Strategic Human Resource Management

This report explores the latest trends and strategies in strategic human resource management. It covers the impact of internal and external factors on HR strategy, theories and concepts related to growth and development, and their application in the context of Tesco. The report provides expert insights and analysis on Desklib.

Strategic Human
Resource Management

Table of Contents
INTRODUCTION.........................................................................................................................1
1 Emerging trends that influence HR strategy.............................................................................1
2 Determine both internal and external factors............................................................................3
3 Demonstrate with theories and concepts in relation to growth and development....................6
4 Evaluate a change management model in accordance of your chosen organisation................7
5 Discuss how the outcomes of HR can be monitored and measured.......................................10
6 Discuss how HR can support growth and sustainable performance to meet targets..............11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Human resource is a wider term of management that includes various aspects like staffing,
recruitment plus selection, training and development, performance appraisal which assist the
company in recruiting a potential employee who renders growth and ensure success in an
organisation (Armstrong and Taylor, 2020). Moreover, the human resource manager helps in
ensuring greater success and adds value proposition to business entity that provide an
opportunity to firm to accelerate diversification and expansion of a firm. This report is based on
Tesco which is a retailing company situated in United Kingdom. It deals with varieties of
offerings such as groceries, food products, toys, stationaries and other household essentials
which provide greater customer satisfaction and also it has strong global presence in the country.
This report comprises of latest and current trends and also it includes internal and external
factors which has major impact on HR strategy. This report covers various theories and concepts
of human resource and change management model is also included in this report. At last, it
covers the contribution of HR management that provides sustainable growth in achieving targets.
1 Emerging trends that influence HR strategy
Human resource is considered as the most valuable and asset for a business entity as it
helps in making improvement in performance of employees and help in accomplishment of goal
within respective time period (Armstrong, 2016). In addition to this, it is crucial which enhance
the growth and productivity by hiring a potential candidate which enhance the effectiveness and
controlling the activities of business enterprise. The Human resource manager of Tesco
implements a proper recruitment and selection procedure which assist the firm in making best
decision and provide an internal growth. In the context of Tesco, the current trends are
prescribed as follows:
Globalisation: In a changing era, there is excellent quality of merchandise or services
across the boundaries of countries and facilitate easy movement of people, ideas and so on
(Bailey, Mankin and et. al., 2018). The manager of Tesco attracts the talent of staff and provides
them with certain benefits such as compensation, incentives and monetary benefits so as to
provide them with maximum job satisfaction and retain them for a long period of time. The
respective firm hire best candidate who is ready to accept changes and modification and also has
ability to cope up with pressure as this increase the overall performance.
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Ongoing improvement programs: This ensures the organisation to recruit efficient staff
that provides continuous value to customers within a marketplace. The senior authority of Tesco
uses total quality management and six sigma in order to provide value proposition to their staff.
The employees must have excellent communication skills so that they could cope up with
pressure and help in accomplishment of task. The main motive is to eliminate the defects and to
make sure that there are continuous modifications in policies and procedures in accordance to
dynamic environment as it improves the overall flexibility and allow to business to gain rivalry
edge across the globe.
Advancement of technology: This is the appropriate current trend which helps the
company to use new and innovative technology by following proper code of conduct and
facilitate smooth operations in business activities. The manager of Tesco uses creative
technology and renders training among their staff so as to make them capable of handling
operating such systems. This enhances the overall productivity and renders an effective growth.
Participation of employees: The ideas and opinions of subordinates should be taken into
consideration which assist the firm in taking efficient decisions and promote the growth and
improve the overall performance (Berman and et. al., 2019). The manager of Tesco hires an
efficient staff and motivates and inspires them as it brings proper coordination and cooperation
within the confines of retailing industry.
Proper work life balance: It is the latest trends which every employee wants a proper
family and work life balance as it promotes a good culture and sense of team spirit among them.
The manager of Tesco understands the issues of employees and also provides certain leaves such
as planned leave, compensation leave and many more. This accelerates the level of job
satisfaction and helps in retaining employee as well as boosts their productivity.
Workforce diversity: This involves the differences in the working style of people on the
basis of their qualifications, age, gender, culture and religion. In a modern scenario, it is
significant for the manager of Tesco to facilitate diversity in a workforce as it helps in managing
the work in a most appropriate manner and promotes specialisation in a workplace as each
individual is assigned with work.
Continuous improvement: The manager of Tesco would focus on providing
apprenticeship among their staff so that they could deal with excessive pressure and workload.
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This improves the overall management and aids in managing an enterprise in a coordinated
manner.
Change skills requirement: Skills play an essential role as it aids in improving the overall
knowledge base of subordinates. The HR manager of Tesco would consider multi-tasking in
nature of their personnel as it builds motivation and morale of subordinates. This accelerates
their productivity over a marketplace.
Use of modern technology: The respective firm would hire its employees with the help of
online platforms as it would also conduct their interview through online procedure as it saves
time and depict fairness and transparency in case of retailing company.
Therefore, it is significant for the human resource manager to follow current and potential
trends in their business aspects and should grab every opportunity so that Tesco could achieve a
significant position within a marketplace.
2 Determine both internal and external factors
The internal factors assist the firm in assessing the availability of resources and make
proper utilisation of funds and also it identifies the strength and weaknesses by combatting
threats. The external factors consist of macroenvironment factors which are beyond the control
of company as it consists of political, economic, social and environmental and so on. These are
detailed as follows:
Internal factors: These are taken place inside the organisation and are controllable in the
hands of company. With reference to Tesco, they are as follows:
Corporate objectives: The leader of Tesco should render proper guidance and promote a
positive atmosphere and develop a team spirit which helps in achieving predetermined goals
within limited time period (Bondar, Hsu, Pfouga and Stjepandić, 2017).
Marketing strategies: By looking towards the awareness, the manager of Tesco would
hire a potential sales time and make plan to enter into new segments of market which provide a
vast opportunity to the respective firm to make changes in such a manner that boost the sales and
profitability within a marketplace.
Financial strategies: There should be optimum usage of funds and focus on expansion,
diversification as well as modernisation in an enterprise. The manager of respective firm should
make improvement in selection procedure and hie the staff for the respective vacant position so
that they could gain competitive advancement.
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Operational strategies: The manager of Tesco maintains mutual relation with suppliers
so that they could get the easy availability of products in a right place in accordance to demand.
They have strong cash flow which depicts a true and fair picture of the company.
Industry growth: The to manager of respective firm would take several factors into
consideration for determining the growth of a retailing industry such as efficient workforce,
innovative technology as well as keep themselves updated with changes so that they could fulfil
the requirements of their clients.
Industry attractiveness: By forming a best strategy, Tesco would determine the level of
attractiveness as it would make new and innovative merchandise which provide a vast growth to
the firm and also it would focus on visual merchandising to grab the attention of users across the
globe.
Competitive climate: The leader of concerned firm must develop competitive spirit in
their workplace and has to be enthusiasm and energetic as this would influence their staff to
work with more efficiency and in an appropriate manner.
Technology: The top management of Tesco would bring new and sophisticated machines
in their workplace aids in gaining a strong rivalry edge in a marketplace and also it assist the firm
in simplification of working procedure of a company, The use of artificial intelligence would
assist the firm in meeting the needs and requirements of customers.
External factors: The manager of Tesco uses PESTLE analysis to scan the external
environment in order to achieve competitive advantage. It uses six element which are showcased
below:
Political factor: This includes various elements such as corruption, political stability and
many more which affect business cycles of the company. UK is considered as the political stable
country which allows the human resource manager of Tesco to maintain same policy and
procedure due to its constant ruling part since a long time.
Economic factor: This covers various aspects such as GDP, monetary and fiscal policies,
economic growth and so on. Foreign Direct Investment provide an opportunity to the firm like
Tesco to grow their business at an international level and to attract the best talented workforce so
as to maximise the revenue and productivity (Brewster, 2017).
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Social factor: In today’s modern era, there is change in taste and preferences of
customers and they give more preference towards the quality and price is considered as
secondary. The manager of Tesco ensures quality specifications among their clients as it achieve
maximum satisfaction and also it helps in adding greater value to them which develop brand
loyalty.
Technological factor: UK is regarded as the technological advanced country in the
world. The manager of Tesco would promote new and innovative merchandise and render an
effective training among their staff so as to make them capable of handling sophisticated
machines and also use of artificial intelligence simplify the overall working procedures and bring
proper coordination as well as cooperation in a workplace.
Legal factor: It includes various constituents such as antitrust laws, patent, trademarks,
copyrights and many more. Government has taken several measures to provide protection
towards the business through various intellectual rights (Brewster, Mayrhofer and Farndale,
2018). The manager of Tesco maintains confidentiality of information regarding the employees
and does not allow it to leak as it creates trust and develop a positive reputation. Plus, it
implements laws such as employment laws, health and safety laws and many more to promote
the interest of workers as it maintains proper coordination.
Environmental factor: This cover factors such as environmental awareness, pressure
from NGOs and so on. There is increased awareness towards environmental aspects by forming
an appropriate strategy as it helps in monitoring and proper evaluation of business activities. The
manager of Tesco eliminates the usage of plastic bags and promote reduce, reuse and recycle
strategy which help in achieving sustainable development in a long run. This influence the
human resource manager by recruiting a potential candidate who are aware of latest trends and
have efficient knowledge which create the awareness towards such aspects.
Demographic factors: This involve the study of population through various factors such
as age, income distribution, marital status, population trends and many more. The manager of
Tesco would understand these factors and promote their products accordingly which maximise
the sales and profit margin of retailing company.
Labour market: This involves the communication between the managers and subordinates
in such a manner that they must perform their best so that they could generate maximum value in
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a marketplace. The human resource manager of Tesco would search a potential candidate who
could work with integrity and honesty which improves the overall performance.
Regulatory framework: The top manager of Tesco would maintain all necessary
guidelines and policies and procedures in a smooth and efficient manner so that they could
maintain conduct of operations in an effective and efficient manner. They also follow laws and
legislations which improves the overall functioning of a retailing company.
3 Demonstrate with theories and concepts in relation to growth and development
The theories and concept provide the development of human resource as it provides
several guidelines and code of conduct which help in achievement of business objectives in a
proper time period. With reference to Tesco, the concepts and theories are described beneath:
Concepts:
Planning: This is most important concept as it aids in deciding proper course of action
among the various alternatives available in a predetermined time period (DeCenzo, Robbins and
Verhulst, 2016). The manager of Tesco would make an appropriate strategy while making a
policy regarding the recruitment and selection as it helps in proper implementation of task in a
well-defined manner.
Organising: This involves proper systematic of work and establishes authority and
responsibility among them by following delegation of authority in a workplace. The manager of
Tesco would make efficient utilisation of manpower so as to get desired level of output. This
improves the overall performance and maintains proper coordination.
Directing and Monitoring: The human resource manager of Tesco also monitors the
activities of their staff and provides an effective solution to them so that they could not face any
confusion and misunderstandings.
540 performance appraisals: The management of Tesco provide feedback among their
staff by evaluating the overall job obligations performed by them. This type of appraisal would
improve the quality of manpower in an organisation.
E recruitment: This method involves the process of recruiting and selecting personnel
and conducting their interview through online procedure as it saves time.
Theories: The theories of human resource in context of Tesco and ALDI are showcased below:
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Participative decision-making theory: This is also understood as democratic style in
which the opinions and ideas of staff are taken into consideration which help the human resource
to take an effective decision. The manager of Tesco uses this theory in order to increase the level
of job satisfaction and boost their morale and motivation among them whereas the senior
authority of ALDI apply autocratic style which assist the manager to take quick decisions and
promote sustainability in a long run.
Theory X and Y: This theory is propounded by McGregor as theory X and Y are
compliment towards each other. Theory X assist the firm in making resistance to changes and
there is chances of job security and employees does not felt easy to accept the changes and does
not like to accept responsibilities whereas theory Y provide a positive outcome towards the
business as employees develop their skills and capabilities that provide learning opportunities
and also they do not conquer of fears. Theory X provide a pessimistic nature and behaviour of
subordinates whereas the latter provide an optimistic nature and behaviour of employees (Hayes,
2018).
Example 1. The manager of Tesco use theory Y in their workplace which promote a
positive atmosphere and they work hard so that they could reach beyond their potential.
Example 2. The manager of ALDI applies theory X in order to maintain strict discipline
and punish those who are not performing well their respective position.
Resource based theory: Under this theory, the subordinates are regarded as most
valuable resource as they are rare and provide growth to firm in a desirable manner.
Example 1. The leader of Tesco renders a specialised training among their employees in
order to accelerate their skills and knowledge base and also to prepare them for accepting
challenging roles which enhance the overall productivity.
Example 2. the manager of ALDI encourages and inspire their colleagues so that they
could work with zeal and thus bring positive outcomes.
4 Evaluate a change management model in accordance of your chosen organisation
Change is important part of an organisation as it helps the company to make necessary
modifications and transformation in their business aspects as this is possible due to the reason of
globalisation (Konrad, Yang and Maurer, 2016). There is changes in working style due to new
technology and preferences among the customers. By looking this, the manager of Tesco applied
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change management models such as Kotter’s change model and Lewin model as these are
detailed as follows:
Kotter’s change model: The eight elements of this model are given below:
Create urgency: The manager of Tesco has to identify the threats and make an
appropriate strategy to combat threat and it should make proper use of opportunities and
determine the market scenario so that it could make transformations.
Powerful coalition: In this, the role of leader is considered as most appropriate as it
consider several changes and convince their team members and build a strong team spirit among
them. This built confidence and form a strong coalition that work together to achieve goal
(Melendez, Dávila and Pessoa, 2016).
Create a vision: The leader of Tesco prepares a strategy and divide the task among their
staff in accordance to their specialisation and thus execute the formed strategy in an efficient and
proper manner.
Interact about the vision: The top manager of Tesco would communicate about the
vision and mission with their colleagues so that they could make an appropriate change as it
ensures future success among them.
Eliminating obstacles: The senior authority of Tesco would monitor the activities of staff
who are resist to make changes and provide rewards and recognition to them so as to enhance
their overall performance.
Create short term wins: It is essential for the manager to make short term goals instead
of long-term strategy in a dynamic environment. At this point of stage, it would provide rewards
and appreciation among their staff who tends to work with zeal and help in meeting targets
within a short span of time.
Analyse the change: The manager of Tesco emphasises on ongoing improvement in their
ideas and overall procedures which help in achievement of goal in a respective time period. Also,
it emphasises on facilitating new changes which in turn improves the overall performance and
bring growth in a respective manner.
Anchor the changes in corporations: This is the last step in which the manager of
respective firm talks about the chances of success and changes which is regarded as the core
process of an organisation. It helps in bringing the effectiveness and provide a new style of
working in a workplace which contribute a greater success in a business entity.
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Example 1. The senior executive of Tesco would create a strong vision that is to be the
most profitable and valuable business and would serve their employees with loyalty and best
possible manner so that they would contribute their maximum in achieving their targets for
shorter duration.
Advantages: This model follows a proper sequence of activities and determines a proper
hierarchy in a workplace and also work best in a dynamic environment.
Disadvantages: Sometimes, it led to various barriers which does not resist to changes in a
business properly which in turn create negative consequences.
Lewin’s change model: it is divided into three stages which are presented as follows:
Unfreeze: This model emphasises to depict the behaviour of human and mindset of
people to resist changes. The manager of Tesco would conduct a survey so as to determine the
requirements of changes and make preparations by talking with stakeholders in order to get
immense level of support as it involves proper communication strategy (Rees and Smith, eds.,
2017).
Change: The manager of concerned firm must formulate an effective strategy and
involve employees and make proper organising of work so as to avoid duplication of activities.
They make optimum balance between authority and responsibility and make sure that there is
proper obligation of task.
Refreeze: This stage emphasises the firm to be ready for action and promote a new and
modern style of working procedure in an organisation. The manager of Tesco should promote
new culture and offer training among their staff and also develop a change in organisation
structure which bring proper hierarchy in a workplace. Also, this provides a great learning
opportunity for employees to embrace with necessary skills and capabilities that boost their
confidence.
Example 2. The manager of Tesco would bring radical improvements in their business
by offering on the job training and thus inculcate confidence and determination among them.
They would follow new policies and procedures which maximise their efficiency.
Advantages: This model is most appropriate and depicts simplicity and would take less
time in running the business operations.
Disadvantages: Fast and quick changes in a corporation would cause distress and
minimise the satisfaction level of employees.
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On the basis of the above analysis of Lewin and Kotter change management models, it
has been analysed that Lewin’s model is better to be used by the management of Tesco. This is
said because it consumes relatively lesser time than Kotter theory due to the number of steps
involved. Further, it has also been noted that Lewin model provides assistance to an organisation
in making sure that things get back to the normal phase. This implies that the end phase of this
model ensures that employees get accustomed to the new pattern or system of working, thereby
not facing any kind of discrepancy related to the same. Thus, it is advised that the management
team of Tesco should consider to choose Lewin model over Kotter’s theory to execute the
change within the organisational premises.
5 Discuss how the outcomes of HR can be monitored and measured
Evaluation and monitoring the performance is most important for an organisation as it
depicts success and help in accomplishment of goal within respective time period. In accordance
to Tesco, the same is presented as follows:
Key performance indicator: The manager of Tesco would measure the overall
performance of a business so that business objectives could be fulfilled successfully. They also
make sure that excellent performance of personnel would produce positive consequences by
reaching their targets in a limited time.
Best fit: The HR manager would search a potential candidate and assign them with roles
and responsibilities in such a manner that they could best fit in their assigned roles.
Audit approach: This approach provides a relevant information to the human resource
manager and help in accomplishment of well-defined goals (Roth and et.al., 2018). The senior
authority of Tesco would create a mission and allocate resources in an efficient manner which
minimise the overall cost of operations and deliver a comprehensive result.
Quantitative plus qualitative index: This involve amount of expenditures incurred in
running the operation of a business such as turnover cost, training cost, cost incurred in work life
programs as it provides methodology of studying the relationship among the behaviour of
customer as well as employee attitudes.
Balance score card: This is another technique to measure the performance of employees
as the manager of Tesco has to consider four components to track the indicators namely,
customer, financial status, growth perspective and business process (Rothwell and et.al., 2016).
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Customer: this involve the satisfaction level of customer by providing good quality as
well as render them with fast services which produce a desired level of output.
Business process: It involve the production cost and consider various roles such as
logistics, manufacturing, packaging and so on. They maintain a proper hierarchy and facilitate
smooth operations of a corporation.
Financial status: The finance manager makes proper financial planning and prepare an
estimated budget in order to depict the total revenue and capital expenditure incurred in a
business.
Growth: This define the potential ability of employees to learn and grow which depict a
significant positioning of a company. The commitment of employees in case of Tesco would
assist in evaluating the performance and measuring the outcomes of a business.
Benchmarking: It involve the comparison of actual performance against standards that
help in controlling the activities of business enterprise. The manager of Tesco could prepare an
effective strategy and make necessary changes and also it judges the accuracy of standards that
help the company to take corrective action and eliminate deviation if any as it lights the deviation
in case of retailing company. Furthermore, this assist the firm to gather more data which help in
maximising the efficiency over a marketplace.
6 Discuss how HR can support growth and sustainable performance to meet targets
The manager of Tesco could motivate and inspire their staff so as to make them capable
of achieving higher performance and contribute more towards the accomplishment of targets. It
can support growth and achieve sustainable performance through several ways which are
presented below:
Organisational objectives:
Effective apprenticeship: An efficient manager could conduct apprenticeship programs
for employees in order to enhance their performance and develop them as this provide a greater
path towards their career. The manager of Tesco provides on the job training among their
subordinates to accelerate their knowledge base and skills and thus maximise the productivity
and efficiency in a workplace. It also helps the company to improve their productivity and
inculcate confidence and determination among them.
Performance management: Performance management involve the set of activities that
evaluate the performance of subordinates to manage a particular task. The manager of Tesco
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would evaluate the performance of employees and render them with rewards and incentives on
their efforts so that they could work with zeal and assist the firm in meeting the targets within
limited period of time.
Motivation: This play a significant role as it encourage subordinates and inspire them in
order to improve their performance. It is a stimulating process which includes desire, urge and
wants to satisfy the needs and wants of individual in a society (Stewart and Brown, 2019). The
manager of Tesco provides both financial and non-financial incentives amongst their staff and
appreciate their efforts in front of everyone which make them delighted and happy. They work
harder and harder with greatest efforts so that they could contribute their major role in attainment
of goals.
Facilitate change management: Changes are taken place at a fast rate so it is necessary
for the top management to make modification and transformations in a corporate world. The
manager of Tesco conducts an extensive research and determine the taste and preferences of
customers and identify the nature of competitors so that they can gain rivalry edge over a
marketplace. This provide assistance to firm to analyse the market scenario and help the
company to make planning and allocation of resources in an efficient manner to eliminate
overlapping of activities. This saves time and cost of company in case of retailing industry.
Several theories such as best fit, key performance indicators, benchmark would assist the
manager of Tesco to review the performance of employees and help them in alignment of
resources by matching the job requirements and skills of an individuals which improve the
overall functioning and aids in taking immediate actions by eradicating deviations.
Therefore, the senior authority would evaluate and control the activities of staff through
Enterprise Resource Planning and assist in taking effective decisions so as to achieve sustainable
development as well as vast growth in future.
CONCLUSION
From the above report, it has been comprehended that human resource help in ensuring
growth by making transformations and changes in a business in a coordinated manner. It makes
proper planning and assign delegation of authority which aids in maximising the productivity
and ensure success in future. The current practices and theories of human resource like
participative decision making, theory X and Y is discussed in this report. The various change
management models like Lewin change and Kotter’s model is facilitated so as to promote growth
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and sustainability in a long run. It has been analysed that the manager should monitor and
evaluate the outcome so that it could measure growth and achieve effective performance.
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