Human Resource Management Strategies for Competitive Advantage: A Case Study of Tesco

This study analyzes the impact of national and corporate culture on staff management, organizational levers to manage human resource, and job design strategies adopted by Tesco. It also provides recommendations for HRM practices to maintain organizational performance.

Human Resource
Management

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Drawing on strategic HRM models and concepts and HR strategies by aligning with demands
of labour market...........................................................................................................................3
Impact of national and corporate culture on management of staff..............................................5
Organization levers to manage human resource that leads to competitive advantage.................6
Analysing job design strategies adopted by TESCO...................................................................9
Using corporate examples of local and transnational firms to illustrate good HR practices.......9
Recommendations regarding HRM practices for maintaining organisational performance.....10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
Human resource management is being defined as the strategic method which assist the
business in managing the people within the company. For the effective working it is very
important that company must focus on the effective human resource. The present study is based
on Tesco which is a British multinational chain of supermarket founded in 1919 by Jack Cohen.
The current study will outline the difference between HRM and personnel management. Further
it will outline the impact of national and corporate culture relating to staff. Further the evaluation
of organizational lever will be done along with job design strategy. In the end, the example of
local and transnational firms will be undertaken along with some suggestion.
MAIN BODY
Drawing on strategic HRM models and concepts and HR strategies by aligning with demands of
labour market
Human resource management in the company mainly emphasizes on selecting and
recruiting competent and potential employees for company. This helps in enhancing strategic
position of company in market. Strategic HRM is the process for managing employees by
attracting, rewarding, selecting and retaining employees for company for serving better and with
efficiently for achieving goals and established objectives of TESCO.
Warwick model
By adopting this model in Tesco supermarket help in emphasizing on external as well as
internal factors. Interaction between these two factors will help company for adapting various
changes being implemented in environment. The most important aspect of adopting this model as
this helps in identifying all environmental factors and its influence on the HRM in company
(Stone, Cox and Gavin, 2020). Various external factors including social, political, technical
factors interacting with all the external factors as of cultural, structure, policies and strategies
adopted by company. By interrelating and interconnecting all these factors helps in achieving
growth and increase the performance of doing various task in companies.
Forum model

Forum model of strategic HRM mainly emphasize on four functions as selection,
appraising employees, training and development and rewarding. This model mainly emphasize
on four approaches other HRM aspects are ignored by adopting this model. By adopting this
models helps in maintaining growth and increases profits margins for company (Models of
strategic HRM, 2022). As it maintains organizational growth helps in reducing manufacturing
cost and assist in selecting potential employees and rewarding employees for establishing
competitive advantage of business. Further by training and organising various developmental
programs.
Various HR strategies can be adopted by various business in order to increase the performance of
company.
Talent management
Selecting and recruiting competent employees for performing various task in company
helps in attaining desired objectives of company and aid in achieving growth this strategy is
formed by Human resource management for completing and performing various task by the
talented employees.
Investing into competent employees
HRM design this strategy for acquiring competent and talented employees, as this helps
in recruiting right potential personnel’s for achieving desired task outcomes. By adopting this
strategy helps in recruiting selective employees which results in providing satisfactory
performance in company.
Operating online
As by advancing technology, all large retail business is adapting this strategy to operate
online after covid as for maintaining sales and profit generating capacity for the company. By
operating online helps company in providing products and services (Battour, Barahma and Al-
Awlaqi, 2021). As due to covid operating online business by assigning work from hoe duty to all
employees for achieving optimum balance quantity to be sold by company for maintaining sales
and profits.
Safety of workers
This strategy aid in emphasizing on the company’s safety and security of workers.
Various approaches and methods being adopted by Tesco for ensuring safety and security as
sanitising hands while working in company. also wearing mask for purchasing from offline

stores and maintaining distance between various individuals helps in ensuring safety and security
of workers.
Employees relations
Various strategies and approaches are used by human resource management for building
relations with the employees as for creating sense of belongingness a friendly working
conditions (Do, Budhwar and Patel, 2018). These strategy ensures for modifying changes which
helps in fulfilling all needs and wants of employees in company.
Rewarding and compensation
Various policies designed for rewarding and compensating employees in fair basis helps
in achieving success and increasing growth for company.
Performance management
Performance management strategy is being designed by the company for improving
various areas providing better consumer services, achieving profits and helps in improving
profitability to the company. Various tool for monitoring and evaluating performance of
employees is used by HR manager as KPI s, feedback helps in resolving all the issues and
problems being faced employees. By implementing this strategy in company helps in motivating
employees by boosting morale which helps in achieving success and growth in company.
Corporate social responsibility
This strategy is adopted and designed by HR managers, as ensures in operating business
by following all the ethical rules and regulations (Lopez-Cabrales and Valle-Cabrera, 2020). By
adopting this helps in creating positive business environmental and aid in fulfilling corporate
social responsibility.
Thus by adopting various HRM strategies in company helps in accomplish various tasks
with competent personnel’s.
Impact of national and corporate culture on management of staff
Corporate culture means the beliefs of the individual person who are working in an
organisation and how they deal with the stakeholders of the company. Tesco corporate culture
has a positive impact on the management of the staff. For example, company gives benefits to
their employees and not discriminating while hiring. In addition to that satisfies the clients of the
company by providing them good quality products (Boon, Den Hartog and Lepak, 2019). Tesco
has a good culture that motivates their team members to work towards the development of the

innovation. It will further lead to the growth of the company as well as individual growth of
team.
Moreover, Tesco gives activities to the staff and also motivates the employees so that
they work effectively. Motivational tools also help the Tesco in managing the staff as every
employee has a different way of getting motivation. Management motivates the employees by
considering this aspect like some workers are want to work in a team, other employees are
motivated by flexible work hours (Gomez and et.al., 2019). It also includes relation of employees
with others and some looks for relaxed work hours so Tesco consider also this factor and it has a
positive impact on the management of staff.
National culture means the beliefs and behaviours of the populations of the country. It
impacts the whole organisation. National culture includes religion in this company should make
policies by considering all employee’s religious needs at work. Further it includes language in
this Tesco tries to communicate with the staff so that they understood what has been told to them
(Dartey-Baah, 2011). Tesco management tries to understand the role of language as it is
important as employees understands or not. Besides this, Tesco focuses on the time management
as individual employees are punctual with time or not.
Further, organisation has set the time by considering employee aspects so that every
employee works effectively. It further improves the staff performance at work and they satisfied
with the job. Tesco uses Power distance for staff management as in this company share
knowledge, resources and the information to the employees uniformly. When equal distribution
is there among the team they will work better and it helps company to manage the staff.
Organization levers to manage human resource that leads to competitive advantage
Lever is a tool that is used by the management to improve their business by considering
various aspects and then make changes in the organisation. Levers used by the Tesco to gain
competitive advantage they are as under-
Training and Education- With regard to this lever Tesco management communicates
vision, mission, goals to their employees. They also provide training to their staff members and
enhance their skills so that they perform well in the job (Azizi and et.al., 2021). Further there is a
need of change in the company in such case management also provides new skills to the
employees. Proper training given to the employees helps them to perform better and it increases

the productivity in the organisation. Besides this, it also leads to increase in the competitive
advantage.
Organisational structure – In this Tesco management made an organisation chart which
includes hierarchy that every employee follows. In this all the positions and their job descriptions
are mentioned so that every staff knows about their role. This structure further eliminates the
confusion among the staff members and they effectively work their part. Tesco organisation
structure consists of 3 levels top level that takes major decisions of the company. Second is
mediate level in this board of directors and other managers perform many functions they are
related to marketing and advertising.
Moreover, Management improves the coordination between the median level with top-
level and base level. Base level employees in this employees report to their manager and
responsible for their own work. This structure of company successfully manages the workforce
in the firm and it will also beneficial in the future. It will further lead to development of the
organisation and expansion of business.
Communication- In this lever management tries to properly communicates with the team
members so that they easily understood. Besides this company tries to two-way communication
among the team and team members of the company. Many a times employees don't know what is
going on in the organisation as they don't properly understand. When the proper explanations are
given by the management regarding implementation of change as sometimes employees don't
listen properly (Vrontis and et.al., 2021). When staff resists change in the organisation they don't
pay attention this will decreases the productivity in the company. In such case Tesco
communicates again and again to the team and benefits of change so that they understood. By
this way Tesco effectively manage the human resource and it leads to increase in competitive
advantage.
Resourcing- Resourcing helps the firm to find the right people for the job. Tesco with the
help of external recruitments agencies hire the very skilled and talented people in the
organization. Further it also hires employees through internal procedures like through career
page invited application for various jobs. Company make changes in the requirements of the job
and also included skills that are needed in the job. Tesco finds the best candidates that matches
all the skill set in regard to job (Manzoor and et.al., 2019). When skilled people are hired by the

company this will work effectively in the firm this will increases the productivity in the
organisation. It will benefit the organization to be more competitive in the industry.
Rewarding employees for success- When the company rewards it's employees it has a
positive impact on the growth of the organization. Tesco give rewards to its employees in terms
of bonus and also offers club card facilities in which they get 10 % discount offers. In addition to
that company also gives yearly bonus to their employees and also offers incentives schemes to
the employees on the basis of performance. It increases the productivity in the organization as
employee’s performance at Tesco increases. Tesco rewarded its employees by giving benefits in
addition to basic pay. Employees of Tesco feels more satisfied and with the positive mind-set
they are likely more focused on the work.
Moreover, rewards given to the employees motivates them and they stay for long term
with the organisation. Further, it creates the positive environment in the company and
management offers benefits to the top performer in the organisation (King and et.al., 2020). In
such a way Tesco manages its human resource and satisfied employees perform well and it
increases overall productivity in organisation. Further it will lead Tesco to more competitive in
the industry.
Shifting Resistance- Whenever any change is implemented in the organization employee
resists. It further leads to conflicts among them. Management of Tesco must communicate all the
benefits to its employees related to change. Besides this, put efforts to involve every staff and
encourage them how much this change is important in the organization. Tesco effectively engage
the employees and listens every employee and gets feedback from them whether they are
understanding or not (Damawan and Azizah, 2020). Management continuously takes reviews
from the staff whether they are having any issues and solves their concerns. They find different
ways to solve the problems staff is facing while adopting the change. Tesco supports its staff and
assures that change is accepted in the organisation as planned.
Provided Infrastructure- Tesco company provides infrastructure to its employees
whenever any change is about to implement in the organisation. This can be in the form on new
software that is installed in their working and provides necessary tools. By providing proper
infrastructure company manage its human resource and make it clear to all the staff of the
change. When the necessary tools given to the staff they also understand the importance of
change (King and et.al., 2020). By providing proper infrastructure to organisation they will adopt

the new changes and improves the working conditions with the given equipment’s. It will
Further make the organisation more competitive in the industry.
Analysing job design strategies adopted by TESCO
Job designing strategies are those which helps in motivating employees and add value by
creating jobs for recruiting competent employees for working in company. These strategies are
used by TESCO company for recruiting and filing vacant position which helps in contributing
and achieving organizational goals effectively.
Tesco company uses job enlargements strategy for designing job, as this strategy adds
various new roles to employees while performing the existing roles in company. As while
working in store as appointed to the roles form managing desk work by adding other
responsibility of cleaning and maintaining shelves and arranging all the products of in stores
properly (Mom and et.al., 2019). Thus, by adding more role and responsibilities helps in learning
new skills for better working and operating stores of company. As by enriching job of employees
in company helps in developing skills and abilities of performing various work. Furthermore, by
enlarging job of employees in company, Tesco company also add additional roles and
responsibility on employees for instance as maintaining cash counter of supermarket with
allocating products in stores help consumers to find necessary products which are required by
them from stores as by taking information from employees.
Tesco company is also using job enrichment strategy; this strategy mainly focusses on
satisfying employees in the existing role being assigned by company. This strategy is used by
company for developing employees by organizing various trainings. This helps in grasping better
career options (Subramanian and Suresh, 2022). Various incentive programs and compensation
benefits is being offered by Tesco to employees for contributing extra efforts and over time
working in company. This helps in achieving desired goals of company and rewarding
employees at fair basis.
On the basis of this analysis the job strategy used by the Tesco has a positive impact on
the organisation. This strategy helps the employees to work on various areas and new skills are
learned by the employees while working on different levels. It motivates the employees to work
harder and increases productivity of the organisation.

Using corporate examples of local and transnational firms to illustrate good HR practices
Examples of local and transnational firms for illustrating good HR practices followed in
businesses are: ASDA local firm in UK, adopted selective hiring of talented personnel’s. In this
company forms a strategy and hires talented and skilled people in the organisation (Iqbal and
et.al., 2019). Company considers the certain skills sets while recruiting the candidates and it
further increases the productivity in the firm. Talented people work harder and increases the
profits of the company.
Moreover, ASDA company has made an effective strategy plan to select the candidate of
for various vacant positions. Further organisation provides better offering to the skilled
candidates in terms of salary package so it will attract the candidates to work in the firm. This
will improve the quality of life of employees and also helps in the growth of life.
Example of Transnational firm i.e. Sainsbury adopting hr practices is training and
development in this company provides training to employees as when proper training is provided
they work better in the organisation. It further leads to increase in the productivity in the
company. This practice uses by the hr so that every employee gets properly trained and complete
their work properly. In this skills are also provided to the employees so that they get expert
knowledge in the field.
Recommendations regarding HRM practices for maintaining organisational performance
 It is recommendation to company in case of online operating of business they must guide
the employees so that they better understand the use of technology. In addition to that in
case of technology up gradation firm must provide time to time training so that they
remain updated in terms of new implementation in firm.
 It is advisable to the company to encourage communication among the employees and at
various levels in the company. Sometimes due to improper communication employees
don't perform well
 so organisation must clearly communicate goals, objectives to the employees. It will
increase the organisational performance.
 Tesco company must provide all the necessary tools whenever any change is
implemented in the firm. It will help the employees in accepting the change and they will
work better in the company (Hong, Zhao and Stanley Snell, 2019). Further Tesco must

provide all the necessary information related to change at initial stages so that it brings
positive results.
 Tesco must increase and motivates employees for participating in decision-making
processes which encourage team working and decisions in adapting changes easily. It
will further help company in maintaining companies position.
 Tesco must improve its selection procedure and recruits more talented people in the
organisation. Firm must select the candidates that are fit with the desire role and qualities
needed for the job. Further, company must hire more skilled employees in the firm and
more talented people who will serve better in the organisation.
 It is recommendation to Tesco to must adopt proper evaluation system in the firm. With
this system employer properly evaluate the employee’s performance and make changes in
the working practices. Further, Tesco must remove the practices that are not bringing
optimum results in the organisation.
 It is advisable to company efficient team must be maintained by the company in order to
achieve high performance. As the HR practices must be designed for supporting team
working and rewarding team excellence by using various tools as of communication
software, feedback tools for encouraging diverse employees working together for
achieving combined goals.
 Tesco company must provide better security options to employees for retaining talented
employees. Firm must provide health insurance facilities and in addition to that provides
perks to the employees in order to retain them (Mira, Choong and Thim, 2019). Tesco
can also add food reimbursement offers in their retention package this hr practices helps
to retain good employees which further improves the overall performance in the
organisation.
CONCLUSION
In the end it is concluded that use of human resource management is very important for
the company as it improves the working efficiency and capability. The above report evaluated
that there are different models and theories of HRM like Forum model and others. Further it was
analysed that different impact of national and corporate culture is positive and it promotes
growth of company. in addition to this it was inferred that for levering organization to manage

human resource involves managing organizational structure, training and education and others.
Along with this, the job design structure involves job enrichment strategy.

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