Strategic Human Resource Management: A Case Study of Tesco

This case study examines the strategic human resource management practices of Tesco, a leading multinational grocery retailer. It analyzes the company's history, HR policies, external forces analysis, and human resource functions. The study highlights Tesco's commitment to employee development, training, and maintaining positive employee relations. It also explores the impact of external factors such as political, economic, social, technological, environmental, and legislative forces on Tesco's HR strategies.

STRATEGIC HUMAN RESOURCE MANAGEMENT
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Table of Contents
Introduction......................................................................................................................................3
Company History.............................................................................................................................4
HR POLICIES in Tesco...................................................................................................................5
External forces analysis of TESCO.................................................................................................6
Human resource function of organisation........................................................................................8
Conclusion.....................................................................................................................................10
Recommendations..........................................................................................................................10
Reference list.................................................................................................................................11
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Introduction
Human resource Management can be defined as a procedure, which involves recruitment and
selection of employees of a particular company .It also means providing them with adequate
skills and training so that they can nurture themselves up to the mark of being a employee. It also
involves the function of motivating them and looking after their welfare and to provide justice if
their rights have been violated .It also involve having proper relations with trade unions and
other respected bodies.
The task of Human Resource management is full of versatility, which includes promoting job
analysis, looking after their welfare needs and analyzing the procedure of recruitment.
The company, which has been chosen here to portray the policies, terms and conditions of
Human Resource Management, is Tesco, which is an international company and further wire this
company its human resource policies, external forces analysis and human resource function of
organization will be described.
The role of Human Resource Management is of utmost importance to the company as it plays an
important role in negotiating group benefit package for the employees within a fixed stipulated
budget.
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Company History
Tesco is a multinational groceries and general merchandise retailer. (Angrave, D., et al 2016)It is
the third largest retailer in the world measured by profits and ninth largest retailer in the world.
John Cohen founded Tesco in 1919. The first Tesco shop was opened in 1931 in Burnt oak. Until
1939, Tesco had 100 shops across the country. Tesco is listed on “London stock exchange”.
Moreover, is constituent of “FTSE 100 index”. In 1950s and 1960s, Tesco grew organically,
until it owned more than 800 shops. In 1994, the company took over the super market chain
WILLIAM LOW. This paved a way for Tesco to expand.
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HR POLICIES in Tesco
Human resource policies helped TESCO to take lead in UK supermarkets. It provides clear way
of roles, responsibilities and activates. Tesco emphasizes on the skills of its workforce. It gives
important to learning. Tesco ensures that each employee has opportunity to understand his role.
(Hübner, et all2016.)It ensures that how the work employee affects the big picture of the
business. Its core purpose values business goals and financial aims. For the first time people had
been made core purpose of strategy. Tesco primarily emphasis on 1) primary British company 2)
Towns 3) Low foods 4) selling providers and 5) world-wide market. Currently 3400 TESCO
stores are using 31000 people. In Tesco online shop, 125000 items can be found. Tesco
includes a well documented thinking HRM .It diversifies its enterprise profile. For benefits and
earning TESCO is consistent with current regulations and give wages based on minimum wage
regulation. Tesco as manufacturer fund records is important internationally.
Tesco has widely varied to provide variety services such as personal finance and cell phones.
( Williams, A., et al 2016) In UNITED KINGDOM Tesco, lender store is the most effective
Lender. Supervisors use various ways to handle workers and create total possible HRM strategy.
This multiple stated HRM policy has helped the company to get properly motivated team .For
this reason TESCO is favored by students.
The part of TESCO’S HRM is education and improvement. (Storey, J., 2007)Employees are
trained for corporate. Tesco has improved marketing of its value range .It works in order to
reinforce brand royalty. It makes 70% of team revenue Tesco Company’s main strategy include
being an effective store globally. This is attained by worldwide growth. They do not want to
compromise on item quality. The organization has developed high commitment model, which
offers training and development to all employees. They are first class provider of training to their
employees. This has given scope to the organization to develop in new markets. All their
products are available on the internet 24 hrs a day. Every little help is used to show their
commitment to the customers. Due to the success, this organization is widely reported in
newspapers. They are widely expanding in UK market with opening of their metro stores. To
maintain the reputation employees are given training to focus on their roles. There has been
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increase training of employees within the organization. Employees are receiving more training
than before.HR is not administrative in TESCO they are strategic and proactive.
External forces analysis of TESCO
External forces may be defined as the forces which affects the functioning of an enterprise from
outside its periphery. These forces are not under the control of the enterprise. An enterprise has
to look after the external factors very effectively and efficiently to prosper and grow in the end.
Those enterprises that have no control over their external forces do not prosper in the long run.
TESCO is a multinational retail company. The external factors of TESCO are to be analyzed to
understand its diversity and get an enhanced understanding of its factors. The external factors
can be analyzed through pestle analysis. The PESTEL is an acronym for political factors,
economic factors, social factors, technological factors, environmental factors and legislative
factors.
The different types of external forces of TESCO may be explained as follows-
POLITICAL FACTORS
UK is a destination for FOREIGN DIRECT INVESTMENTS. The political factors of UK are
stable which helps TESCO to expand its business operations and perform its functions
effectively .TESCO operates worldwide, the number of political factors, which greatly influence
its performance are the different rates of taxes (the current rate of corporate tax rate is 18%), the
legislation acts, and the country’s stability. TESCO plays a very major part in creating
employment opportunities through which the demand of its product is also increased.
ECONOMIC FACTORS
In the year 2008, the recession had put the economy in dilemma. The current situation of an
economy comprises of several economic challenges. The company has to adjust its pricing policy
according to its economy. The main concern of TESCO is its economic factors, which includes
profits, demands and prices of its products. The awareness of these factors is very important to
know any amend in its policies like taxation or other factors, which greatly influence its
functioning.
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SOCIAL FACTORS
With the passage of time, the peoples of UK have shifted their preferences. The consumers of
UK have shifted towards mass shopping. The types of commodities and services mostly incline
the beliefs and approach of the consumers. Consumer these days are more concerned about their
health issues therefore TESCO is trying to modify its functions by accommodating the
requirement of natural products.
TECHNOLOGICAL FACTORS
UK is an advanced country therefore, the technological factors play an important role in the
analysis of TESCO. Various new opportunities have emerged with the development of new
technologies. The first and foremost advancement is the prologue of online shopping with
several other facilities such as cash on delivery as well as free home delivery. Secondly, the
convenience, which is provided to its customers, which reduces the labor costs.
ENVIRONMENTAL FACTORS
TESCO incorporates environmental factors in their strategies. They try to minimize the damage
of its operation on the environment. They address dissimilar types of issues related to
environment and implement different ways of operations, which will encourage the society. Due
to scarce resources, it is very important to address all the concerns of the environment to give
maximum benefit to the society.
LEGISLATIVE FACTORS
The legal factor is determined by the legislative landscape of the country. The country of UK has
a steady legal environment. The performance of the TESCO is directly impacted by the policies
of the UK government and legislations. The prices are lowered for its customers that are they are
provided subsidy on the fuel they purchase.
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Human resource function of organisation
The role of Human resource Management is to systematize individuals in order to carry out
efficient work activities. This includes staffing of employees, coordinating worker benefits and
managing of workforce with the developed strategy. Looking at individuals as an asset is a part
of an existing human resource management.
Human resource management at TESCO give us a comprehensive idea of abundant actions,
contribution of the great functional environment, hiring proficiency and providing programs
besieged for the employees who have superior effectiveness headed for work.
Function of Human resource management in TESCO:
Function of human resource management is to reinforce a good association between an employer
and an employee. Taking in concern about the major function of Human resource management in
TESCO is that, it analyses the market on nonstop basis to classify the customers, based on their
demands and fulfilling factors. If it can be researched more profoundly, then it can be realised
that an organisation always takes care of the customer’s taste, which is to be followed in a severe
approach.
RECRUITMENT AND SELECTION:
Recruitment in TESCO takes place through service agencies, websites and through the media. It
performs internally and externally in the process of recruitment and selection process. Initially,
TESCO tries to fill the vacancy of the internal Talent plan to stuff a vacancy. If it is unable to
stumble on the appropriate candidate then they advertises within the organisation through
intranet for around two weeks. TESCO also provides an external approach towards human
resource management. It goes on external advertisements through mediums of radio, Television,
online and offline media both and through magazines. An advertisement gives us the better
acquaintance of this enrolment and selection procedure (Symon and Pritchard, 2015). Social
media is another area where we can specifically gather information about human resource
management of this organisation further.
TRAINING AND DEVELOPMENT:
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TESCO undergoes six levels of selection procedure, which includes well-planned training
method-on job training and off job training. These training method increases the sense of
possession, develops productivity and flexibility. Besides, it also imparts administrative skills
and headship capabilities. Recruitment process is helpful for the organisation, which reduces the
expenditure of any kind of mistake (Board, 2017). Apart from this, orientation is another
fundamental part in training and development, which imparts the exact job role for the entrant,
which assigned with certain duties to achieve the goal of an organisation.
MAINTAINING EMPLOYEE RELATION:
Employees are the pillars of any organisation (Wang, 2017). Employee relationship is a broader
concept in human resource management. It helps to assemble a good relationship through several
conducts, which will help to know an employee both individually and competently.
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Conclusion
This project has really helped to understand various concepts regarding the terms and conditions
applicable to certain Human Resource Management Companies specially Tesco which is really a
very big company operating in different type of sectors generating profit and thereby , adding its
names to the companies with gigantic profit turnovers . Its really very good to know that Tesco
really cares about its employees and is helping people by providing them with jobs through its
opening of different types of sectors which since many years had really gained a fame for
themselves .
However, the basic concept which every company follows is Human Resource Management on
the basis of which it’s fame depends . They really train the employees in a typical ‘Tesco ‘ way
keeping both the management faculty and time in mind .Tesco really promises its employees
with better incentives based on the performance and will never exploit their rights .
Recommendations
After having analysed the entire policies, it has been known that there are no lapses whatsoever
but Tesco has really through their International Brand Name have grabbed the eyeballs of each
person aspiring to work there . This in turns helps the company to partially exploit the workers of
other countries with low wages in comparison to the wages of employees getting in their own
motherland .It is so because Tesco lures the employees with certain benefits which rather gets
replaced with the salary issue . Therefore, the basic recommendation to the company would be to
eradicate this partial procedure. Otherwise , the company is quite good with their policies .If
’Tesco‘ really has to attain this global portion throughout , it needs to work harder year after year
to maintain their Human Resource Management regulations .However , these are all done at the
cost of replacing personnel department .However , this shouldn’t be done instead they should be
updated with proper expertise .
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Reference list
Board, G., 2017. Recruitment & Selection.
Symon, G. and Pritchard, K., 2015. Performing the responsive and committed employee through
the sociomaterial mangle of connection. Organization Studies, 36(2), pp.241-263.
Hübner, A., Kuhn, H. and Wollenburg, J., 2016. Last mile fulfilment and distribution in omni-
channel grocery retailing: a strategic planning framework. International Journal of Retail &
Distribution Management, 44(3), pp.228-247.
Hübner, A., Kuhn, H. and Wollenburg, J., 2016. Last mile fulfilment and distribution in omni-
channel grocery retailing: a strategic planning framework. International Journal of Retail &
Distribution Management, 44(3), pp.228-247.
Wang, R., 2017. Meeting report: Food biotechnology training in developing countries–from
genomics to synthetic biology. Biotechnology journal, 12(5), p.1500635.
Williams, A., Cloke, P., May, J. and Goodwin, M., 2016. Contested space: The contradictory
political dynamics of food banking in the UK. Environment and Planning A, 48(11), pp.2291-
2316.
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