Importance of HR Practices to Business Strategy

Human Resources

Table of Contents
Table of Contents.............................................................................................................................2
Task2................................................................................................................................................3
Introduction......................................................................................................................................3
HR practices...........................................................................................................................3
Importance of HR practices to business strategy...................................................................4
Impact of HR practices on company......................................................................................6
Task3................................................................................................................................................7
Reflective Essay...............................................................................................................................7
Conclusion.....................................................................................................................................10
References......................................................................................................................................11

Task2
Introduction
Human resource management plays an important role in effectively managing people in
organisation so that they can perform their roles and responsibilities efficiently and help in
achieving organisational objectives. HRM performs various activities like hiring, compensation,
training and development, motivation, employee retention etc. so that a pool of talented
employees can be formed in company who can use their skills and abilities in achieving
company goals. In this report Tesco plc which is a multinational British retailing company and is
3rd largest retailer in world in terms of gross revenue and 9th largest in terms of revenue is taken
so that the importance of HRM can be understood. In this report the importance of HR practices
to business strategy will be discussed so that effective HR management can be done in an
organisation.
HR practices
Any practice in an organisation which helps in enhancing the competencies, satisfaction,
commitment and performance of employees are called HR practices which are important so that
company goals are efficiently achieved (Bluth, Bansal and Bender, 2017). HR practice also help
an organisation in gaining a competitive advantage in market as through effectively managing
the employees the changing needs and wants of customers can be fulfilled through innovation
and improving quality of goods and services. In an MNC like Tesco plc, HR practices also play
an important role in formation of business strategy as the human resources are to be effectively
managed so that business goals can be achieved. HR practices include following practices in
Tesco which help in managing employees in company so that they can perform their work
effectively:
 Creating safe and healthy working environment: It is important that a safe and healthy
workplace is created for employees so that they can use their skills effectively in
performing their work. In Tesco which is a MNC it is important that a good working
environment is created which can help the workers in using their maximum potential in
achieving company goals (Byrne, Peters and Weston, 2016).
 Performance appraisals: The employees must be given appraisals based on their
performance which can help in improving their morale and motivate them to perform

better in organisation. This creates a healthy competition among workers and help in
managing employees efficiently.
 360 degree performance management feedback system: Employees must be given
feedback based on their complete evaluation of their performance so that the areas of
improvement can be found and their performance can be made more effective. This can
also help in continuously improving the work efficiency of employees so that better
quality of goods and services can be made available in market (Domínguez-Falcón,
Martín-Santana and De Saá-Pérez, 2016).
 Fair evaluation: Evaluating the performance of workers with their ability in achieving
company goals is important so that they can be fairly evaluated and appraised
accordingly.
 Effective training: Training and development programmes must be initiated in company
so that the skills of employees can be upgraded which can help in improving their skills
and motivating them to perform better through personal and professional development.
Importance of HR practices to business strategy
Business strategy is related with the decisions and actions which are planned by an
organisation to achieve its goals within a certain time period and budget. It also help in
determining the step that the business needs to take so that it can reach to its goals strategically
through the way of decision making, hiring appropriate workforce and resource allocation. In
multinational organisations, HR practices help in strategic management and achieving
organisational goals at both national and international levels (Eldor and Harpaz, 2016). HR
practices help businesses in managing their workforce so that business strategy can be effectively
implemented and it can achieve success both at local and international levels. Tesco is a
multinational organisation and the HR practices in company play an important role in managing
the employees in all its braches so that common organisational goals are achieved. Following are
the ways in which HR practices help in effective implementation of business strategy:
 Communication: HR mangers help in developing effective communication within
organisation so that information can be shared efficiently within company so that
employees can perform their work efficiently (Harolds and Recht, 2016). In the
international organisation it is important that the language barriers are reduced so that
effective communication can be established in organisation and employees can be