This report discusses the strategic management of human resources in Tesco, including the relationship between business strategy and HR strategy, evaluation of SHRM theories and models, approaches of SHRM, HRM practices, and recommendations.
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STRATEGIC MANAGEMENT HUMAN RESOURCES
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TABLE OF CONTENTS INTRODUCTION...........................................................................................................................3 TASK 1............................................................................................................................................3 Relationship between business strategy and strategy of human resource...................................3 Evaluation, comparison and contrast of theories and models of SHRM.....................................4 Approaches of SHRM..................................................................................................................6 HRM practices.............................................................................................................................7 Recommendations........................................................................................................................8 TASK 2............................................................................................................................................8 Nature and theoretical perspectives of employment relations.....................................................8 Roles of actors within the employment relationship...................................................................9 Recommendations......................................................................................................................10 CONCLUSION..............................................................................................................................11 REFERENCES..............................................................................................................................12
INTRODUCTION Strategic management of human resource is very important function to an organisation and business in market place. Basically, proper strategies are highly required for the department of human resource for managing human resources in the workplace.Currently most venture in market place tries to make their HRM strategies very productive to gain effective outcomes. Strategic management of human resources contributes in a company for taking lots of effective work from different employees and workforce (Durmaz and DÜŞÜN, 2016). This report discusses strategic management of human resources in Tesco. Basically, Tesco is the highly reputed retail brand of the United Kingdom, which currently has a huge workforce of 450,000 employees. Headquarter of company is situated in England, UK. This report is divided into two parts, in which the first one discusses about effective relationship between strategy of business and strategy of human resources. Some models also have been described in this report relating to SHRM.Thetasktwodiscussesabouttheimplicationsofemploymentrelationsonan organisation. Some appropriate recommendations also have given in this report for more improving SHRM. TASK 1 Relationship between business strategy and strategy of human resource There is great relationship between business strategy and human resource strategy within Tesco. Basically, business strategies of a business are known as techniques which companies uses for gaining excellent outcomes. On the other side, human resource strategy is also a one of major business strategies which businesses develop and uses for managing their human resources in very productivemanner. Bothare completelyinterrelatingwith eachother. Top-level management of Tesco is completely aware about that, align HR strategy with business strategy enable to a venture for improving the existing employee satisfaction and performance. Basically, align HR strategy with business strategy helps to Tesco for achieving different strategic objectives in market place. In this dynamic and competitive world, each organisation wants to gain an effective workforce for improve its business performance and productivity in market place (Egas, Saltos
and Toasa, 2019). In this situation, HRM strategy is one of the best business strategies to an organisation for gaining huge competitive advantage in market place. Basically, HRM strategy helps to business for gaining an effective and skilled workforce, so that when any business has this type workforces then, it can simply take very productive work from its employees. At the end, its performance and productivity are automatically increasing in market place. Top-level management and HR manager of Tesco have to set a perfect alignment between its HRM and strategy and other business strategies, because a functional department can’t achieve its final target without coordinating with other departments. Existing strategy of HRM within Tesco is completely well-developed, and this is the main reason that top-level management is this retail company systematically managing is huge workforce. Evaluation, comparison and contrast of theories and models of SHRM Currently lots of theories and models of SHRM available in market place which helps to companiesand businesses for perfectlyconducting differentpracticesof human resource management in workplace. The Fombrun and the guest etc. are some major models of strategic human resource management. Currently the HR manager of Tesco is taking lots of advantages throughtheseallmodels(Rastegari,HosseiniandGhayoor,2020).Actualconceptsand implications of these models has been discussed below; The Fombrun Model This model of SHRM was developed by Fombrun in 1984 for providing the strategic framework to human resource management of a company. This model enables to different businesses for making their HRM practices very much effective. The Fombrun model of SHRM includes four key elements which human resource manager at each organisation have to consider for effectively managing human resources in workplace. All four elements of existing model have been discussed below; Selection:This is the first element within this model of SHRM. According to this element, human resource management at Tesco have to take appropriate step towards conducting selection practice. Basically, selection is one of major practices of human resource management for hiring some effective, talented and skilled employees in own workplace. Selection practice of HR
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department is very important to Tesco, because this is the practice that enables to business for gain an effective workforce. Reward:This is another key element within the model that enable to HR department of Tesco for improving the performance of Tesco (Navarro, 2019). According to this element, human resource department of company has always required to give reward its high performers in workplace, because when any it will reward high performers, then all employees can feel valued by the venture. At the end, employees will be motivated to work hard in workplace for achieving all over target of Tesco in decided time period. Appraisals:On the basis of this element, human resource management at business is responsible to conduct appraisals also in daily operations for knowing who is working in excellent manner within workplace and who is working with poor performance. Practice of appraisals is very necessary to a company for maintaining an effectiveness within performance of different employees. Development:This is the last element within Fombrun model of strategic human resource management. This element says that, HRM of each company is always responsible to provide appropriate development sessions to employees, because these sessions enables to employees to develop their undeveloped and weak skills and abilities. This is the main reason that, HR manager of Tesco have to consider this element also in workplace. The Guest Model The Guest model is another major model of SHRM which was developed in year 1997 by David Guest. This model basically aware businesses and individuals that how HR management is differentfrompersonalmanagement(Metandet.al.,2020).Thisismodelincludessix dimensions of HRM which are something similar as the four elements of The Fombrun model. These all six dimensions of human resource management has been discussed below; Strategy:Strategy refers the technique of human resource management within an organisation. Without developing and adopting proper strategies of HRM, no business can manage its human resources or employees. Basically, strategy helps to HR manager to gain productive outcomes through its daily practices.
Process:This dimension of HRM refers different practices which HR department of a company conducts to provide an excellent workforce to the company. In this situation, recruiting, selecting, training and appraisals are major practices of human resource management within Tesco. Outcomes:Outcomes represents the results of practices which was conducted by the human resource management of company in order to manage all employees in proper manner. After conducting different practices of HRM, the department can gain excellent quality, commitment and flexibility in performance of employees in the form of outcomes. Behaviour outcomes:Tesco has a workforce of 450,000 number of employees, so that these all employees not come from the different background, so that each employee has its own motivation, behaviour and perception (Dai, 2018). In this situation, sometimes some employees have negative motivation, perception and behaviour which can negatively affect to the operations of company. In this situation, HR department of company have to change behaviour, perception and motivation of employees in positive way to gain very positive outcomes. Performance outcomes: Performance outcomes also another one of dimensions within the Guest model of SHRM. This dimension will aware HR department of different Tesco that how excellent performance of employees plays an effective role in gaining very positive outcomes. In this situation, HR department of company have to conduct different practices for improving performance of various employees. For example; HR manager at Tesco can provide training and development sessions to employees, it can use motivational theories for improving performance of employees etc. At the end, the Tesco will be enabled to gain lots of high performers in the workplace. Financial outcomes:Financial outcomes are the results of all HRM practices and operations which was conducted by the HR management Tesco (Kizielewicz and Wolska, 2017). The business can achieve these all outcomes in the form of higher profit margins, revenue and competitive advantage etc. Both, the Fombrun and the Guest models are very productive models of SHRM which completely enables to human resource management of Tesco for properly managing different
employees and people within workplace. Due to implementation of these models, currently HR department is able to provide an effective workforce to Tesco. Approaches of SHRM Strategic perspectives of best fit/Contingency:This is a strategic approach of human resource management, and also considered as the management theory which suggests an appropriate management style to a manager. After adopting this approach of SHRM, the HR manager can simply manage different employees in workplace with very effective manner. Best practice/Universalist: Best practice or universalistic approach of SHRM is relating with the viewpoint that here is the best practices HRM set, and when any HR manager of company adopt this approach for workplace uses, then it will be able to gain very positive results (Callaghan, 2018). It provides the best framework for conducting different practices of SHRM in proper way. Resource based view (RBV):Resource based view approach was mainly developed for the purpose of gaining huge competitive advantage in market place by managing human resources effectively.Thisapproachmainlycanencouragetotop-levelmanagementofTescofor informing their employees about the actual value of learning, because learning attribute within employees can develop their workability and productivity within workplace. HRM practices CurrentlyHRdepartmentconductsdifferentpracticeswithinTesco’sbusiness environment. In this situation, performance management and reward are two major practices of this human resource management in this venture, so that these both practices have been evaluated below; Performance management:The HR department always conducts this practice in order to improve existing performance of employees. According to different business experts, when any knows how to perfectly management the performance of employees in the workplace, then it can simply gain lots of high performers within its daily operations (Yilmaz and Flouris, 2017). HR department at Tesco basically applies motivational theories, provides training sessions etc. to productively manage performance of all human resource or employees.
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Reward:Reward is another major practice of HRM in Tesco that has enabled to this department for highly motivating employees in workplace. Basically, HR department selects high performer of company, and then give reward and appreciation them for their huge efforts under this HRM practice. In this situation, when department give reward to high performing employees, then these employees get motivated to work more hardly in the workplace in future. That’s why reward is a very important practice of human resource department within Tesco. Recommendations Design and re-deign the performance management system is very necessary task to HR manager within Tesco. Without managing performance of employees, this retail company can’t lead the UK’s retail industry in the future, because currently human resources are the most important assets to company (Trigeorgis and Reuer, 2017). This is the main reason that, the HR manager is always required to design an effective system of performance management. In this system, manager have to focus on considering that, who is high performer and who is low performer in workplace. Then it needs to mentioned those all activities in its performance management plan which it will be conducted in order to improve the performance of low performers. After developing different skills and abilities of all employees, HR manager have to re-design the system for knowing that, now most employees are properly performing in workplace of not. This is very necessary to Tesco for always maintaining effectiveness in the performance of all employees. TASK 2 Nature and theoretical perspectives of employment relations Employment relations term basically indicates the relationship between employees and employer. Generally, when any company has effective employment relations, then it can simply gain very productive work from its employees. No business can survive with poor employment relations in this dynamic and competitive world. In this situation, most companies and businesses within market tries to make their employment relations very effective. In most organisation, HR department is the main responsible body for maintaining excellent employment relations (Ataş and Kasımoğlu, 2018). Nowadays, employees also get aware about the role of effective employment relationship, and that’s why they like to work in only that firms where existing
management has managed the effective relationship with different employees. According to differentbusinessexperts,whenemployerofventurebuildsgreatrelationshipwithits employees, then this factor indirectly improves the performance of all employees in workplace. That’s why this is very important aspect for Tesco. There are some theories also available relating to employment relations which has been discussed below; Unitarism:This is the first theoretical perspective of employment relations which informs business about that, conflicts between employer and employees always negatively affects to employee relations. In this situation, HR manager at Tesco have to remove different conflicts between employer and employees by considering different main reasons behind conflicts. For example; HR department can avoid wrong recruitment, because this promotes conflicts in workplace, HRM should avoid inappropriate promotions, it should improve communication values also between employees and employer, because poor communication is a big reason behind different workplace conflicts, etc. (Dimitryuk, 2016). By considering these all factors of unitarism theory, the HR manager at Tesco can simply build great employment relationship. Pluralism:Pluralism theory of employment relationship has projected different practices and functions of trade management and trade unions. This perspective shows the value of collective bargaining as well. According to this theory, communication is the way to different companies to manage effectiveness within employee relations, because the management can simply solve any conflict with employee by communicating with them. So that, HR manager at Tesco have to take steps towards developing communication sills of employer and employees to gain to remove conflicts. At the end, these skills will contribute in building great employment relationship as well. Marxism:Marxism theory will help to Tesco’s HR department for understanding the technique ofsocioeconomicanalysiswhichgenerallyshowstheclassrelationsandsocialconflict (Leiblein, Reuer and Zenger, 2018). This theoretical perspective claims that, a company can simply gain better employers, if existing management of company aware them about the actual implications of employee relations. In this situation, HR manager at Tesco have interact with employer for informing them about the role of effective employee relations. This is really necessary step to motivate employer for maintaining effective relationship with all employees.
These all are major theoretical perspectives of employee relations which can support Tesco’s HR department to make an effective relationship between employers and employees. This relationship will positively affect to performance of all employees. Roles of actors within the employment relationship There are different actors exists within Tesco’s business environment which plays an excellent role in making great employment relationship, like; HRM, top-level management, government, employees etc. These all actors contribute in developing effective employment relations. Roles of these all actors has been discussed below; HRM:Human resource management of Tesco plays an excellent role in building great relations between employer and employees. HR manager of this retail company arranges different events, like;meeting,partiesand plays etc.In these events, human resource departmentinvites employees as well as employer, so that when both parties meet with each other in these events, then employee relations will be automatically improved. Top-levelmanagement:Company’suppermanagementalsoplaysgreatroleinbuilding effective relations, so that it contacts to HR team to use different strategies for making good relations between employer and employees (Chen, Yueh and Liang, 2016). Basically, HR department takes order through top-level management make excellent relations, and that’s why role of top-level management is also very important. Government:Currently the UK’s government has developed different laws, regulations and standards which each business has to adhere in its workplace. So that, Tesco adheres all laws of government in its business environment including employment law. Basically, employment law is helpful to HR tam to build great relations between employers and employees. This law provides basic rights to an employee in workplace, so this affects employees in positive way. Employees:Employees also plays a very important role in order to build effective employee relations. Basically, when employees fulfil their all obligations and duties in proper manner, then their upper management and leaders will appreciate and reward them. This factor will improve the relationship between employers and employees (What Are Employee Relations and Why They Are Important, 2020). That’s why employees’ role is also mandatory in building effective employment relationship.
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Recommendations According to current highly competitive market place, each business has to make effective relationship between employees and employer. Of course, currently HR manager of Tesco enables to maintain great employee relations, but it still needs to improve these relations, because Tesco’s different competitors also takes different productive steps towards developing effective relations of employees. In this situation, it is very necessary to HR department of Tesco to adopt and implement some strategies. For example; department can make health and happy work culture, because this type of work cultures always motivates people or employees to happily work within workplace (The Role of HR in Employee Relationship Management (ERM), 2020). Hr department can improve communication skills of people, because these skills helps in removing different conflicts and errors between employees and employers etc. The management have to understand that, effective employee relations contributes in retaining talented and skilled employees in workplace for the long time period. CONCLUSION On the basis of findings, it can be concluded that top-level management of Tesco have to properly understand the actual concept of SHRM. Strategic human resource management will support to this retail business for systematically managing different employees or human resources in workplace. SHRM enable to company for taking huge and very productive work from all people. It can be also concluded that, here is great relationship between business strategy and human resource strategy. Some major theoretical basis and models of SHRM also has been discussed above in this report. On the other side, performance management and reward aretwomajorpracticesofTesco’sHRdepartmentwhichcontributesinbuildinggreat employment relations. Role of some key actors also has been mentioned above in this report in building appropriate employee relations.
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