Current Trends and Developments in HR Strategy for Tesco

This document discusses the current trends and developments in HR strategy for Tesco, a retail organization operating worldwide. It explores the impact of external and internal factors on HR strategy, theories and concepts of strategic HRM, and the use of change management models. The document also highlights the importance of monitoring and measuring HR outcomes for sustainable performance and growth.

UNIT 21 - STRATEGIC
HUMAN RESOURCE
MANAGEMENT

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
Current trends and developments that influence an organization’s HR strategy.........................3
Both external and internal factors influence HR strategy and practice.......................................4
Theories and concepts relating to the growth and development of strategic HRM.....................6
Change management models support HR strategy......................................................................7
HR outcomes can be monitored and measured............................................................................8
Effective HR management and development can support sustainable performance and growth
...................................................................................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Human resource is a very important department in an organization so that the internal
factors and standards of the company can be maintained. There has to be good hiring and
maintenance of the employees of the organization so that there is going to be effective working
of the company in the market. Tesco is belonging from retailing industry which is having its
headquarters in London and has been operating since 1919. The company is having more than
450,000 employees in the organization and is serving worldwide which is a great factor for the
organization. The report is going to consist of the external and internal factors which are
impacting the practices of human resource so that there are going to be effective strategies and
measures which the organization can take in the market. There are also a lot of trends and
changes coming in which requires the measures and theories to be changed in the organization so
that there would be higher performance. There has to be good monitoring and control on the
workforce of the organization so that there is going to be effective changes and productivity and
operations of the organization can increase so that the profitability can also improve.
Current trends and developments that influence an organization’s HR strategy
Tesco is having a lot of technological changes since they are belonging from the retailing
industry and the organization wants to expand them in India which is a great competitive factor
which the company can gain. There are a lot of changes which have come in the retailing
industry and since India is having a lot of competition in the country already therefore it is
important for the organization to be able to make the right decisions which is going to make the
company have a strong base for themselves (Rehman and et.al., 2020). India is a developing
country which is why the organization must expand them which would make the market share
and profitability of the company increase rapidly.
 Paid time
There are laws and regulations which are for the employees which means that they have to be
paid according to the working hours they are putting in the organization which is going to reflect

on the satisfaction level of them as well. The employees are going to be motivated and the
costing is going to be good for Tesco as well which is going to make the profitability increase.
 Recruitment
The quality of the products and services has to be maintained in the organization so that the
organization will be able to have a higher market share rapidly. The trends of recruitment are
also changing and to be able to expand in India the company will have to hire potential
employees so that there is going to be effective working which would be present.
 Variable bonuses
The employees are demanding for bonuses and incentives so that they can make the company
have well satisfied workforce so that the profitability of the organization can be present and
compete with the other competitors. The culture of Tesco is going to get impacted because of
this HR strategies so that there is going to be making the organization have changes which
employees might not be ready for. The efficiency in the operations in India is going to reduce
which may impact the competition in the market so that there is going to be better bonuses and
incentives for the employees (Jalloh and Jalloh, 2016).
 Workplace diversity
There are a lot of opportunities which Tesco can have in India since the laws and regulations
in the country are going to have all types of community opportunity in the country. The
strategies of HR in the country will have to be moulded according to the cultural values and
beliefs and the background of the employees as well so that the company does not have any
negative impact on the profit margins. There are a lot of policies as well which are going to get
impacted and the costing of the company is also going to changes which needs to be adopted by
the organization so that there is going to be effective working which would be present.
Both external and internal factors influence HR strategy and practice
The human resource has to work according to the internal factors and external factors
which is going to have a great influence on the working of HR in any organization. There are a

lot of laws and regulations which are put out by the government of each country and it is
important for the organization to be able to understand them and implement them. To have
higher customers and profitability the per capita income of them is higher which means the
organization will be able to have the pricing of the products accordingly. Demands in the country
is also going to be higher because of the population in the country and they have to be matched
so that there is going to be loyalty of the customers which is going to be present (Elrefaiy, 2020).
The technological aspect is being worked upon by Tesco so that they can continue to have a
strong portfolio for themselves in the market so that there is going to be higher brand image in
the market of India. Environment of India is not favourable in a lot of locations which is why the
regulations of the government have to be followed by Tesco by not using a lot of resources and
disposal of wastage in the country has to be maintained. Following these governmental policies
is going to make the company have a strong place for themselves in the market. Example, Tesco
has a good control and experience on the taxation policies which is going to make the pricing of
the products accordingly and the HR is going to take care of the operations and the changes in
culture and other aspect so that there is a good balance which can be found.
There has to be high satisfaction of the employees and customers of the organization with
the functioning which is taking place in Tesco. There is going to be a lot of planning of the
objectives and targets which the company has to achieve and with the help of Human resource
the organization will be able to have a good market for themselves as well. Human resource will
have to take care of the policies and regulations which are being followed in the organization so
that there is going to be effective working which is going to be present. The culture in India is
going to be different than the one in UK which is why the human resource will have to make
sure that this factor is being maintained so that the company does not lose their strength while
expanding themselves in other countries (Demir, 2016). Example, Tesco, who is having a strong
portfolio in UK because of their productivity and matching the demands of the customers has to
be well maintained in India as well so that the company is going to have a good stability which is
going to make the organization have higher functioning. The company has a reputation and
brand image and they are not going to harm that in any way and HR has to make sure that it is
well maintained for higher performance.

Theories and concepts relating to the growth and development of strategic HRM
There are a lot of methods and concepts which are present in HRM of Tesco which is
going to make the company be able to achieve their goals and objectives. It is important for
Tesco to be able to achieve their goals and objectives on time because the competition in the
retailing industry in India is high therefore taking the right measure at the right time are
important. In the further report there is a discussion on the two theories which are being
implemented by Tesco’s HRM so that they can have good functioning and operations (Hamid,
Muzamil and Shah, 2020).
 Performance management
There has to be good and effective performance management for Tesco to be able to expand
themselves in India because they are going to be a new organization and to compete effectively it
is important for the company to be able to make a place for themselves in the market of the
country. The employees have to be treated right which is there has to be no discrimination in the
organization and clarity of working has to be present which is going to make the employees be
able to match the expectations and standards of the company. The employees who are being
hired in Tesco should have experience and knowledge about the products and services of Tesco
so that the company will be able to maintain their standards and reputation in the market in the
other country as well. The performance is going to be effective if the human resource of the
organization is going to be involved and are going to take responsibilities to be able to make the
firm be able to operate effectively and have a good internal working in the business.
 Rewards
Tesco has always been right when it comes to maintaining the employees in the organization
because they have the right methods to motivate the employees from time to time. Rewards,
incentives, bonus, etc are methods which are being used by Tesco from time to time so that they
can make the employees of the organization be well satisfied which is going to make the
organization have higher performance (Barney and Mackey, 2016). Tesco is thinking of
expanding in India and incentives are a very good method which Tesco can use for the low
wages employees to get the maximum. The company is going to have a lot of profit and to make
the employees give their best in the organization is also good for the reputation of the

organization itself. There are a lot of employees who are giving in their best in the organization
and if they are going to be rewarded for their efforts then they would repeat their actions which
are going to be good for the performance of the organization in the market.
Change management models support HR strategy
There are a lot of changes which are going to take place in the working of Tesco when
they expand themselves in India. There has to be good models and strategies which the
organization must use to be able to operate effectively in the country (Gupta, 2020). There are a
lot of competitors in the market already therefore it is important for the company to be able to
compete with the competitors effectively and for that the human resource will have to make sure
that the human behaviour and performance in the organization is matching the standards and
reputation of the organization so that there are going to be higher performance which is going to
be present.
Lewin’s change management model
Kurt Lewin came up with a model for getting in changes in the organization effectively
by using the right measures and standards in the organization. There are three stages which
Lewin came up with so that the organization will be able to have a good structure for themselves
and there is going to be higher performance which is going to be present for the organization to
have. The human resource of Tesco is also using the three stages since the changes cannot come
in the organization rapidly and needs time to come within.
 Unfreeze
There is a set mentality which the employees in a organization have and it is difficult to be
able to change that because the employees are comfortable working in their comfort zone. With
the changing time there are going to be a lot of improvement in the organization which will have
to change as well so that there is going to be higher attitude, values, satisfaction of the employees
which is going to be present. Changes are just introduced by the HR in this stage and discussed
upon with the employees so that the changes can come in according to them.
 Change

The changes are got in slowly and very indirectly by the human resource management with
training so that they will be able to make the employees feel comfortable. Employees are the
backbone of the organization which is why it is important for the company to be able to operate
in the market according to them so that they will be able to make the organization have higher
productivity and profitability in the market (Lewin’s change management model, 2020). Changes
are important in Tesco so that there is going to be good working and the organization will be able
to benefit from this factor as well. Slow changes can still be implemented in Tesco and improved
upon as well according to the employees so that there are going to be higher involvement and
acceptance of them.
 Refreeze
There has to be lesser pressure on the employees so that they will be able to be retained in the
company and also will be giving in their personal best as well. After the changes are
implemented in the company and the employees are in acceptance of it then the organization
must freeze them so that the changes are going to be permanent which is going to be good for the
reputation of the organization as well in the market (Agolla, 2018).
HR outcomes can be monitored and measured
There are a lot of measures and methods which can be used by the HR to be able to
monitor the employees which are working in the organization. It is important for the human
resource to monitor the employees of the organization because they are the backbone of the
organization and if they are not going to give in their best then the company’s reputation is going
to get affected.
 Profit per employee
There are employees who are dealing with complain and satisfaction level of the customers
and they have to be monitored as well by the human resource department. The working of all the
employees is very different from one another and they all have to be evaluated in the
organization so that there are going to be higher performance which is going to be present. The
employees are trained to give in their best in the organization so that the standards and

expectations of the business can be achieved. Profit is what Tesco wants to be able to invest in
the further plans and structure which the organization is having for them to be able to operate
effectively in the market (Handrick, 2019).
 Job satisfaction rate
The employees are working in Tesco from years which are a great factor for the company
because the standards are being matched by the organization. There is a certain kind of way in
which the company has to work so that there is going to be effective working which is going to
make the company have a good functioning and a maintained reputation. The employees who are
working from a long run are going to have a lot of benefits which is going to be very good for
the company as well because higher the job satisfaction the employees will want to give in their
personal best as well (Gupta, 2016). Organization is giving their best to the organization by
providing them good environment and good safety measures to function therefore it is the
responsibility of the employees as well to give in their best in the organization.
 Overtime percentage
There are a lot of employees who are working very hard and giving in overtime to the
organization so that there is going to be better performance. There are changes which Tesco is
adapting but that is not going to come in with just training and development of the employees but
some of the workforce are putting in extra hours in the company to be able to make the
organization be able to expand them (MICHEL, 2019). The company is making higher revenues
and performance is increasing amongst the competitors in the market which is another factor
which the human resource management will have to monitor so that there is going to be a fair
treatment for all the employees.
 Revenue per employee
The employees are giving in their best and they have to be motivated for the hard work they
are putting in but they have to be monitored closely by the human resource department. The
department has to be fair to all the employees therefore it is important that they are observing all
the employees effectively. The staff which is in direct contact with the customers are going to be

monitored on this strategy by the human resource which is revenue which their customers are
getting in Tesco which is a great method to be able to evaluate the employees in the organization.
Effective HR management and development can support sustainable performance and growth
Tesco is having a very good human resource management in the organization which is
going to make the organization have higher performance and operations in this competitive
market. The industries in the market are increasing therefore they have to explore a lot of other
fields as well to be able to compete effectively and give the best of services to the customers.
Human resource has to adapt to those changes effectively so that there is going to be good
functioning which is very important for the company to have for a long run in this market. There
is effective working which is present in Tesco which is a great factor for the organization to have
in the market because other organizations are trying to get a competitive advantage like Tesco
(Wood and Kispál-Vitai, 2017). It is due to experience that the company has been able to have
such a strong place for themselves in the market which is a great factor for the organization to
have. To have sustainable performance there has to be good understanding and trust which needs
to be present between the human resource and employees of the organization so that right
decisions and measures can be taken which is going to impact the performance overall.
There are a lot of objectives and goals which Tesco is having in the market and they have
to be achieved so that there would be higher performance and brand recognition in the market.
The company is trying to make the portfolio very strong so that the company will be able to take
more risks for the future planning (Qadir and Agrawal, 2017). Organizations have to make the
most of the resources and workforce they have in the market so that they will be able to gain a
competitive advantage which is a very good factor for the organization to have. The goals are
going to be achieve slowly therefore the human resource divides the goals for the employees in
such a manner so that the pressure of work is not felt by anyone which is going to make a huge
impact on the working. Human resource will have to adapt to measures in order to be able to
operate but has to create a bond with the employees as well which is present in Tesco making the
company have a strong working of the internal factors. Training and development has to be
provided to all the employees and fair treatment as well which needs to be present for the

employees to give in their best which is going to be beneficial for the organization overall
growth (Kataoka, Morikawa and Takahashi, 2019). The company has been able to develop on a
lot of factor which can impact the working of the organization which would help in the
competitive advantage as well which is increasing and getting a strong market share is very
essential in the market.
For having sustainable working in Tesco there has to be good effectiveness of HRM
which has to be present so that there are right employees which are coming in the company. The
recruitment is in the hands of this department therefore they use the right method and measures
while they recruit the employees in the company. There has to be good performance and growth
of the company has to be present in the company which is going to be very good for the
reputation of the organization. There are a lot of changes which come in Tesco and they have to
be adapted by the employees and to make sure that this process is happening smoothly the HRM
provide the employees with right training so that they would be able to have the right
functioning.
CONCLUSION
From the above report it can be concluded that the competition in the market is increasing
due to which the organization will have to get in a lot of changes themselves to be able to
compete in the market. Human resource is going to be supportive in the firm to get in those
changes according to the standards and reputation of the organization in the market and the
company will be able to work effectively in the market so that there are going to be higher
outcomes. The companies in the market invest a lot and human resource has to make sure that
the company is matching the standards to that so that the changes are going to make the brand
image of the organization in the market increase. There are going to be a lot of measuring and
evaluation of the methods which the HR is using as well which is going to be required by the
organization in order to be able to get in the changes effectively which is going to be very good
for the reputation.

REFERENCES
Books and Journals
Agolla, J.E., 2018. Modelling the relationship between innovation, strategy, strategic human
resource management and organisation competitiveness. African Journal of Business
Management. 12(14). pp.428-438.
Barney, J.B. and Mackey, A., 2016. Text and metatext in the resource‐based view. Human
Resource Management Journal. 26(4). pp.369-378.
Demir, K.A., 2016. Strategic human resource management of government defense R&D
organizations. CrossTalk. p.25.
Elrefaiy, M., 2020. Strategic Human Resource Management.
Gupta, A.D., 2020. Strategic Human Resource Management: Formulating and Implementing HR
Strategies for a Competitive Advantage. CRC Press.
Gupta, M., 2016. An empirical study on fit between strategic human resource management and
business strategy. International Journal of Management Research and Reviews. 6(2).
p.102.
Hamid, Z., Muzamil, M. and Shah, S.A., 2020. Strategic Human Resource Management.
In Handbook of Research on Positive Organizational Behavior for Improved
Workplace Performance (pp. 260-275). IGI Global.
Jalloh, A. and Jalloh, A., 2016. The Effects of Motivation on Employee Performance: A
Strategic Human Resource Management Approach. International Journal of
Management Sciences and Business Research. 5(12).
Kataoka, T., Morikawa, K. and Takahashi, K., 2019. Strategic Human Resource Management
Simulation Considering Work Elements, Skills, Learning and Forgetting. Procedia
Manufacturing. 39. pp.1633-1640.
MICHEL, S., 2019. Strategic Human Resource Management (EM054M5V). Human Resources.
Qadir, A. and Agrawal, S., 2017. Human Resource Information System (HRIS): Re-engineering
the Traditional Human Resource Management for Leveraging Strategic Human
Resource Management. MIS Review. p.41.
Rehman, K.U and et.al., 2020. The Mediating Role of Trust and Organizational Commitment in
the Relationship between Strategic Human Resource Management and Knowledge
Sharing. Iranian Journal of Management Studies. 13(4). pp.565-586.
Wood, G. and Kispál-Vitai, Z., 2017. Strategic human resource management–concepts, practices
and trends. Strategic human resource management—an international perspective.
pp.83-84.

Online
Handrick, L., 2019. Top 39 human resources (HR) metrics & how to calculate them. [Online].
Available through: < https://fitsmallbusiness.com/hr-metrics/ >.
Lewin’s change management model, 2020. [Online]. Available through: <
https://www.mindtools.com/pages/article/newPPM_94.htm >.