Benefits and Effectiveness of HRM Practices

The provided assignment focuses on the importance of HRM practices within Tesco, highlighting their benefits for both employees and employers. It covers topics such as employee retention, conflicts resolution, employee satisfaction, and the overall effectiveness of HRM in enhancing productivity and profits. The assignment emphasizes the significance of HRM practices in maintaining a good relationship between employees and the organization, leading to increased job satisfaction and reduced turnover rates.

Human Resource Management
Human resource management is a function of organisation which focuses on wellbeing of every employee of the company. It helps in effective
and better commitment of employees which results in achieving organisational objectives. This present report is in context to TESCO. TESCO is
a British multinational groceries' company. Organisation was found in 1919 by Jack Cohen whose headquarter is in England, United Kingdom.
This present report will majorly focus on Purpose and functions of HRM, applicable to workforce planning and resourcing in TESCO. In
addition to this, strengths and weaknesses of different approaches to recruitment and selection
Will be described in brief. Furthermore, Benefits of different HRM practices within TESCO for both the employer and employee will be
covered in detail. Other than this, Effectiveness of different HRM practices Will be described in brief. Furthermore, Benefits of different HRM
practices within TESCO for both the employer and employee will be covered in detail. Other than this, Effectiveness of different HRM practices
in terms of raising TESCO profits and productivity will also be discussed in concise.

P.1 Purpose and functions of HRM, applicable to workforce planning and
resourcing in TESCO.
Functions of HRM:
Training and development: It is the major function of HRM department in
which they train new joinee for the work they need to perform in the
organisation. In training employee are being told about the organisation,
work ethics, culture and many other things. This is performed by HR of
company so that skills of employees can be enhanced.
Recruitment: For every vacant position in the company people are being
hired by HR of the organisation. In TESCO, HR take interview for the
purpose of hiring and check the knowledge, education and skills of person
that they fit in the vacant position or not.
Conflict management: It is the duty of Human resource department to solve
the conflicts that arises between employees. To perform this function HR
must be good in listening and should listen patiently to both the parties to
conflict. Decisions should be given without being biased.
PURPOSE of HRM:
In every company human resource department plays a very important
role. It is the need of company as the major purpose behind establishing
human resource department is to manage employees of the company. Human
resource department has other purposes also to enhance the skills of
employees by motivating them. In addition to this, TESCO has established
P.2 Explain the strengths and weaknesses of different
approaches to recruitment and selection
There are various approaches to recruitment and
selection, some of them are described below.
External recruitment: In this approach of selection and
recruitment HR tends to hire people from outside the business by
way of personal interviews of the candidates so that final
decision can be taken after knowing the person. This is the most
common approach which is followed by every organisation. In
context to TESCO, this is the basic approach followed in its
recruitment process.
Advantage of External recruitment
 It is an approach where candidates are known personally
through interviews and thus higher qualified people are
hired after knowing them completely.
 Hiring people from outside the company will give
various benefits to the organisation as new talents will
come in the company.
 It will motivate current employees as they will be feeling
competitive due to new and fresh talents in the
organisation.

human resource department also promote the culture of company and Overall
profits of the company will be enhanced due to low retention rate of
employees.
Workforce planning means which ensures that organisation has current and
future growth of employees. It is known by HR of the company as they only
do the entire planning of the workforce.
Disadvantage of External recruitment:
 It is not a cost effective method as it cost high to recruit
people from outside the organisation.
 It is a time taking process as it always take less time to
recruit from within the organisation.
 External recruitment is makes current working
employees that there are fewer chances of promotion.
This will result in lesser productivity and job satisfaction.
 So many people comes together for a single position so it
becomes difficult for HR to know the right one. As many
people have same knowledge so it is not easy to select
one from many.
Internal recruitment: It is a method of recruiting people from
within the company. Current employees will be hired for the
vacant position by way of transfers, shifting from one
department to another or promotions. HR of TESCO follows this
method of recruitment and thus find following advantage and
disadvantage
Advantage of Internal recruitment:
 It will involve less cost than external recruitment as
candidate is hired from within the company (Internal
sources of recruitment, 2017 ). Thus, it is an easy process

than selecting the right one from many new people.
 This process is adopted by HR of TESCO as they already
known about their existing talents and thus, it is easy for
HR to give training in area where their employees lack.
Disadvantage of Internal recruitment:
 Internal recruitment leads to major conflicts between the
employees due to the competition. As every wants to
work on a better position so it can create conflict among
colleagues.
 HR ends up with very limited choice and no new talent is
hired by TESCO. This will stop the organisation from
growing after a time.

L 02
P.3 Benefits of different HRM practices within TESCO for both the employer and employee.
There are many practices that are followed by Human resource department inn a company which provide benefits to employers as well
as employees. Human resource practices are being also carried so that employees can maintain a good relationship with each other. Below some
benefits are shown to employer and employee from the same.
Benefits to employees: There are various benefits to employees, in which some of them are as follows:
Employee retention: Human resource department of the company give training to employees and help them in performing better.This will
motivate employees as performing better makes workers feel good and encouraged towards the work. Hence, retention of employees will be
more towards the company.
Conflicts resolution: Due to the different practices that are followed by human resource department employees get many benefits. As when
Illustration 1: Internal sources of recruitment
(Source: Internal sources of recruitment, 2017)

people work together and share their idea and views regarding anything there are chances that they do not match. Hence, conflicts arises and it is
duty of HR to solve the fights which has raised by employees. So HR of TESCO do their job and thus employees get benefit of solving the
conflicts that has raised between them.
Employee satisfaction: Due to the different practices of HR in the company like solving conflicts, training and development of employees and
skill enhancement etc. This all provides satisfaction to employees in some or the other way. Thus, employee feels satisfied and perform better in
the organisation.
Benefits to Employers:
There are various benefits which are being enjoyed by them, some of them are as follows
 Employers will get trained and skilled employees so it will result in better productivity for the organisation. HR trains workers in such a
way that they get an overall outlet about the company and the work they need to perform in the company. Thus, employers does not have
to teach employees about every small thing.
HRM practices save time of employers because training and development, conflict management, recruitments are performed by HR of TESCO. Thus,
employer’s saves lots of their time and concentrates on the major work they need to perform in the company.
P.4 Effectiveness of different HRM practices in terms of raising TESCO profits and productivity
Different Human resource practices are being carried so that employees can maintain a good relationship with each other as well with
organisation. This will give satisfaction to employees and thus retention rate of TESCO will decrease due to the training and development
programmes carried out by HR of TESCO. Overall profits of the company will be enhanced due to low retention rate of employees.
When employees feel satisfied with their job they perform better thus, effective performance will result in enhancing productivity of the
company. As when an employee leave the company productivity gets affected due to the knowledge of work they have about the organisation.
So it is really important to carry different Human resource practices in the company to increase profits and productivity.