Strategic Approach to HRM at Tesco

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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