Managing Human Resources: Best Practices, HR Planning, and Talent Management

This guide on managing human resources covers the best practices of HR planning, strategic HRM approach, and talent management. It includes insights on forecasting future staffing needs, supply and demand issues, and more. The guide is relevant for students studying HRM, business management, and related courses.

Managing Human Resource

TABLE OF CONTENTS
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
Defining and explaining best practices of HR planning along with pros and cons of strategic
HRM approach.............................................................................................................................3
The proposal of HR planning process and methodology selected to assess current staffing
conditions.....................................................................................................................................6
Internal and external factors for forecasting future staffing needs, supply and demand issues in
current market and recommendations for talent management in HRM.......................................9
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Human resource management is a strategy through which people of the organization are
effectively and efficiently managed. It is the process of recruiting, selecting and managing the
human resource of organization. Tesco is a multinational grocery which is the third largest retail
shop in the world headquartered in Welwyn Garden city, England. Tesco has reached this
position only because of its effective management team. Tesco has an effective HRM team who
effectively manage diverse workforce form different culture and background.
The project highlights definition, explanation, the best practices and analysis of HR
planning inclusive of advantages and disadvantages of this strategic HRM approach. Outlines
about the proposed HR planning process in Tesco including the methodology selected to assess
HR capacity. A detailed discussion about the future staffing needs and supply and demand issues
in current market. The project also includes any talent development recommendation which will
form part of the HRM business proposal.
MAIN BODY
Defining and explaining best practices of HR planning along with pros and cons of strategic
HRM approach
Human resource planning is a strategic approach used by HRM to balance the supply and
demand of employees in the organization. This is the process of forecasting future requirement
of employees and developing an approach to fully utilize the human resource capacity in an
organization. HR planning process helps the management to meet future demand of employees
with the supply of appropriate people at correct time and place.
HR practices are set of processes and techniques that provides organization with optimal
business performance (Ybema, van Vuuren and van Dam, 2020). The best HR practices are one
which align with the organization's goal and objective and give value to the business. There are
many benefits of implementing the best HR practices:
 Increase employees productivity and improve talent management
 Improve employee retention and corporate reputation
 Maintain organizational culture Monitor progress to ensure organization's goals and objectives are achieved
The best HR practices are:
Hiring potential people:

Employees are one of the pillars of organization. HRM need to ensure that they are hiring
skilled and qualified employees into organization so that they can contribute to the culture and
success of the company. In order to hire a right person one needs to ensure that the hiring process
is good (Wang and et.al., 2020). HR needs to forecast the demand for employees in organization
and balance it with the supply.
Continuous training:
HR needs to conduct training and development programs not only for newly hired
employees but also for existing employees. Continuous training is important to increase the
professional skills and to make employees aware of changing technologies. Due to this ongoing
training programs there will be low employee turnover as this will increase loyalty in employees.
Create healthy work culture:
A healthy and safe environment needs to be created so that employees feel secure and be
satisfied. A company can create a healthy work culture by creating trust among employees make
them aware of different cultures (Malik, Baig and Manzoor, 2020). Working in a team so that
there may be effective communication and this will reduce conflict among them. Company needs
to maintain transparency and create open environment for feedback. Conduction of regular
survey to gather thoughts and ideas of employees so that they feel valued and get involved in
overall success of business.
Compensate employees fairly:
Company needs to have a great compensation plan to retain potential employees. It is
important for the company to make employees feel that their efforts are being valued by the
company so that they can give more efforts towards success of the company. This can be done by
giving them performance based rewards and bonuses along with the salary (Best practices,
2021). A well-designed performance linked rewards and bonuses would encourage employees to
improve their efficiency and productivity.
Practice fair termination policies:
Employees who are being terminated needs to be given chance to change their behaviour.
This can be done by regular evaluation of their performance. If performance of employees are
not up to mark then they need to be terminated and employer needs to communicate this with
employees without any hesitation (Yang and Arthur, 2021). A performance improvement plan
can be made with employees to give them chance to improve but if company is not satisfied by

the performance then employees will not get any further chances. Creating a fair and transparent
termination process is very essential for the company.
Strategic human resource management (SHRM) is required in an organization to match
the HR requirements with business strategy to achieve the goals of organization. There are many
advantages and disadvantages of SHRM.
Advantages of SHRM:
Improves team building:
SHRM helps to nurture a feeling of team building within the organization. This
encourages an open and effective communication between employer and employees and
employees would feel like their ideas are being appreciated.
Well organized management of resources:
SHRM helps the organization to measure the value of their human capital and needs to
compare their assets with the qualification of employees. This helps them to forecast the
requirement of employees at right time and recruit them at right place so that they may contribute
towards the success of organization (Karman, 2020). SHRM helps management to organize and
maintain employees in the company.
To recruit and retain people:
SHRM helps to know the requirement of employees and helps to recruit potential
employees that can be fit with the requirement. Retaining the employees in the company is as
important as recruitment. SHRM has helped management to decrease employees turnover.
To motivate people and help them in development:
SHRM has created a work culture that helped employees in their own development.
Performance linked rewards are being given to employees this encouraged them to increase their
potential.
Disadvantages of SHRM:
Future doesn't blossom as anticipated:
SHRM needs to anticipate the future aspects to develop programs and it is not necessary
that anticipation and future be the same (Saha and et.al., 2022). This may create negative impact
on growth of organization.
Expensive and time-consuming:
Implementation of SHRM increases the cost to company and it is a time-consuming process.

Resistance from employees:
Implementation of SHRM can be resisted by employees as it is the nature of people to
resist new changes in organization.
SHRM is a very good development opportunity for employees. They would learn new
skills and competencies which would be beneficial for the success of organization.
The proposal of HR planning process and methodology selected to assess current staffing
conditions
The HR planning process helps Tesco to ensure that they have right amount and right type of
people at right time, at right place and are doing work in which they are expert in.
Steps involved in HRP process:
Analysing business policies and objectives:
The first step is to analyse business objectives and policies and then design human
resource planning objectives and policies in direction with the firms goals. In this step
management creates policies:
 Sources of recruitment i.e. internal or external
 Selection procedure, training and development programs
 Reviewing and restructuring of existing job roles
 Adoption of downsizing and right-sizing to remain competitive
 Automation of processes and their impact
To design a proper HR planning process in Tesco HRM of Tesco needs to analyse the
business objectives and policies (Okolie, 2020). As Tesco is a multinational retailer company
there are diverse employees in the company so HRM needs to make proper recruitment,
selection, training and development plan.
Study existing manpower inventories:
Manager needs to study the existing workforce skills and capabilities to ensure that they
can meet the future requirements. The manager needs to analyse the strength and weakness of
organization with regard to number of employees their skills, experiences, position performance
level, etc.

Tesco requires skilled and experienced man force to produced products and render
services that will give customer satisfaction. As it is increasing globally HRM of Tesco needs to
ensure that the current man force can fulfil the future demand.
Forecasting demand and supply:
In this step manager needs to forecast the demand and supply of employees and create a
balance between them.
Demand forecasting
As market environment does not remain same the demand for employees varies from
time to time. Managers need to anticipate the future requirement of workforce. It includes
identification of man force required to perform a particular job (Proposed HRP process, 2022).
As Tesco is expanding there may be requirement of employees.
Supply forecasting
The manager needs to forecast the firm's capability to supply the required man force. It
includes identification of number of employees working in particular job. Manger can procure
employees from within or outside the firm (Ahmad, 2019). If there is no sufficient employees in
company then manager needs to hire them from outside the company. Tesco can identify its
current employees and if there is excess then it can transfer them to another job and if required it
can hire form outside the company.
Forecasting of surplus or shortage
Manager needs to create balance between demand and supply of employees. HRM
creates a gap analysis that gives a complete view of demand and supply in the company. This
analysis will result into deficit or surplus in employees. This will give clear idea about what to be
done in future to manage human resource.
Program implementation and evaluation:
An action plan is formulated and implemented based on gap analysis. Surplus for them
HRM needs to hold hiring, give voluntary retirement options to employees, etc. On the other
hand if there is shortage then hire new employees, retain employees, train existing employees,
etc.
Staffing is an important function in an organization through which requirement of
employees are fulfilled. The responsibility of HRM is to identify the nature of job in organization

and then figure out the number of manpower required. After analysing the requirement manager
needs to determine the qualification, skills and experience required to fill the position.
Steps involved assess staffing condition in Tesco:
Manpower requirement:
The first step is to determine the requirement of human resource for a particular job and
skills, qualification and experience required for that job. HRM in Tesco needs to forecast the
demand and supply of manpower and then do gap analysis to know the deficit or surplus of
manpower in the company.
Recruitment:
Recruitment refers to attracting skilled and potential candidates to apply for vacancies.
HRM of Tesco first look into internal talents to fill vacancy (Karim and et.al., 2021). This would
motivate existing employees to grow and shape their future. Then company advertises job
vacancy through different sources to attract people from outside organization.
Selection:
This is screening step in which suitable applicants are selected and appointed. Tesco
select candidates through different selection processes to ensure that skilled and potential
employees are appointed in the company. HRM of Tesco will look into each CV of candidates
and then select the qualified CV for next level of selection process. After screening the selected
candidates are given various tasks including problem solving assessment and team working
activities (Doll, 2018).
Orientation and placement:
The appointed candidates in Tesco are made familiar about the work environment and
policies of company through orientation. Then placement takes place by putting right person in
right place.
Training and development:
Training is given to new and existing employees in Tesco to develop new skills which
would help them in their career.
Performance linked compensation:
Employees in Tesco are given adequate compensation for the work done by them. HRM
of Tesco frequently evaluate the performance of employees and give rewards and incentives
according to their performance. This motivates employees to increase their performance.

Promotion and transfer:
Employees of Tesco are given non monetary incentives by shifting them to higher job
demanding bigger responsibilities i.e. promotion or shifting them from one job to another within
the organization i.e. transferring.
Internal and external factors for forecasting future staffing needs, supply and demand issues in
current market and recommendations for talent management in HRM
Internal and external factors that are affecting forecast of future staffing needs are,
Internal factors include:
Promotion policies
Staffing is affected by the promotion policies of organization. Organization which have
good and effective promotion policies with prospect to career growth and development would
attract efficient and potential employees. This would decrease employee turnover ratio.
Future growth plans
Staffing will be affected by future growth plan of organization. Organization needs to
grow to be able to require talented and skilled employees. Organization needs to select experts
and give them continuous training and development (Song, Wang and Sun, 2018).
Technology used
Advancement in technology result in requirement of skilled employees and continuous
training and development of them to update technical knowledge of staff.
Retirement or resignation
Staffing can be affected by retirement or resignation of employees as organization needs
to find out replacement for these employees so that position may be filled.
Improvement in productivity
To improve productivity organization requires skilled employees. Productivity depends
upon the demand of product and if there is demand of product then there will be requirement of
skilled employees.
External factors include:
Government policies
Staffing of organization is affected by the government policies like labour law. The
organization has to comply with the rules and regulations enforced by government. It may
include social equality and upliftment policies, minimum wages act, child labour, etc.

Pressure from socio- political parties
Staffing is affected by these parties as they put pressure on organization to grant jobs
only to local people.
Competition
There is a huge demand for highly qualified and experienced employees. This has
resulted in competition among organizations to attract and hire efficient employees. To attract
potential employee's organization offers effective salaries and other benefits.
Required education
There higher education qualification requirement also affects the staffing. Nowadays
every organization requires a skilled and well-educated employees to cope up with the advanced
technology.
Supply and demand issues of employees in current market
Similar to the market of goods and service, job market also follows the demand and
supply mechanism. When the quantity of demand is equal to the work force available then
market reaches its equilibrium and wages can be determined.
There are many issues that are affecting the demand and supply of employees in current market.
Globalization
Globalization has created an increase in demand for skilled and potential employees
which has increased competition among organization as there is limited supply of employees in
the market. This has increased the responsibility of HRM of organization to retain and train their
existing employees.
Technology
Advancement in technology has increased the demand for skilled employees and this has
decreased the demand for unskilled employees in the market. Due to this the supply of unskilled
labours are more as compared to skilled labour (Sizova, Bakaev and Khvorostov, 2021). This has
unbalanced the demand and supply of employees in market.
Population
As there is an increase in population leading to increase in supply of employees in
comparison to demand for them. This imbalance in market increases the rate of unemployment in
the country.
Competition

As there is increase in competition and increase in demand for skilled and potential
employees different organization offers effective salaries and other benefits to attract employees.
This has increased the employee turnover ratio as organization finds it difficult to hire another
skilled and potential employ.
This imbalance in demand and supply of employees in market has affected the HR
planning process. The responsibilities of HRM has been increased has HRM has to hire skilled
and potential employees and have to ensure the retention of employees. This has the cost to
company as they have to offer effective salaries and other benefits to employees and has to
continuously organize training and development programs to develop skills in employees and
make them updated about the latest technologies.
Talent development recommendation which will form part of HRM
Talent development means the efforts made to identify, train and advance the potential
and skills of employees within an organization. It helps organization to build and retain skilled
workforce who will play important role in success of business. This would also help employees
to advance their career (Valiente, Zancajo and Jacovkis, 2020). Talent development can be done
formally or informally by provides on job opportunities to employees to learn new skills.
Individualized growth plan
Organization that wishes to retain and advance their highly potential employees needs to
work with them to build specific and actionable development plans that would be made after
considering strength, weakness and future goal of employees (Son and et.al., 2020). HRM of
Tesco needs to work with their employees to create such kind of action plan to develop skills in
their employees.
Formal internal programs
Organization needs to conduct ongoing training and development programs for their
employees which aims at developing new technical skills or for preparing future leaders to
effectively manage diverse employees. Tesco has diverse workforce from different culture and
background they need to be managed effectively to avoid any conflicts (Karim, Choudhury and
Latif, 2019). This can be done by training and development programs so that they can be made
aware of different cultures and backgrounds. As there is continuous up gradation in technology
employees need to be made updated about all these technologies.

Partnership with external providers
Tesco can provide their high potential employees training and development that can't be
given internally by sending them for external programs. These can be done through online, in
person or both.
Succession planning
A meeting should be conducted between leaders and HR team to identify the leadership
roles and other roles in organization and also discuss the performance of all employees. This
would make HRM understand their workforce and know the gap areas where they need to focus
for developing the potential of employees.
CONCLUSION
Human resource management is a complex field because of the nature of key area to be
focused i.e. people. The role of HRM is not limited to recruitment and selection of right person
for right place. It is the duty of HRM to make the workforce more productive and efficient by
conducting training and development programs and to retain them in organization. A proper
human resource planning is made to effectively manage human resources. In this complex
environment it is very essential for organization to implement strategic human resource
management to ensure that HR requirements match with business strategies. Tesco needs to
organize talent development programs to ensure retention of their potential employees and
continuous development of their technical skills so that they can contribute towards the success
of business.

REFERENCES
Books and Journals
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development on employees’ performance: An analysis of quantitative data. Noble
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Karman, A., 2020. Understanding sustainable human resource management–organizational value
linkages: The strength of the SHRM system. Human Systems Management. 39(1).
pp.51-68.
Malik, E., Baig, S. A. and Manzoor, U., 2020. Effect of HR practices on employee retention: The
role of perceived supervisor support. Journal of Public Value and Administrative
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Okolie, U. C., 2020. The advantage of integrating human resource planning with corporate
planning. Annals of Spiru Haret University. Economic Series. 20(1). pp.25-50.
Saha and et.al., 2022. The influence of SHRM and organizational agility: do they really boost
organizational performance?. In Research Anthology on Human Resource Practices for
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Sizova, I., Bakaev, M. and Khvorostov, V., 2021, June. Labor Demand and Supply Adaptation to
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Song, M., Wang, S. and Sun, J., 2018. Environmental regulations, staff quality, green
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Online

Proposed HRP process, 2022. [Online]. Available through:
<https://www.smartsheet.com/human-resources-planning-process>
Best practices, 2021. [Online]. Available through: <https://empxtrack.com/blog/top-10-hr-best-
practices/>