach of Personnel Management is considered as traditional because
it is followed in a majority of the organizations. The approach of HRM is considered as modern
because it is followed due to the new changes (Natal’ya and et.al., 2016). Thus Tesco makes sure
that the use of both of them is done at appropriate time in Malaysia.
Treatment of manpower- In Personnel Management manpower is considered as
machines or tools (Howells, Sauer and Shanklin, 2016). However in HRM manpower is
considered as assets because of the value which they offer to the organizations. Thus in this way
Tesco is able to ensure that it makes use of HRM approach for dealing with manpower. This is
done in Malaysia according to the situation.
Type of function- Personnel Management is a routine function which is used regularly in
the organizations (Pellegrini, Rizzi and Frey, 2018). However HRM is a Strategic function which
is used at the right time according to the needs and requirements. Tesco makes use of both of
them at appropriate time in Malaysia depending upon its needs and requirements.
Basis of Pay- Personnel Management’s basis of pay is Job Evaluation in which the
overall evaluation of the job roles and functions is done properly (Renwick and et.al., 2016).
However in HRM the basis of pay is Performance Evaluation so that the evaluation of the

performance is done in the right manner. Tesco ensures that it uses HRM properly to evaluate
performance of workers in Malaysia so that they are paid according to performance.
HRM practices
In Hiring and Firing there is a particular importance as well as significance of local
culture and HRM practice. It is so because of the following reasons-
 Respect of culture- HR managers should respect the culture of the country where the
organization is operating (Onik, Miraz and Kim, 2018). It is quite important for the
company because it allows it to be able to identify the differences between the culture in
Home Country and the culture in the country where it is currently operating. Therefore
Tesco respects the culture of Malaysia and considers the same while taking decisions
related to Hiring and Firing.
 Respect of practices- HR managers should ensure that the appropriate HR practices are
used by the organizations. Thus Tesco’s managers make sure that they use the right HR
practices in Malaysia by providing the desired respect to the cultural practices in the
country when it comes to the decisions like Hiring and Firing.
HRM practices to be carried out in transnational subsidiary of Tesco-
 Identification of specific roles- The specific roles which are required in the HR
department in the transnational subsidiaries are required to be identified. Thus Tesco is
required to make sure that the identification of these roles is done in a proper manner
which is therefore helpful in taking the right decisions related to the subsidiaries.
 Identification of HR policies- The use of specific HR policies will be important for the
HR department to make sure that the subsidiaries can run in the right manner (Sharma
and Bhatnagar, 2016). Thus Tesco ensures that with the application of proper HR policies
it is able to make sure that the subsidiaries can operate effectively and efficiently.
 HR decision-making- The use of different types of skills related with HR decision-
making should be made so that it can help the companies a lot in taking better decisions
related to subsidiaries in the future. Thus in this way Tesco ensures that proper HR
decision-making can be used by it so that the different types of benefits are created for
the future.
 Use of HRM processes- The HRM processes which have to be used by the companies in
relation to the subsidiaries have to be determined. This is essential to make sure that
seamless decision-making can take place in the future. Therefore in this way the use of
proper HRM processes is mad by Tesco so that it is able to ensure that the HR goals and
objectives can be attained without problems and issues.

Difference in the terms of employment laws
The employment laws of the country where an organization is operating have to be
respected by its HR department. However, there can be differences in the terms of employment
laws when International HRM changes local business systems. These differences can be
explained as follows-
 Change in employment terms and conditions- Due to a change in the International
HRM the employment terms and conditions can be updated by the HR departments
within the organizations (Saeed and et.al., 2019). Thus in this way the HR department of
Tesco can change employment terms and conditions if the International HRM requires it
to do so.
 Change in labor policies- A change in the International HRM can lead towards a change
in labor policies also. Thus in this way the HR department of Tesco is able to make sure
that the labor policies are changed if the International HRM has the requirement to do so
and take such an action.
 Change in Wages and Remuneration policies- Wages and Remuneration policies can
be changed by the HR department of the organizations so that they are able to comply
with the needs and requirements of the International HRM (Stavrou and Ierodiakonou,
2016). In this way the management of Tesco will be able to make sure that different types
of important decisions are taken in the correct manner.
 Change in the terms and conditions related to condition of work- The terms and
conditions related to condition of work can be changed by the HR department in the
organizations if the if the International HRM requires it to do so. Thus in this way Tesco
would be able to make sure that it is able to change according to the various types of
needs and requirements which can be quite helpful in the future.
 Trade Unions and Industrial Relations- The various types of relations of the
organizations with Trade Unions and Industrial Relations are required to be updated
according to the HRM requirements. Thus in this way the HR department of Tesco is able
to make sure that the relevant adjustments are done by it in a proper manner which will
ensure the attainment of the goals and objectives in the future.
Recommendations
The recommendations for the management of Tesco so that it is able to ensure that the
organizational performance remains high are as follows-
 Assess the skills and capabilities of the workers- It is important for the HR managers to
frequently assess the skills and capabilities of the different workers (Shipton and et.al.,
2016). Thus it is recommended to the managers of Tesco that they can assess these skills

and capabilities by making the use of appropriate performance measurement techniques
so that the organizational performance can be increased.
 Identification of the roles to be offered to the workers- For the HR managers it
becomes important that the different types of roles which are offered to the workers are
determined (Tung, 2016). Through the determination of these roles the HR department of
Tesco will be able to allot the tasks according to the capability level of the employees
which will enable the attainment of the goals and objectives in the future.
 Frequent performance assessment- The HR managers of the organizations should make
sure that the frequent performance assessment of the workers can be carried out (Woo,
O'Boyle and Spector, 2017). In this way they will be able to identify the areas where the
employees can improve thereby channelizing higher-level of organizational performance.
For this the use of Performance measurement techniques like KPIs, Benchmarking and
Balanced Scorecard can be used. Tesco is thus required to make the right use of these
techniques.
 Providing skill training- In the HR department of the organizations the relevant skill
training policies can be determined so that the skills of the workers are enhanced (Yadav
and et.al., 2019). Thus in this way Tesco will be able to enhance the overall skills of its
employees which will offer it plenty of benefits for the future. Thus in this way it can be
said that the use of skill training is quite important for Tesco.
CONCLUSION
From the above report, it can be concluded that Human resource management is a very
useful approach for the HR department so that it is able to manage its different workers without
facing problems and issues. It is quite important for the HR department of a company that the use
of different HR policies can be made so that the goals and objectives can be achieved in the
future with better planning. Thus in this way it can be said that the use of appropriate HR
policies is quite necessary so that the HRM in an organization can be made better and the
employees of the organization are highly satisfied by it.

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