Importance of HR Practices to Business Strategy

This article discusses the importance of HR practices to business strategy and their impact on the company. It explores the role of HR practices in managing employees and achieving organizational goals, using Tesco as a case study. The article covers topics such as creating a safe and healthy working environment, performance appraisals, 360-degree feedback system, fair evaluation, and effective training. It also highlights the ways in which HR practices help in implementing business strategy, such as communication, developing strategies and solutions, considering demographics and social trends, employee engagement, and aligning organizational strategy with HR strategies. Additionally, the article discusses the impact of HR practices on the company, including improving workforce quality, performance, and working standards. It concludes with a reflective essay on the author's experience as a human resource manager at Tesco.

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

directed towards achieving company goals. Tesco use effective communication channels
so that the employees can be aligned towards achieving its goals in an efficient manner.
 Developing strategies and solutions: HR practices like training and development
programmes, performance appraisals, employee reward systems etc. should be developed
such that the employees can be motivated in utilising their complete potential and
competencies in achieving organisational goals. These strategies should be formulated
based on the laws of the country in which company is established which can help in
integrating the employees with company goals effectively so that they can be achieved
both at domestic and international level (Kallio and Hyvönen, 2016).
 Demographics, social trends and technology: It is important that the business mangers
give importance to social trends and demographics in the organisation so that they can be
adopted in managing human resources. It can also help in developing new technologies in
company so that employees can use them and help in achieving organisational objectives.
In the international businesses changing demographics and social practices of employees
must be effectively managed so that they can be motivated in using their skills and
abilities in achieving company objectives (Le Coz and Pulcini, 2016).
 Employee engagement: Employees in an organisation must be engaged so that they can
become more committed towards the company along with enhancing their job
satisfaction. The HR managers must increase employee engagement so that the
employees can improve their work performance and help the company in achieving its
objectives on time both in domestic and international branches of company. It can also
help the employees in becoming more engaged with the company so that they can give
suggestions regarding decisions so that improvement in decision making can take place
and also employee retention in company can increase.
 Alignment of organisational strategy with HR strategies: It is important that the
organisational strategies should be aligned with HR strategies so that the management of
human resources can be done such that company goals and objectives can be achieved.
This also help in inculcating team behaviour such that they work towards achieving
company goals which make workers in international branches motivated in achieving
common company objectives (Lev and Lueke, 2017).

It can thus be said that HR practices help the company in achieving its objectives through
determined business strategy by effectively managing employees of company so that they can
use their skills effectively. In Tesco the HR mangers of company implement such practices in
company which help in motivating the employees so that they use their skills effectively in
achieving company goals. This helps the company in becoming successful internationally as it is
able to efficiently manage its human resources and direct their skills in maximising company
profitability and productivity (Lucas and Verry, 2016). Through the implementation of HR
practices Tesco is able to build a culture where employees are highly engaged in company
decision making so that effective decisions can be made. Also they help in increasing innovation
in organisation which is important for gaining a competitive advantage in market so that it can
effectively survive in international markets.
Impact of HR practices on company
Managing human resources of company are important so that financial outcomes of company
can be increased by increased performance of employees in company through effective HRM
practices. These practices also help in improving behaviour of employees towards the company
so that they can become more committed towards company and use their skills and competencies
in maximising profits of company. They also help in enhancing the motivation of employees
which is important in improving the work culture in organisation so that productivity, positivity,
innovation, quality and turnover of company can be improved. Tesco also provide flexible
working environment to its employees so that the work life balance of employees can be
improved and they can contribute towards enhancing company profits. Also Tesco follows
international employability laws so that workers in its international branches can work
effectively and can be treated legally. This help in increasing their trust towards the company
along with building a strong brand image of company in market so that sales of company can
also increase and more talented staff can also be attracted towards the organisation (Masri and
Jaaron, 2017).
Workforce quality, performance rate, working standards etc. can be improved through
effective HR practices in organisation which are important in achieving business goals as per
plan so that the budget can be managed and profits of company can be increased. International
organisations should thus effectively manage its employees so that its common goals are
achieved and profitability of company can be maximised. It can also help in increasing the

competitiveness of company in market through improved innovations so that changing customer
needs can be efficiently met.
Task3
Reflective Essay
While working as a human resource manager at Tesco in its branch located in UK i learnt
about effective human resource management in a multinational organisation which help it in
becoming successful in the market. Tesco treats its employees as valuable assets and work
towards enhancing their job satisfaction which is important for both the growth and development
of company and employees. This help in creating a healthy working environment in the company
and increasing cooperation among employees so that they can complete their work efficiently so
that company goals can be achieved. Various HRM practices are applied in Tesco so as to
manage the employees and their work which help in enhancing their work efficiency and
productivity so that brand image of company can be improved. I worked as a human resource
manager at Tesco and the company structure and culture helped me in efficiently performing my
work of managing employees in the company strategically. Tesco provides wide career
development options to a variety of employees which help it in becoming the largest private
sector employer in UK and it also encourages talent in company so that they can effectively grow
and develop in company. The company also has branches in more than 11 countries which help it
in acquiring talents from a large talented pool so that its efficiency in market can increase and its
brand image can improve.
Recruitment in Tesco for a job role is done both internally and externally depending on
the availability of required workforce among the exiting workers. Selection of workers on the
other hand is done through interview practices so that highly skilled and competent workers can
be made part of organisation. Management of workers is effectively done through various
practices like allocation of work among workers based on their skills and talents, performance
appraisal, training and development, employee engagement, compensation and rewards etc. All
these practices help in motivating the workers in company so that they remain focused on their
work and help in achieving company objectives on time. I used participative leadership in Tesco
so as to increase the participation of employees in decision making so that the employees can
feel valued and appreciated for their work and abilities. This also helped in improving work

culture and motivated the employees to contribute towards the company by giving their valuable
opinions and suggestions. Through participative leadership the employee engagement also
increase which is beneficial for enhancing their productivity by maintaining proper and
consistent relations with employees.
Career development theories are also applied in Tesco so that professional growth and
career trajectory of employees can be improved along with enhancing their job satisfaction so
that a good relationship between work and employees can be created. This helps the organisation
in improving the work performance of employees while motivating them to improve their
performance. Frank Parson’s trait and factor theory is used by Tesco which help it in analysing
the traits of employees so that they can be allocated the work as per their characteristics so that
they can perform the work at hand in an efficient manner. This theory is applied by the company
while selecting the employees for specific job role so that highest job satisfaction can be given to
the employees by matching their traits and giving their jobs based on their interests. Through this
theory an effective work culture gets developed in organisation and helps the employees in using
their talents effectively so that high profits can be achieved by Tesco.
In Tesco the motivational theory which is applied is Maslow’s hierarchy of needs theory
which help the company in fulfilling the needs of employees so that they can stay motivated in
performing their roles effectively. The hierarchical needs include psychological needs which are
associated with basic needs like water, shelter etc. which is fulfilled in Tesco by paying wages in
accordance with employment legislation laws. Safety needs which are related with having secure
working environment, job security etc. which is fulfilled in Tesco by providing the employees
highly secure and safe working conditions. Need of belongingness which is related with the
ability of associating and making relations with co-employees and managers of company which
is fulfilled in Tesco through increased group activities. Self esteem needs which are related with
the ability of feeling appreciated and valued in company for their work which is fulfilled in
Tesco through reward system, performance appraisals etc. Self actualisation needs which are
related with personal and professional development of employees in organisation which is
fulfilled in Tesco by giving challenging tasks to the employees along with continuous training
and development of employees. Thus it can be said that Tesco motivates its employees so that
they can work continuously towards achieving its goals and objectives.

While working in Tesco i gained skills related with effectively managing staff so that
their problems can be resolved and they can be provided efficient working environment which
can help them in using their skills effectively. Career development and career management plays
an important role in Tesco as giving importance to building careers of employees enhances their
trust in company and also encourages them to efficiently use their skills so that profits of
company can be maximised. They also help Tesco in maintaining a talent pool in all its
international branches which help it in gaining a competitive advantage in market along with
improving its brand image through improved job satisfaction among employees. Tesco manages
its international staff effectively through global talent management and succession planning. As
a human resource manager at Tesco used to efficiently apply the succession planning process so
that the talented employees in company can be prepared for key job roles. In this process first
identification of important job roles is done which needs to be quickly filled so that recruitment
and selection of employees is done. After this the main responsibilities, competencies and
requirements of the job role are defined along with the personality traits that best suits the job
role. After this employees having required competencies are selected and are trained and
developed efficiently so that they can perform their job roles effectively.
In Tesco global talent management tools are also used so that the employees can be well
managed in its global branches which can help in increasing their effectiveness of their work and
improving their work performance. This helps Tesco in becoming successful as an international
organisation and achieving company objectives through effective talent management. I also used
various techniques in managing talent in Tesco so that employees having the required skills can
be attracted, recruited and retained in company. This is useful in effectively performing the roles
and responsibilities as this is helpful in generating effective results in company. While working
in Tesco i have improved my managerial skills so that employees of company can be effectively
managed and directed towards company goals. It also enhanced my capabilities of monitoring
talent and dealing with challenges associated with human resource management. I faced certain
challenges while managing the employees like distribution of work among members,
performance evaluation, engagement of employees, motivation etc. However, the organisational
structure and culture in Tesco helped me in efficiently dealing with these challenges so that
effective working environment can be created. Use of 360degree feedback mechanism,

performance appraisal, effective training and development programmes etc. helped me in
managing the employees in company so that they can work towards gaining company goals.
It can thus be said that Tesco is an efficient firm in managing its employees through the
application of effective theories and models so that the business strategy can be effectively
implemented and organisational goals are achieved. My work experience in Tesco has been very
good as the company also focuses on career development and career management of its
employees which is essential in managing the career of employees. This enhances trust among
employees towards company and helps them in effectively using their capabilities in improving
brand image of Tesco. Performance management tools are also efficiently applied in Tesco so
that employee performance can be improved thereby increasing its profitability in market. This
also helps in personal and professional development of employees by making them more
efficient in their work through continuous improvement.
Conclusion
From this report it can be said that HR plays essential role in the success of an
organisation as its practices help the company in managing its employees so that business
strategy can be effectively applied and company objectives are achieved on time. It can also be
said that MNCs can manage their employees internationally through effective HR practices so
that various international challenges can be dealt with and productivity of employees can be
increased. Also career development and performance management must be applied in
organisations for their sustainable survival in market by improving employee performance and
commitment towards organisation.

References
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