Value Creation and HR Strategies in Tesco

This report discusses the HRM function of Tesco, a leading retail brand in the UK. It explores the ways in which value is created through HR strategies, the impact of national and regional culture on HRM practices, the use of an appropriate employment model, HRM policies, and the hiring/firing processes. The report also examines the differences in employment laws and provides recommendations for Tesco.

HUMAN RESOURCE
MANAGEMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................4
A) Ways in which value was created by the company by using HR strategies...........................4
B) Impact of national and regional culture in the practice of HRM strategies............................5
C) Use of appropriate organisation’s model of employment.......................................................5
D) HRM policies or personnel management...............................................................................6
E) Hiring or firing........................................................................................................................7
F) Examining the differences in terms of employment laws.......................................................8
G) Suggestions/recommendations...............................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
HRM of human resource management is very important as well as mandatory function to
an organisation or business right, because this function enables to ventures for gaining an
effective workforce of many skilled and talented employees. There is competition is increasing
in each industry or sector right, and this is why top-level management of each venture have to be
something ready for improving its HRM practices to gain very higher competitive advantage in
the market place (Zhao and Priporas, 2017). Basically, HRM practice give great contribution in
enhancing overall performance and productivity of the organisation in market place. In this
dynamic and modern world, HR functions or practices provides opportunity to an organisation
for effectively gaining a very useful and productive workforce. This report discuses the HRM
function of Tesco.
There is Tesco is one of the most reputed and popular retail brands of the United
Kingdom which currently serves its products and services in 13 different nations or countries,
like; United States, Ireland, United Kingdom, South Korea, China, Thailand, Poland. It means, it
has large market share in the Europe as well as Asia. Headquarter of this retail company is
situated in England, UK. This venture has the strongest supply or distribution channel in its
home country United Kingdom, because currently Tesco leads in its home country’s retail
industry. According to the management of company, it always follows different approaches of
operations management and hires very excellent human resources to maintain an excellent
quality of products and services (Planning, 2017). This is one of key factors of company that
attracts many new customers towards own brand.
There ways in which value was created by the firm using HR strategies has been
discussed below in this report with the concept of strategic HRM. This report analyses the impact
of national and religion culture on the practice of HRM in chosen Asian country Thailand. On
the other side, model of employment, HRM policies, personal management, hiring or firing
processes also has been discussed in this report. The chosen Asian/African country for Tesco in
this report is Thailand.

MAIN BODY
A) Ways in which value was created by the company by using HR strategies
Currently Tesco is the large organisation in the international retail industry, because it
runs over 6800 shops and supermarkets with its approx. 450,000 employees or workers. This is
why the HRM function is very valuable for this company to increase its organisational value at
the internal level. Day by day competition is increasing in the global retail industry, and upper
management of Tesco fully knows about this fact, and this is why it always gives priority to hire
different talented and skilled employees in its workplace by using its HRM function. Basically,
HRM function plays an excellent role to this venture right now, and with the support of this
function, Tesco is maintaining its higher reputation at the international level (Pal and Chabane,
2018). Of course, there are other functions, like marketing, IT, production, logistics etc. also
plays great role to company for gaining better outcomes in the market place, but the HRM has its
special contribution in overall development of company.
Each venture has always required to use may talented and skilled employees or workers
in its workplace for maintaining its extra-ordinary performance in its respective industry, and this
is why existing HR department of Tesco gives opportunity to company for having may skilled
and talented employees in the workplace, because HR department of this retail company always
takes different productive steps towards providing proper training and development sessions to
all employees or workers. In this situation, after participating in these sessions of training and
development, any employee of Tesco can simply achieve appropriate in the market place.
Currently upper management of Tesco is taking lots of advantages from its other HRM strategies
as well. For example; employee relations, employee well-being, talent management etc. are some
other strategies of human resource management which has currently highly used by the HR
manager of Tesco for providing an excellent and productive workforce to company.
The concept of strategic HRM is also highly followed by the company’s HR department
for conducting different practices of human resource management strategically. Basically,
strategic HRM helps ton company for saving its precious time and resources in the workplace
while managing different human resources.

B) Impact of national and regional culture in the practice of HRM strategies
Currently there are national and regional culture of the chosen country Thailand highly
affects to different HRM practices of the company, in which upper management of Tesco have to
order its HR department for making a specific plan for systematically dealing with the impact of
these national and regional culture (Singh and Gupta, 2020). Basically, Thailand is an Asian
country which has the developing economic conditions, and this country’s economy is not
developed as the United Kingdom. However, nowadays most demands of people in this country
are similar to people of the UK. According to the regional and national culture of Thailand, most
people or customers in this country like to buy products and services only from those ventures
which always provides quality customer service. In this situation, this culture of people in this
country can affect to human resource management strategies of Tesco while running own
business operations in this nation. For example; the HR department will be influenced by this
culture to hire some skilled and talented employees in the workplace, because only such
companies or ventures are able right now to offer quality products and services which offers
quality products and services.
On the other side, there are business ethical and legal considerations highly matters in
culture of Thailand, and this is why most of people always avoid to buy products and services
from those ventures which not follows all existing legal and ethical considerations of Thailand in
its workplace. This culture will also highly affect to company’s human resource management
strategies of the company, and due to this culture the HR department of company has been
influenced to always follow the employment law which has developed by the government of
Thailand, and after following this law, the HR department of company will be able to gain very
positive outcomes in market place. For example; it can attract many talented and skilled people
towards its brand as employees, because most people in this country like to work with such
organisations and businesses which always adhere employment law. However, the management
and Hr department have to be ready for properly dealing with each impact of local culture of
Thailand.
C) Use of appropriate organisation’s model of employment
The model of employment at Tesco is ordinary as model of other organisations, but way
of managing employees in the workplace of Tesco is completely different from other

organisations (Board, 2018). Basically, this company mostly hires such people in its workplace
who really wants to make their career by working in daily operations of Tesco. It means, this
company believes in hiring maximum permanent employees in its workplace who wants to work
with this retail organisation for the long time period. According to Hr department of company, a
part time employee is always be capable to work more effectively in comparison of other
employees.
Existing model of employment within Tesco is very excellent for it’s all employees and
workers, because this venture and its HR department always follows all rules and regulations in
the workplace which has based on employees. Due to this reason, Tesco currently has excellent
workforce in its each country’s operations (Maroun, Daniel and Fynes, 2019). Day to day
competition is increasing in the global retail industry, and upper management of this company is
fully aware about this factor of market, and this is why it has already given order to its Hr
department to always manage the model of employment in proper way within the business
environment. Basically, model of employment within Tesco is very appropriate to its each
employee, because existing human resource management of company always provides them
proper sessions of training and development which are enough to them for growing effectively in
the workplace (Nguyen, 2020). Currently upper management of company hires those people also
in workplace who wants to work with organisation on the basis of part time contract.
With the support of own an effective employment model, Tesco is continuously
increasing its brand value in the market place, because this model of employment at company
always respects and value all types of employees and workers (Fahim, 2016). No matter an
employee comes from which background. Basically, this positive model of employment
influence to company for judging an employee according to its skills, knowledge and
workability, not according to its religion, colour, ethnicity and caste etc.
D) HRM policies or personnel management
In the Tesco’s operations of Thailand, the upper management and existing HRM
conducts both types of practices, Human resource management policies and personal
management. However, HRM policies are highly considered by upper management and Hr
department of company while running own business operations in different countries, including
Thailand. The HR department of company has generally formulated different policies for

creating a healthy and ethical workplace (Swarna Priya and Keerthi, 2019). The upper
management of Tesco never compromises with its various HRM policies, and this is why
currently it has some strict policies as well for removing such elements form the workplace
which can negatively affect to business environment of Tesco.
In the business operations of Thailand, Hr manager od company has followed different
policies, like; employment contracts, code of conduct, gratuity policy, leave policy, sexual
harassment in the workplace, employee provident fund and employee wages (Zhang and Mei,
2020). These all policies help to this company properly managing all employees in the workplace
who are belongs to local country Thailand. The main reason behind formulating these all
strategies is to run own business operations in fully ethical way. By seeing these all HRM
policies of the company, currently many talented and skilled employees of this Asian country are
like to work in daily operations of this retail venture.
On the other side, the managers and leaders of this company knows the value of personal
management as well, and this is why most leaders and managers of Tesco always motivates to
different employees or workers the workplace for always taking steps towards self-management
(Step, 2017). They are basically aware employees about the value of managing own self. During
training and development sessions, upper management and HRM of company always tries to
inform employees about how they can effectively manage their skills, abilities, knowledge and
other attribute in daily operations. The HR manager of company is taking lots of advantages
through own policies, and currently it has great opportunity to gain better workforce in
Thailand’s business operations as well.
E) Hiring or firing
Hiring and firing are not small tasks to the human resource management of Tesco while
running own business operations internationally. Tesco is the UK based company, but currently
it needs to follow all guidelines of the Thailand which has formulated by the local government
for the employees’ hiring and firing processes. In this dynamic world, most people want to work
with Tesco by becoming its employees, because it is a very reputed brand. It provides great
growth opportunities to people in the market place, in which it is very tough to the HR manager
for hiring people as well as firing people. Consideration of local culture is very necessary and
important to the company’s Hr department, because culture of a market place always affects to

company in the market place (Sapiens, 2018). According to the culture of Thailand, when a
company takes steps towards firing its an employee, then it has highly required to give proper
justification behind this action.
Considerations of local culture sometimes offers great growth opportunities as well to
different organisation in market place. For example; currently Thailand has developing economic
conditions, in which the HR management of Tesco can hire employees here on some low
monthly payment as compare to the United Kingdom, because the UK has the well-developed
economic conditions. However, most people in Thailand not joins such companies and
businesses which fires their employees on just small mistakes, in which HR manager of Tesco
have to consider this cultural fact that, it will be required to avoid fire employees on just small or
little mistakes (Bryson and et.al., 2020). However, it needs to make able to its employees for
overcome small mistakes, because sometimes they become big due to lack of proper supervision.
On the other side, Tesco also has some strict HRM policies, in which local employee have to
avoid such attempts in the workplace which are completely unethical. Local culture of Thailand
will influence to HR manager for being some friendly in the workplace, because manager’s frank
behaviour always makes comfortable to all employees in the workplace.
F) Examining the differences in terms of employment laws
Consideration of international HRM system is very important and necessary to an
organisation in the market, because these changes can affect their human resource management
practices in the workplace (Altarawneh, Shafie and Ishak, 2020). Currently the department of
Tesco is very aggressive in the terms of following and adhering employment laws of all
countries where currently it operates, and this is why most people like to work with this company
in the market place. Basically, employment law enables to all employees or workers to feel some
independent or freedom while working in workplace of a company. With the support of
employment law, existing employees of Tesco are able to achieve their basic rights in the
workplace, like; right safety, right to informed, right to be protected etc. (March, 2017).
Currently upper management and HR management of Tesco knows that there is each country has
formulated its own law in the welfare of employees, in which upper management of company
has already given order to its HR department for adhering employment law of each market place
where it operates.

In this situation, the management of human resource properly adheres employment law of
Thailand while running its business operations in this country. Basically, international HRM
changes influence to Tesco’s HR department for treating very ethically to all employees in the
workplace. This is the main reason that, most employees within the Thailand’s business
operations are very satisfied with the company. However, there are employees also has required
to fulfil their obligations and duties while working in workplace of Tesco. For example;
employees have to be responsible for completing those all tasks on time which was allotted by
their leaders and managers (Hussain, 2016). On the other side, employees have to avoid
conducting unethical practices in the workplace, because it is very important to enable Tesco for
gaining better outcomes in the market place.
G) Suggestions/recommendations
On the basis of above findings, it can be recommended that the existing HR department
of Tesco needs to be very active as well as energetic in its workplace, because it is necessary to
make the function of HRM very excellent in the company. Of course, present HR manager at
company is very passionate for its job role, and due to continuously increasing market
competition, the manager has to be more aggressive to enable Tesco for gaining huge
competitive advantage in the market place. Currently Tesco runs in many countries including
Thailand, in which while running own business operations at abroad, the HR manager should
ensure that it is properly following all guidelines, rules & regulations and laws or not which haw
formulated by the local government of existing country (Veersma and et.al., 2017). For example;
the HR manager of the company follows and adheres all laws, regulations etc. of Thailand which
has formulated in the welfare of employees.
it can be also recommended that currently each business is trying to have an excellent
workforce of many skilled and talented employees in their workplace, in which upper
management of Tesco also needs to be some active in order to manage talent of different
employees in workplace. It can use different strategies of talent management, like; training and
development, promotion, hiring talent, etc. These all techniques as well as strategies will be able
to gain very appropriate outcomes in market place, because a talented employee always puts its
huge efforts in the workplace in comparison of an ordinary employee (Sheet, 2018). The

management of HRM need to believe in using modern techniques and strategies in daily
operations to gain very positive outcomes in current competitive market place.
CONCLUSION
It can be concluded that there is the function of HRM (Haman Resource Management is
very important as well as very necessary function to an organisation. Currently there is no
venture ca achieve appropriate outcomes in the market place without conducing different
practices under the function of HRM. Basically, HR department of a company always has many
obligations and duties (Quadri, 2019). For example; this is the department which takes different
steps towards offering proper training and development sessions to all existing employees of the
workplace. On the other side, this is the function which has followed all stages of performance
management. With the support of HRM, employees of many companies are able to grow their
career as well.
Tesco is very popular retail brand in across the world, in which HR is one of key
functions of company which is putting own huge efforts for maintaining an effectiveness of
brand within the selected market segments (Murray and Scuotto, 2016). By formulating different
productive policies, the HR department of Tesco is successfully running its various business
operations in the retail sector of Thailand. In this dynamic world, such employees or workers
highly matters to an organisation which are capable to performing very well in the workplace, in
which HRM is the only functional department under the Tesco’s business environment which
takes steps towards turning an ordinary employee into an extra-ordinary employee or high
performer. At the end, after having many high performers and talented employees, Tesco is able
to gain very positive outcomes at the global retail industry.

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