Impact of HR Strategies on Firm Value

This document discusses the value created by firms using HR strategies, the impact of regional and national culture on HRM practices, different models of employment, and the differences between HRM and personnel management.

Human Resource Management

Table of content
INTRODUCTION...................................................................................................2
A) Value created by firm using HR strategies.............................................................................3
B) Impact of regional and national culture on the practices of HRM.........................................4
C Organisations model of employment.......................................................................................5
D storey' 27 point of difference between HRM and personnel management..............................5
E. Opinion on the firing and hiring that can be considered as vital and significant of local
culture..........................................................................................................................................7
F. Describe the several differences within terms of employment law when international HRM
changes within local business system..........................................................................................8
G Suggestions and recommendation regarding at certain practises to ensure organisational
performance.................................................................................................................................9
Recommendation...................................................................................................10
Conclusion..............................................................................................................10
REFERENCES......................................................................................................12

INTRODUCTION
Human resource management is going to take care of the internal factors so that there is
going to be higher productivity and operations so that the company can have higher sales and
economic stability. HRM has to take care of the employees and the internal contributions of the
company for being able to achieve the targets and goals of the organization.HRM are having a
lot of laws and policies which have to be followed and are going to be discussed in detail in the
further report.
Tesco is operating in the market since 1919 which is 101 years and the organization
belongs from the public limited company and retailing industry. The headquarters of the
company is in England, United Kingdom and the key people of the organization are Jack Cohen,
John Allan and Ken Murphy (Tweedie and et.al., 2019). The company is having a net income of
1.320 billion as of 2019 and a operating income of 2.206 billion as of the same year/ There are
450,000 employees working in the organization which have to be controlled and monitored from
time to time.
HRM has to be very good for a large organization since the competition in the market is
increasing and it is important for the organization to be able to compete with them effectively.
There is a lot of investment which large organizations make in the market to be able to expand
themselves which is going to make the sales and value of the company increase in the market
which is going to be very good for the company. The hiring and firing of the employees is in the
hands of HRM and training them from time to time so that they can match the expectations of the
organization is very important which is going to be discussed in the further report.
A) Value created by firm using HR strategies
There are a lot of strategies which are present in the market which the HRM of an
organization can follow which are going to be helpful for the organizations long run in the
market (Tweedie and et.al., 2019). Creating new methods to solve situations is a very important
experience and knowledge which needs to be present in the HRM of the company in order to be
able to operate and function effectively (Kehoe and Collins, 2017). Tesco has been able to
operate effectively and efficiently in the market after HRM practices and strategies since the
changes and communication is even more effective making the productivity and operations be

higher and that is a very good factor for the company’s long run in the market. Strategies have to
be implemented effectively and there has to be fair treatment as well which has to be present in
the company so that there are going to be higher performance which would be present in the
company which is a great factor for the organization to have (Kehoe and Collins, 2017).
 Motivation
There are a lot of rewards, incentives, etc which are being given to the employees of
Tesco from time to time so that they feel motivated in the company. Tesco gets in a lot of
changes be it technological or techniques to be able to compete effectively in the market which
has to be well balanced in the market which is going to help the company be able to operate
effectively ((Kehoe and Collins, 2017). Employees have to give in their best since the right
employees are being hired by the HR department of the company and it is in the hands of the HR
that they are being motivated and their problems are being solved on time so that there is going
to be higher interaction and involvement of them in the organization (Ogbonnaya and
Messersmith, 2019). The company has been able to match the demands and standards which the
organization has created for themselves in the market which is a great factor for the company to
have for themselves in the market and they would be able to compete in the future as well
effectively and smoothly. For example- by giving incentives and rewards Tesco employee
retention rate is high (Tweedie and et.al., 2019).
B) Impact of regional and national culture on the practices of HRM
From location to location the employees belief’s values and culture is going to differ and
the HR department will have to respect that factor and so will the practices of the HRM is going
to changes (Cooke and et.al., 2020). It is important for the HRM to make sure that all the
employees of the company are giving in their best so that the company will be able to benefit
from it which is a very important factor Horsemeat is found in tesco burgers, 2019). Tesco is
having high demand and standards for the brand value in the market which is why it is even more
important for the company to be able to operate effectively which is going to be very helpful for
the organizations long run (Cooke and et.al., 2020). Tesco has to make sure that they are
providing the employees with the right environment to be able to perform effectively and
efficiently in the market so that there are going to be higher functioning which is going to be

present (Tweedie and et.al., 2019). There are going to be set policies and laws which are going to
be followed in the company and they have to be well maintained so that the organization will be
able to operate effectively (Elrehail and et.al., 2019).
 Equality and rights
Regionally and nationally the HRM is not going to make a lot of difference but it is very
important that the employees of the company are going to feel accepted and comfortable in the
environment in which they are working so that the company will be able to give in their best in
the company (Tweedie and et.al., 2019). Regional workforce is going to have different way of
working which is that they would like to have more benefits like extra salary and incentives
(Kehoe and Collins, 2017). But nationally or urban area’s workforce are going to want more
benefits in terms of promotions and be able to get higher reputation in the business. Everyone
has set targets for themselves which needs to be present in the company so that they can take out
the best from the employees (Elrehail and et.al., 2019). For example- implementation of Equality
act by tesco in HRM.
C Organisations model of employment
Organisation model of employment has five parts as it relied on candidate themselves
that what type of employment they choose according to their requirements and have time. Each
and every firm imply various type of employment as Tesco gives part time, full time, contracts
and many more (Kehoe and Collins, 2017).
Full time and part time- It is considered as a work done on the regular basis for average of 38
hours per week and staff members actual working hour are agreed on the contracts made by the
HR and signed by employees (Budhwar. and Mellahi. 2016). These employees are entitled to the
friendly such as annual, personal, long services, sick leaves and many more. While on the
contrast of these the part time employees usually work less as compare to the full time workers
and get paid according to their working hours. For example- in tesco there are both full and part
time staff working in logistics department (employees (Budhwar. and Mellahi. 2016).
Fixed term and contract employees

Tesco can imply on someone for the contract or fixed terms employees for some
specified job roles. They work in a firm for sometimes or when the contract ends they leave that
particular workplace and Join another one. These types of employees get the salary after the
completion of the project (Zhu. and Warner, 2019).
Casual employees
These are the employees that are engaged on the irregular basis as per the Tesco’s
demands. Here there are no obligation to accept offers of work and purchase them and no
expectations on work going (employees (Budhwar. and Mellahi. 2016). Such types of employers
are paid hourly on their work basis. Within some situations , casual workers can also be eligible
for the long service leave as if they are employed for around twelve months off time (employees
(Budhwar. and Mellahi. 2016).
D storey' 27 point of difference between HRM and personnel management
In an organization there are various Department and functions. Similarly HRM and
personnel management our functions in Tesco, They both differ from one another as functions
performed in it very. Personnel management is record keeping an administrative function. Here,
management aim to maintain fair working within organization. Also they focus on managing
personal activities for Each Department in effective way (Wilton, 2016).
Where is HRM is concerned with managing and handling of overall workforce within an
organization. it performs various functions such as recruitment selection training etc. besides
that, planning and organizing of staff is also done in HRM. therefore these two differ from one
another to great extent (Wilton, 2016). Similarly, Storey 27 points are use to find out difference
between these both. it is as follows
Storey’ 27 point
Dimension Personnel management HRM
contract In this there is Careful written
contracts
Here, HRM aims to go behind the
contracts within business.
rules It forms clear rules HR manager make rules and
regulations
(Nieves. and Quintana, 2018).

Guide to management action Procedures It depends on organization needs
behavior referent Norms mission and values
managerial task responsible to monitor the task
(Wilton, 2016)
Nurture of employees
Nature in the relation Plurality Unitarist
Conflict Institutional emphasis
Key relations Management customers
initiative Peace Integrated
corporate plan Marginal Central
speed of decision Slow Quick
management role Transactional (Zhu. and Warner,
2019)
Transformational
Key manager Personnel HR manager
communication There is indirect communication There is direct communication
Standardisation High Low
Price in the management skill Negotiation facility provider
selection Separate, managerial task integrated key task
Pay It is based on job evaluation It is based on performance
conditions separately negotiated Harmonium (Zhu. and Warner,
2019).
Labour management collective bargaining contracts individual contracts
Russian relationship with steward They are regulated They are marginalized
Job category an grades Few More
Communication floor directed Increase in flow
job design Labour division Teamwork
training and development control access Employees
Foci Of attention for intervention Personal Wide range of culture, structural
strategies
Thus, it is found that Tesco is using HRM practices where focus is on team work and
nurture of staff. they are given training to improve their skills. So, it has led to attaining of goals
and objectives. for example- In tesco conflict is solved by Personnel management (Zhu. and
Warner, 2019).

E. Opinion on the firing and hiring that can be considered as vital and significant of local culture.
During the hiring of the staff members within Tesco it is vital to focuses on the local
culture so that undertake in general (Armstrong, 2019). During the Hiring of the HR manager of
the firm sees the local culture as it can creates a problem such as if the culture of the employees
are vary from each other, it will creates a situations within firm for example discrimination ,
conflict situation and many more. It will not only influence the employee’s performance but also
at the same impact the firm as well (Wilton, 2016). Mostly it will impact the reputation of the
organisation within marketplace. It also takes time for the firm in order to create a reputation but
single unethical behaviour also ruin the Indian market’s image. So it makes vital for the HR
managers of Tesco to recruit the local cultural people in order to understand each other as well as
can be comfortable within the firm. It will aids to maintain the firm’s performance as well as
creates a good environment where each and every workers also feeling more comfortable with
one another (Armstrong, 2019). Otherwise these employees face the problems such as
differences, conflicts and language problems and many more. In a similar sense during the
employee’s firing, Human Resource also needs to fulfill all the documentation as well as
provides reasons to the staff members for their firing (Wilton, 2016). As per the UK employment
law it is vital for the firm to have the proper reason if they need to fire any of their staff member
from the firm. Employers cannot fired any staff member without having the strong reasons as
employees can go to the court they have the right to know that why they are fired from their job
(Wilton, 2016). These things are also creates problems for Tesco as well as they have to pay
compensation to the staff members. Employers have also pay two month salary to the workers if
they terminating or firing them without any reason. For example- firing of staff due to passing
comment on racism to another employee (Armstrong, 2019)
F. Describe the several differences within terms of employment law when international HRM
changes within local business system
Employment law within every nation is quite different as employment within Asia ( India) and
U.K is also differ from one another. Firms like Tesco are familiar with UK as Tesco’s origin is
from UK as it creates a difference when firm go international level such as India where the
employment laws are different (James, 2017).
Discrimination protection-

The Right of persons within disability- That bar discrimination on the basis of disability status
of workers.
The benefit act of maternity 1961- Also known as maternity benefit act bar the discrimination
relied on female workers and gives for paid maternity leaves.
Protection of Right act 2019- This act bar the discrimination act against transgender people
out coming within an unfair treatment at workplaces or termination or denial from employment.
Women’s sexual Harassment at workplace act known as Prevention, Prohibition and
Redressal act 2013 -bars the women’s sexual harassment within their workplace
(James, 2017).
Statutory employment protection rights ( such as holiday, notice entitlements, whistle
bowing, parental and maternity leave)-
 Notice entitlements- According to ID prescribes for Statutory Notice and
Retrenchment Compensation for staff members who can qualify as an workman. As the
state specific shops as well as Establishments Acts ( S&E) also prescribes for the
minimum notice period (de Brito. and de Oliveira, 2016).
 Leave entitlements- The relevant S&E acts gives for minimum leave entitlements for
staff members within commercial establishments and shops. Leave is also classified as
casual leave, sick leave, privileged leave (Fei. and Aun., 2019).
Maternity and Paternity leave- According to the maternity Benefit act, every female who has
completed 80 days of service alongside employer paid leaves ( maternity) of 26 weeks of that is
more eight weeks that can be preceded the expected delivery dates. Thus within the case of a
female with two or more surviving children. For example- In UK women are given maternity
leave of up to 52 weeks (James, 2017)..
 Employee’s provident fund- The Employee Provident fund as well as Miscellaneous
Provident Act ,1952 (“ EPF act”) is also consider as the welfare legislation that mandates
all workers as well as employers in order to contributes a specified percentage of their
monthly salary i.e currently 12% to the employer provident fund b the staff members

through the Employee Provident Fund . Such things are mandatory within the respect of
the staff members who’s earning are less than INR 15,000 (Indian Rupees Fifteen
thousand) and those workers who are earning more than INR 15000 also contributes to
the workers provident fund (Fei. and Aun., 2019).
G Suggestions and recommendation regarding at certain practises to ensure organisational
performance
It is necessary to improve organization performance so that goals and objectives are
achieved in Tesco (James, 2017). so for that there are several recommendations which can be
followed in HRM practices. it is as below
Team working- this practice can be followed by Tesco in which various teams are formed and
goals are assigned to them. this will help in bringing diversified employees together and they will
be able to share their skills and knowledge with one another. Does staff can learn and gain
knowledge and skills to perform task in creative way. this will lead to increase in their
productivity and performance. Besides that it will result in enhancing efficiency of individual
staff. The goals will be accomplished before deadline (Fei. and Aun., 2019). For example- tesco
can form various teams like R&D, market research, etc. and assign them goals. This can appoint
a team leader of each team.
Skill based training -This type of training can be adopted by Tesco in which they provide
training to employees on basis of their skills development. this means that staff will get training
to improve their weak areas and achieve goals (Rawashdeh, 2018).This training program can be
conducted every week so that there is continuous improvement in skills of employees. Therefore
it will lead to professional development of staff and there capabilities will increase. Does they
will be able to do complex task an effective way.. Hence it will create a positive culture within
company. so overall productivity of organization will increase. For example- tesco can conduct
various training sessions to enhance skills of staff.
Reward management –This practice of HRM should be implemented in Tesco so that
employees who perform well are rewarded. In this overall performance of employees is analyzed
and on basis of that reward is given. the HR management must develop a framework of
practicing reward management. it will also encourage employees to put more efforts in achieving

goals and objectives. It will also bring change in culture of company and increasing productivity
of staff. So, by giving rewards to them will be crucial factor in organization performance
(Stewart. and Brown, 2019). For example- tesco can give rewards to those who have performed
well. hence. It will result in motivating others and improving company performance
Therefore these are certain suggestions which can be followed by Tesco in HRM
practice. it will result in bringing positive change in culture and also improving employees as
well as organization performance (Rawashdeh, 2018). Tesco is considered as an Multinational
firm as they are operating their business worldwide and within the nation like India. It is vital for
the firm to understand various cultural differences in India as this nation have already so many
cultures followed as India is a religious nations where people are strict followers of culture as
well as religion ,it is vital to the firm to be aware about the activities that should not be impacted
their religion as well as creates a problem (James, 2017).
Conclusion
From the above it had been concluded that report has examined the value created
through organisation by the HR strategies. It has been analysed that impact of national and
regional culture on the human resource management’s practices. Present Report had been
analysed about several organisational models that can be used through firm so that created their
sales for example sales outsourcing. During the hiring of the staff members HR manager recruit
the local cultural people in order to maintain the firm’s performance as well as creates a good
environment. Also focused on Employment law as India Discrimination protection, The Right of
persons within disability, The benefit act of maternity 1961, Notice entitlements, Leave
entitlements, Employee’s provident fund, Maternity and Paternity leave and many more. Report
also focused on Suggestions and recommendation practices to organizational performance.Team
working will help in bringing diversified employees together and share their skills and
knowledge in enhancing efficiency of individual. Skill based training this type of training can be
adopted by Tesco in which they provide improvises their weak areas and able to do complex task
an effective way.Reward management should be implemented in Tesco and encourage
employees to put more efforts in achieving goals giving rewards.

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Online
Horsemeat is found in tesco burgers, 2019 [Online]available through :
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horseburger-scandal-taught-us-about-investigations/