Strategic Approach to HRM at Tesco

This assignment explores the strategic approach to HRM at Tesco, including Guest's model of HRM, differences between Storey's definitions of HRM, personnel and IR practices, and the use of flexible working practices. It also discusses the implications for line managers and employees and the impact of changes in the labor market on flexible working practices.

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Contents
Introduction.............................................................................................................................................................2
Task 1.......................................................................................................................................................................2
1.1. Explain Guest’s model of HRM as applied to the organisation of your choice............................................2
1.2. Compare the differences between Storey’s definitions of HRM, personnel and IR practices.....................2
1.3 Assess the implications for line managers and employees of developing a strategic approach to HRM.....3
Task 2.......................................................................................................................................................................4
2.1 Explain how a model of flexibility might be applied.....................................................................................4
2.2 Types of flexibility..........................................................................................................................................5
2.3 Assess the use of flexible working practices from both the employee and the employer perspective.......6
2.4 Discuss the impact that changes in the labour market have had on flexible working practices..................6
Task 3.......................................................................................................................................................................6
3.1 Explain the forms of discrimination that can take place in the workplace using examples of recent
discrimination cases which has made the news..................................................................................................6
3.2 Equal opportunities legislation practical implications...................................................................................7
3.3 Managing diversity and equal opportunities approaches compared...........................................................7
Task 4.......................................................................................................................................................................8
4.1 Comparison of performance management methods....................................................................................8
4.2 Assess the approaches used to managing employee welfare in your organization.....................................8
4.3 Implications of health and safety legislation on human resource practices.................................................9
4.4 Impact of one topical issue on human resource practices............................................................................9
Conclusion................................................................................................................................................................9
References...............................................................................................................................................................9

Introduction
Through this assignment, the purpose which will be served is to look into various theoretical aspects in
addition to practical activities for the modern day human resource management which is considered as a very
important source of competitive advantage for the modern day business entities. Apart from the HRM
practices various topical legislations and issues related to HRM will also be looked into through this report. In
view of the fact that HRM practices are needed to be discussed in conjunction with the theoretical
perspectives, the paper will assess the various factors related to the same
Task 1
1.1. Explain Guest’s model of HRM as applied to the organisation of your choice
A model of strategic human resource management has been given by Guest (1987) that looks into the basics
of the same. The emphasis of this model is on the commitment from and towards the employees. This is the
factor which differentiates this model from the traditional models of performance management which had
emphasis on the employees’ compliance to the organizational rules (Dessler, 2012). HRM is also considered to
be a very important part of the strategic management of the organization that aims to develop as well as
maintain the motivation and commitment of the employees for the organizational objective achievement. The
model also emphasises on serving the needs of the individual employees apart from managing the entire
workforce’s overall requirements. This allows the companies to develop inherent power in HR without losing
the flexibility in the human resource processes. This model is dissimilar to PM model and utilizes strategic
HRM practices for better overall organizational performances.
The 6 dimensions which are mentioned in the model of HRM by Guest are as following:
 Human resource management strategy,
 Human resource management practices,
 Human resource management outcomes,
 Behaviour outcomes,
 Performance outcomes and
 Financial outcomes.
The company which will be used for the purpose of the discussion for this report is Tesco which is one of the
major retail companies in the UK. Tesco has a strategic human resource management model implemented
within the company which has helped the HRM department of the company to empower the employees of it
sufficiently. The strategic initiatives of this model are implemented from the phase of selection of the
employees in view of the fact it is important for the company to select workers who are fully aligned with the
organizational and job objectives for the role. Also in spite of being one of the largest companies in its
industry, the company has been able to keep the structure flat and culture open. The employees in this system
also get opportunities for decision making with guidance from the business leaders. The training and coaching
is also given to the employees, which add to the motivational force for them through their professional as well
as personal growth. This also helps in achieving better future career opportunities (Keenoy, T., 1990, pp 370).

1.2. Compare the differences between Storey’s definitions of HRM, personnel and IR practices
Storey’s definitions regarding HRM and PMIR practices help in identifying the differences between these two
theoretical structures. The difference which is most significant is the strategic approach as well as impact
which are there for HRM as compared to PM-IR. HRM has been defined by Storey as the mixture of
description, prescription and logical deduction. As per Storey there are two types of HRM which are:
1. Hard HRM: This is for measuring and controlling the employee performance
2. Soft HRM: This is for motivating and empowering the employees
For comparing the differences between these concepts the organizations which will be used are Tesco and
Wal-Mart which are two giants in the UK retail supermarket industry. Following is the table which shows the
difference in the same (Sims, 2006):
Dimension PM-IR (as practiced in Wal-Mart) HRM (as practiced in Tesco)
Rules, Roles and
Responsibility
Through the usage of PM-IR in Wal-Mart
the company has a set of very strongly
defined guidelines which govern the
responsibilities and roles of various workers
As HRM is practiced in Tesco, in spite of the
various guidelines and rules, the employees are
given a lot of freedom in term of their conducts
as well as enhancement and rotation of jobs.
Management
Intention &
Actions
The management of Wal-Mart takes all the
employee welfare related decisions keeping
the profit making approach solely in the
mind
The leadership teams of Tesco shows a lot of
respect for the welfare of the employee as a
standalone concept and allocate a lot of
resources for the same in view of the fact the
company considers the satisfaction of the
employees as a key performance metric.
Flow of
Communication
The company boasts of a very rigid and
vertically structured organizational
hierarchy with the help of strict controls
exerted by the line managers which takes
place by limited communication
In Tesco, as a result of the strategic HRM
practices, the organizational structure has been
kept as flat and horizontal as possible. This also
facilitates quick and smooth communication flow
that helps in knowledge sharing for improved
processes for decision making
Leadership
Style
The system uses a leadership which is more
autocratic than democratic with very low
empowerment for the employees
In Tesco, the strategic HRM leads to skill
development of the employees, training of them
and sufficient empowerment for them which
helps them in their role of decision making.
1.3 Assess the implications for line managers and employees of developing a strategic approach to HRM
The strategic approach development for HRM the line managers and the workers of Tesco have been at the
receiving end of the various advantages which has helped in sorting out professional issues as well as
management of work life balance. This leads to sufficient employee empowerment that starts from the
process of selection and recruitment which considers only the workers who are aligned to Tesco’s mission and
vision as well as the role for which the selection is being done. Employees get opportunities decision making

related to operational or strategic roles. The training and coaching is also given to the employees, which add
to the motivational force for them through their professional as well as personal growth. This also helps in
achieving better future career opportunities (Keenoy, T., 1990, pp 370).
These help in improving the following factors
 Engagement with the employees,
 Motivation for the employees,
 Empowerment for the employees (Adebayo., 2011, pp 80).
Strategic HRM for Tesco also helps the line managers as they can influence the workers productivity without
using coercive power that helps the entire organisation’s performance. Line managers are also helped through
the following:
 Better decision making from the empowered employees for handling of the customers (Mathis, 2008).
 Continuous employee mentoring by the line managers
 Identification and management of talented employees and extracting better performance by the line
managers.
In the organizational system of Tesco the line managers supervise the team members and focus on their
strengths as well as encourage open communications. Discipline is also one of the major factors which are put
into effect by the line managers which are always supported by policies by the HRM. The role of line managers
for observing rules influence the performance and behaviours of the employee.
Task 2
2.1 Explain how a model of flexibility might be applied
Model of flexibility within workplace is a combination of a variety of arrangements which help in making the
working conditions more suitable for the workers. Various models of flexibility exist which can be broadly of 2
categories.
 First one has the objective of managing the working hours
 Second one has the objective of managing the patterns of work including split shifts or job sharing etc.
In Tesco a model of flexibility can be developed through modifying the HRM guidelines for it. The model given
by Atkinson and Meager for ‘flexible firm’ identifies the policies to be followed ro achievement of flexibility.
Following is the model that can be used for Sainsbury:

As per this model the company can look into implementation of lesser working hours or part time working as
well as completion of total hours of work within a limited number of days etc. need to be present.
Overtime allowances as well as structured pay also needs to be implemented through the following steps
(Fuqua, 1993):
 Developing a clearly comprehensible process for the implementation of the same.
 Development of knowledge for the same among workers as well as the provisions of this arrangement.
 Rearrangement of the culture of the organisation to suit the arrangements of flexible working.
 Implementing mechanisms for observing the arrangement and assessing the same for evaluation of
this arrangement for flexible working.
2.2 Types of flexibility
There are various types of flexibility which can be observed within the organisation. They include numerical
flexibility which relates to managers being capable of changing the number of the working staff and adjusting
it when necessary. During the holidays, supermarkets such as Tesco have a lot of customers as opposed to
other times when they do not experience an influx of customers. During that time, the managers should be
flexible to increase the number of employees but employ them under contract so as to let them go when the
season is over.
Functional flexibility is yet another form of organisational flexibility. It implies that managers should encourage
their employees to learn how to do different tasks within the organisation. Doing so means that in case a staff
member is absent, someone else can do their job without the organisation having to make a loss. For instance,
if the person that operates the CCTV cameras is absent, a gap is left that is necessary to fill since it is crucial for
the organisation to keep watch of what is happening. Another employee should have skills to operate them in
absentia of the other employee.
Temporary flexibility, on the other hand, indicates that managers should have flexible working hours for their
employees. Doing so allows them to work according to their personal schedules which in return increases
productivity. For instance, they could allow employees to choose their best working time and from that
develop a working schedule which ensures that the organisation is fully staffed at all times.

The other type of flexibility is financial flexibility and it implies that mangers should have the capability to
adjust payment method for individuals. For instance, they could process payment depending on the amount of
work done, depending on performance and productivity of the employees, or even depending on the number of
hours each one of them works.
2.3 Assess the use of flexible working practices from both the employee and the employer perspective
For the reason that flexible working practice lets the companies to retain various well trained, experienced
and skilled employees, this can be very effective and helpful for Tesco. Also it has been seen that a lot of
talented female employees leave their jobs due to commitments in the family and personal space. A
significant part of this segment of people can also be catered by the flexible working practices and cultures. In
view of the fact that these activities not only satisfy the employees but also motivate them and increase the
front line staffs’ productivities, Tesco will benefit from the same immensely. The crunch of good workers in the
retail industry is a well known factor and this can solve the problem for Tesco (Adebayo, 2011).
On the other hand as far as the employees are concerned, they are immensely benefited through the
enhanced balance in the work and personal which brings happiness and satisfaction to their lives and works.
They can also give themselves more time for the personal and professional development as they get relaxed
work life balance (Fuqua, 1996). Hence a confirmation can be given that for Tesco as well as other companies,
the practices for flexible working are advantageous for the employer as well as the employees.
2.4 Discuss the impact that changes in the labour market have had on flexible working practices
Labour market can be deified as the aggregation of various available employees for the purpose of selection
by any organization. Due to the increasing propensity of quick change of jobs as part of the labour market
dynamics, the companies like Tesco need to ensure that they add something valuable to the employees for
retaining them. One of such conditions is the practices of flexible working for workers which can cater to the
requirements of the employees as well as organisation (Davidson, 2006). There are various effects of changes
in the demographic of the labour markets also on the flexible working practices. As a result of the female
employees and their importance for the workforce the flexible working practices have grown in significance.
The flexible work arrangement will continue to be affected by these factors with more number of more
number of sole-parent families, women taking up paid work and with the extension of the retirement ages as
a result of skill shortages.
The arrangement of flexible working needs to be implemented by Tesco as a result of (Keenoy, 1990):
 Increased weight age towards employee opinion for retirement plans.
 Support for part time working arrangement as part of the flexible retirement arrangements.
 At least 6 months of notice period previous to the termination of the employee contracts.
Few of the companies also wasted a significant amount of resources for needless execution of arrangements
for flexible working as a result of the pressure felt from the labour market (Davidson, 2006).
Task 3
3.1 Explain the forms of discrimination that can take place in the workplace using examples of recent
discrimination cases which has made the news
Employment discrimination happens due to multiple reasons leading to differential roles or rewards and
recognitions as well as remunerations. As seen in the recent workplace discrimination cases, some of the most
recognizable forms of the same are as following (Keenoy, 1990):

 Discrimination as a result individual’s race
 Discrimination as a result of the gender of the individuals
 Discrimination as a result of the individual’s religious views/religion
 Discrimination as a result of the disability of the individuals
 Discrimination as a result of the individual’s sexual orientation
 Discrimination as a result of the age of the individuals
Due to the multinational nature of Tesco, the chance of various race or religious views related discrimination is
high which are essentially form of demographic characteristic based discriminations (Brewster, 2005).
Examples have been seen in carious recent cases related to Microsoft in which, in 2015, a group of African-
American and Hispanic employees working at Virginia franchises of McDonald’s, claimed that the franchisor as
well as the franchisee was committing acts of discrimination basis race and gender at the restaurants. It was
confirmed that these people were harassed as well as wrongfully terminated from their jobs. It was confirmed
that these people were harassed as well as wrongfully terminated from their jobs. The reasons which were
cited by the employees against the company as the possible reason for the discrimination they faced was the
race. Apart from this, there are also overwhelming number of recent evidences of discrimination basis sexual
orientation of the employees.
3.2 Equal opportunities legislation practical implications
Companies are required to avoid discrimination and thus provide equal employment opportunities to all
community members. They should also provide employees equal training other than favouring some over
others. Some of the practical implications of equal opportunities legislation include poor performance among
members who have been discriminated against since they feel side-lined and possible loose of operation
license. Loss of customers is yet another implication. Some customers hate discrimination and when they hear
that Tesco is discriminating against employees for things like age, race, skin colour, they may be move to
competitors. Organizations must also respect religion, Equality Act of 2010, and not sack employees without
valid reasons.
Positive implications include great communication and collaboration among employees in organisations where
legislature has been implemented. They do not feel relegated while others are favoured thus good working
relationship and environment. This increases employee productivity and allows attainment of company
objectives. Moreover, people with disability gets opportunities and they bring with them the special skills and
talents which they possess. Those with disabilities have great skills which could be very useful to the
organisation and its development.
3.3 Managing diversity and equal opportunities approaches compared
Employees are different from each other in terms of things like age, race, skin colour, disability, and even skills
that each one possesses. Managing diversity refers to acknowledging the differences that exists among
employees. Managers should capitalize on these diversity as it may be beneficial to the company. For instance,
an employee may be very good at public speaking and thus have a great voice to use in advertising to which
many listen. Other than employing equal opportunities legislation and failing to allocate such as job unless
fairly winning it from others, the company should take advantage of such diversity ad allocate the employee
this job. Doing so benefits the organisation and thus secures jobs for all employees since successful
advertisement reflects of company and increases it lifetime.
Equal opportunities approach, on the other hand, does not advocate recognising the diversity among
employees. Rather, it focusses on treating all employees the same. The organisation thus distributes jobs fairly

and it does not differentiate them according to the skills and unique talents individuals possess. This is
beneficial to employees as they gain equal opportunities at everything within the organisation. However, it
might be disadvantageous to employers. Other than utilizing the unique personal abilities some employees
have, they are limited to offering equal opportunities to all. As a result, they may not manage to utilise these
employees to benefit the organisation.
Task 4
4.1 Comparison of performance management methods
The discussion on performance management methods is based on Tesco.
There are various methods which human resource managers can use for performance management of
employee. The first is management by objectives which allows managers to rate performance of employees
depending on the achieved objectives. The human resource manager first collaborates with the employees to
make the objectives which they ought to achieve and which are SMART (specific, measurable, attainable,
relevant, and eventually timely). They then rate their performance depending on how they have attained the
set objectives. Compared to other methods, it is easy since managers just check if all objectives are attained or
not.
360-degree feedback is yet another performance management method,. It entails managing performance
based on all angles of the employee such as technical capabilities, character, and behaviour. Compared to
other methods, it provides conclusive performance evaluation thus giving managers right information on how
to manage performance of individual employees. It is also effective (Dunne, 2011).
Rating scale is the other performance management method. It involves managers and employees deciding
what grading scale should be used to evaluate their performance and sticking to it. It allows comparison for
people doing similar jobs unlike other methods. It is also faster and useful especially in large organisations
which have many different people performing the same duties. It also promotes equality among employees
since they are assessed based on the same grading scale.
4.2 Assess the approaches used to managing employee welfare in your organization
The factors which are covered within the entire process of employee welfare include the following factors
offered to employees by the employer:
 A range of services,
 A variety of benefits and
 An assortment of facilities.
Tesco has employee welfare and benefits mechanism which start with the normal benefits and perks like
healthcare insurance, life risk insurance, as well as childcare benefits for the workers of the company who are
eligible. Tesco also has an employee helpline which extends assistance for the employees as well as their
families in terms of a range of local as well as state assistance programs.
Short and long leaves apart from the statutory holidays are also given to the employees one they are eligible
for the same after spending a specific amount of time with Tesco. Sabbaticals for pursuing higher education
are also given to the eligible employees which effectively are a longer leave without the pay and a
commitment of resuming the job after the course (Lebas, 1995). Some other factors include gym

memberships, shift allowances, overtime pays, free transportation etc. These approaches for managing
welfare of the employees are quite employee friendly and hence effective.
4.3 Implications of health and safety legislation on human resource practices
Health and safety legislation entails ensuring that the working environment is safe for employees and also that
they work in health conditions. Some of the implications of this legislation is extra cost for the company.
Organizations have to implement and follow the legislation guidelines. This involves extra training costs for
employees for instance on how to manage or put out fire and how to offer first aid. Human resource is
affected since they have to ensure employees are well trained and equipped to handle emergencies. They
must also ensure there are departments which are well equipped with the necessary equipment and staff to
ensure safety and wellbeing of all employees in accordance with the legislation.
Normally, a human resource manager can sack employees who fail to attend job. However, in cases where
employees claim that they feared for their life since the working conditions at work were not healthy ad safe,
such an employee has a right to retain their job and get paid for days not worked. This is one of the impacts of
the safety and health legislation on human resource practices. It affects HR managers being in charge of
employees and deciding how work should be done. Rather, it dictates to HR managers what they ought to do
so as to ensure that employees work in a safe and healthy environment. Failure to adhere to this legislation
may result in cancellation of wok license as work places ought to be health and safe for all who work in them.
4.4 Impact of one topical issue on human resource practices
Employee retention is one topical issue that have an impact on human resource practices. It has remained a
challenge for HR manager to effectively maintain as many employees as possible. This especially applies to
employees with great technical expertise and who are very good at their work. Such employees are not easy
to maintain. This is mainly because different companies offer them job opportunities every now and then.
Such companies also recognize the uniqueness of such employees and thus seek to have them working for
them instead.
However, HR managers should do their best to maintain these good employees once they come across them.
For instance, they should realize that offering more money is not enough for employees to remain in the
company. Some employees could even move from an organization where they are highly paid to one where
the pay is slightly lower due to differences in HR management. Other than focusing of more money, HR
managers should focus on providing a suitable working environment which is healthy and safe for all
employees. They should also focus on being the best leaders since some employees emulate their HR
managers and feel comfortable working with their role models. They should also ensure equal opportunities
distribution among employees with same capabilities other than favoring some while neglecting others.
Conclusion
In this paper, the purpose which has been served is to look into various theoretical aspects in addition to
practical activities for the modern day human resource management which is considered as a very important
source of competitive advantage for the modern day business entities. Apart from the HRM practices various
topical legislations and issues related to HRM has also been looked into through this report. In view of the fact
that HRM practices are needed to be discussed in conjunction with the theoretical perspectives, the paper has
been able to assess the various factors related to the same.
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