Strategic Human Resources Management in Tesco

This report discusses the strategic human resource management practices in Tesco, including strategic workforce plan, internal and external influence on HR function, key strategic and operational considerations, and contemporary theories linked with practices for demonstrating its support in HR strategy. The report also covers the AMO theory and its application in enhancing the overall performance of employees in an organization.

Unit 21 Strategic Human
Resources Management

Table of Contents
INTRODUCTION...........................................................................................................................3
PART 1............................................................................................................................................3
Aim, purpose and scope of strategic workforce plan..................................................................3
Analysis of key external and internal influence on HR function of organization.......................4
Evaluation of key strategic and operational considerations........................................................5
Contemporary theory linked with practices for demonstrating its support in HR strategy and
meeting business objectives.........................................................................................................5
CONCLUSION................................................................................................................................7
PART 2............................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Strategic human resource management is an effective business function which is used in
order to enhance the management of employees in an organization by developing effective plans
and procedures for their growth. The current report will be based on Tesco which is a popular
supermarket chain having a significant market share in the global retail industry.
This report will explain strategic workforce plan, key external and internal influence on
HR function, key strategic and operational considerations and practices for demonstrating its
support in HR strategy
PART 1
Aim, purpose and scope of strategic workforce plan
Strategic workforce plan is an effective tool which is used by businesses to determine the
demand and supply of their workforce in the business. Different skill gaps and initiatives and
identified for preparing and effective plan which will be useful for the overall development of a
organization in the industry (Al-Khaled and Fenn, 2020). It can be beneficial for Tesco to
improve the management of their daily business operations which will provide them which better
opportunities to achieve growth in the industry.
Aim
The main aim of this strategic workforce plan is to determine various trends and
determinants which has an impact on the performance of employees in the business environment.
Scope
The strategic workforce plan may be beneficial for a business to improve the overall
performance of their workforce and improve their effectiveness in the industry. It will provide
better assistance to the organization to facilitate their HR management process and enhance their
overall efficiency in the industry.
Purpose
The major purpose of the business is to establish certain developmental objectives in their
business environment and develop better strategies which is helpful in enhancing the overall
management of human resource which is an integral part of the organization.

Analysis of key external and internal influence on HR function of organization
There are different trends which are becoming popular in the current business
environment which are helpful in motivating the employees to increase their overall contribution
towards the organizational goals. Effective strategies are used by businesses which are useful in
developing a better process for the overall success of the organization in the industry. These are
segmented into internal and external factors which have a significant influence upon the overall
development of the business in the industry.
PESTLE Analysis for External Factors
Political factors
The political instability in eth business environment of the country may create difficulty for the
organization to manage their operations successfully. These may restrict the trade from outside
nations which may negatively impact the development of the organization.
Economic Factors
Demand of employees has significantly decreased over a period in the industry which is a
major cause of the economic crisis faced by countries. The organizations are not able to hold
their employees which has a negative influence upon the overall recruitment and management
process of the business (Hamadamin and Atan, 2019).
Social Factors
Covid-19 pandemic has motivated the employees to stay at their respective homes and
work remotely in their choice of organization. This has a major influence on their HR function of
the organization as the societal acceptance to work from home culture can reduce their interest in
doing jobs at their workplace.
Technological factors
Developments in the technological tools and techniques to manage the workforce may
have a positive impact on Tesco to facilitate their business processes and manage the training
and development needs of their employees effectively (Saks, 2022). With the help of effective
software, the business may be able to track the performance of their employees.
Legal factors
Legalities and changes in the laws and procedures of the business has a significant impact on the
overall decision making process of the business. This can create issues for Tesco to sustain in the
business environment of different nations.

Environmental factors
The environmental calamities in different countries may create difficulty for the businesses to
operate successfully. This may decrease the operational capabilities of businesses in
unfavourable economic conditions.
SWOT Analysis for Internal Factors
Strength
Leadership is a strength which has a positive influence on the overall management of the
HR policies and procedures in the industry. The inputs and decisions of the leader of an
organization towards the overall development of their employees plays a vital role in increasing
their overall success in the industry. It is crucial for the leaders to establishing better practices for
their HR department which can be beneficial for them to enhance the effectiveness of the
management process.
Weakness
Communication a major weakness which can create differences between the organization
and their employees for building better relationship and trust amongst them (Harvey and
Turnbull, 2020). This may hamper the HR management process of the business which is
necessary for them to achieve better results in the industry.
Opportunities
Expanding in new and attractive markets is a better opportunity which can enhance the
overall business environment of the company with the help of these activities successfully.
Threats
The increase in competitive advantage of key rivals has a negative influence one the
overall market share of Tesco in the retail industry.
Evaluation of key strategic and operational considerations
Changing the business decisions of Tesco on the basis of the market situation is a major
strategic consideration which is necessary for the business for stay relevant in the contemporary
and future business environment. For example, upgrading with time is a major activity which
needs to be performed by the business in order to stay ahead of their competitors and gain better
market share in the retail industry (Iqbal, 2018). Due to this factor many businesses fail to

achieve success in the industry as their competent workforce gets shifted to different companies
where they find better opportunities and money.
For example, It is crucial for the business to grow and enhance their services which are
crucial for them to create better practices for the company which is beneficial for them to retain
their highly talented candidates and reduce the employee turnover ratio of the business. By
providing them with the latest facilities and tools and techniques to perform their business
practices. Various benefits can be gained by the organization by making these changes in their
strategic decision making process.
For example, adopting new software and machinery for the employees to reduce their
manual work can be a major consideration for the business. To access workload and complexity
to complete the tasks, employees may feel difficulty in achieving their organizational goals
effectively. By adopting these new practices, the business will be able to provide their HR
department to gain better assistance and form better policies and procedures for increasing
motivation levels of the workforce. It is a beneficial practice which provides a positive quality of
output for the company to upgrade themselves and achieve better efficiency in the business
processes of the company.
Contemporary theory linked with practices for demonstrating its support in HR strategy and
meeting business objectives
There are several theories and practices which are used by the business to improve their
efficiency in the business environment which is crucial for them to grow and achieve success.
Changes are made in the strategic decisions of the business to control the quality of output
achieved by the business. The AMO theory is an effective framework which explains that there
are three independent work systems which are helpful in increasing interest of employees
towards the business practices and procedures. Ability, motivation and opportunity are the
different aspects which are helpful for HR department to meet the aims and objectives which are
pre-determined by the organization. These aspects are as follows:
Ability
The current position and capabilities of the employees are analysed by the HR managers
in order to identify the skill gaps and hindrances which have a negative impact on their
productivity (Jiang and Messersmith, 2018). By identifying these factors, the business is able to

reduce the possibility of errors and misconceptions which may frequently arise among the
business.
Motivation
Motivating employees by different ways and techniques in order to gain better advantage
and enhance their services towards the business. Several techniques may be used by the business
such as rewards, appraisals, flexible timings etc. for improving the overall success of the
organization.
Opportunity
Providing various growth and development opportunities to employees on the basis of
their contribution in the company is another effective practice which is useful for the
organization to grow.
This strategy of the business can be effective in providing better aid to Tesco for
improving their efficiency in the industry and gain better advantage. With the help of this
approach, the company is able to improve their sustainability in the industry as the employees
will show more interest in the business practices which are achieved by the business in the
industry. This has a major role in motivating employees towards the business objectives and
creating a better impact on their overall productivity (Macke and Genari, 2019).
The HR department can build better relationships with the customers and provide them with
effective options to grow and achieve success in the industry. There are several aspects which are
necessary for the business management which can offer the organization with better
opportunities to enhance the performance of their employees in the industry and increase their
contribution in the development of the business. By making several changes in their approach,
the employees are able to grow and have a better image of these aspects on their success in the
industry.
Flexible arrangements for the employees can have a positive impact on their performance in
the development of the organizational aims and objectives. E-recruitment can be useful for the
company to simplify their recruitment and selection processes which is beneficial for the
business to grow and enhance in the competitive business environment. Performance
management systems are essential for increasing the success of the employees in the industry.

CONCLUSION
It is concluded from the above report that the organization have been benefitted by
analysing the internal and external influences which have a significant impact on the business
practices. Adoption of new and effective policies and procedures to control their HR
management process is one of the major aspects which are helpful for the business to gain better
impact in the industry. The AMO theory is applied by business which is an effective HR
management theory used to evaluate and enhance the overall performance of employees in an
organization. These practices have been able to provide better assistance to the business to grow.
PART 2
To be covered in PPT.

REFERENCES
Books and journals
Al-Khaled, A.A.S. and Fenn, C.J., 2020. The impact of strategic human resource management
practices on organizational performance. BERJAYA Journal of Services &
Management. 14. pp.53-60.
Hamadamin, H.H. and Atan, T., 2019. The impact of strategic human resource management
practices on competitive advantage sustainability: The mediation of human capital
development and employee commitment. Sustainability. 11(20). p.5782.
Harvey, G. and Turnbull, P., 2020. Ricardo flies Ryanair: Strategic human resource management
and competitive advantage in a Single European Aviation Market. Human Resource
Management Journal. 30(4). pp.553-565.
Iqbal, A., 2018. The strategic human resource management approaches and organisational
performance: The mediating role of creative climate. Journal of Advances in
Management Research.
Jiang, K. and Messersmith, J., 2018. On the shoulders of giants: A meta-review of strategic
human resource management. The International Journal of Human Resource
Management. 29(1). pp.6-33.
Macke, J. and Genari, D., 2019. Systematic literature review on sustainable human resource
management. Journal of cleaner production. 208. pp.806-815.
Saks, A.M., 2022. Caring human resources management and employee engagement. Human
Resource Management Review. 32(3). p.100835.