Benefits of HRM Practices for Employers and Employees

This document discusses the benefits of HRM practices for employers and employees in improving productivity and profitability. It covers topics such as selective hiring, performance-based compensation, training and development, and more. The document also highlights the strengths and weaknesses of recruitment and selection approaches in Tesco, a UK-based supermarket and groceries retailer.

HUMAN RESOURCE
MANAGEMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
LO1..................................................................................................................................................3
Purpose and function of HRM.....................................................................................................3
Strength and weaknesses of recruitment and selection approaches.............................................4
LO2..................................................................................................................................................5
Benefits of the HRM practices for the employers and the employees........................................5
Effectiveness of HRM practices for the organisational profit and productivity..........................6
LO3..................................................................................................................................................7
Positive Impacts of Employee Relations on HRM Decision-Making.........................................7
Key elements of employment legislation and its impact on HRM Policy.................................10
LO4................................................................................................................................................11
Application of HRM practices in work-related context............................................................11
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Human resource management refers to the strategic approach for effectively managing
the human resources, i.e. people of the organisation and aims at boosting the motivation and
performance of the employees. Recruitment and selection is a primary function in HRM which is
designed to manage employee strength and involves processes of sourcing, sending invitations
and information regarding job vacancies, screening, shortlisting and selection of the right
candidate for the right job. The selected organisation is Tesco plc, which is a UK based
supermarket and groceries retailer as well as general merchandise retailer headquartered in
Hertfordshire, England (Bailey and et.al., 2018). The project report will aim at analysing the
strengths and weaknesses of approaches to recruitment and selection process of Tesco. The
report will highlight the HRM practices of the company and its benefits to employees and
employers. The internal and external factors affecting employment legislation, employee
relations and decision making will be evaluated.
LO1
Purpose and function of Human Resource Department
Tesco's HRM plays important role in talent management and recruitment. It's HR hire
workers according to their experience and talent and hence more and more Talented and skilled
workforce can be employed in the organization. After selection and recruitment, proper training
and development programs introduce to increase quality, efficiency and productivity of the firm.
There are various similar other function of Human resource manager such as Performance and
Management, Career Planning and Function evaluation and employee’s relations.
Training and Development
Training and development has a important role in creation of skilled and talented
employee's in Tesco. After hiring, HRM of the organization gives different training related to
work and it helps employees in increasing their potential. HR Team also check performance of
employee's and needful training will be given to the person if require. This program helps firm in
gaining competitive advantage in the market.
Recruitment and Selection
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Tesco's Human resource recruit and select potential candidates for the work. They assess
different workers profile on job sites and filter it according to requirement. After short-listing,
HRM take interviews and exam and final candidates will be hired for the job. This help
organization in gaining potential workforce which will impact on growth of the firm. Company
also has reference system in selection and recruitment for example employee's reference
candidate will be given first priority. This system helps company in gaining loyalty of old
workers.
Performance Management
After selection and recruitment HRM has to analysis performance of workers for
appraisals, awards, rewards, incentives, increment and promotion. Tesco's HR manager use
various tools for performance measurement of employee's such as KPI, 360 degree feedback etc.
Company has dual benefit from this activity of HR for example It can focus on personal growth
of the employee's as well as require training will be given to poor performance workers. This
helps in achieving higher goals with skilled and talented staff and also increase loyalty of
workers by focusing on their personal growth.
Employee's relations
Employee relations refer to the efforts of the company in managing the relationship
between the employers and the employees. HRM of Tesco focus on personal growth of the
employee's which ultimately contribute in development of the organization. HR manager also
take feedback and suggestion in changes as well as in Training and development programs from
workforce. Human resource time support employee's overcoming from depression and isolation.
For example, the HRM monitors the relationship among the employees and also allot them the
tasks which can be performed by being in a team which shows their coordination and
collaboration with each other. It also ensures that each employee must support the other instead
of opposing each other's views.
Strength and weaknesses of recruitment and selection approaches
Tesco Human Resource team use both internal and external recruitment in hiring of the
employee's. It helps in exploring more skilled workers (Santhanam, 2017). This recruiting
system helps firm in gaining loyalty of old employee's and also they get amount for it which
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impact on personal growth of workers. New employee's helps in promoting cultural diversity and
also increase creativity and innovation in the organization which enhance quality, efficiency and
productivity of the work.
External recruitment:
Strength:
 It helps Tesco in gaining new ideas from experience workers of different organization.
 Organization has multiple option in selection of workers. It increases chances of hiring talented and skilled workforce.
Weakness:
 It takes lot of time in selecting candidates from different job sites.
 Increase cost of Tesco in advertisement, finding, checking background etc.
Internal recruitment:
Strength:
 Fastest method for selection of the candidates and also an employee's much familiar with
the referred candidate.
 Decrease expenditure of advertisement and other process of recruitment of Tesco. Same workers within the organization can be transfer and promoted for higher roles.
Weakness:
 It decreases chances of hiring talented and skilled workforce.
 Company fail to achieve innovation and creativity at workplace.
 Decrease good-will of the organization and unable to maintain diversity of the Tesco.
Selection: normally the selection process is on the basis of the tests and interviews.
Strength:
 It is very easy to compare for the employees.
 It is very quick process.
 helps in finding out the suitability of an individual. It reduces the labour turnover ratio.
Weakness:
 The tests are may not be used properly by the individual.
 Due to the fear of the exposure, some people do not submit their tests.
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 In some cases the tests are unreliable.
The Tesco uses both internal and external recruitment in order to gain a pool of candidates and
also to motivate the existing employees and to develop a sense of competitiveness among them.
The HRM of Tesco also manages to conduct various interviews and tests in order to know more
about the capabilities of the individuals. There is no kind of biasses in the recruitment in
selection process at Tesco.
LO2
Benefits of the HRM practices for the employers and the employees
The HRM practices like providing security to the employees, selective hiring, self-managed and
effective teams, performance based compensation, trainings and many more have their own
benefits which helps the employees as well as employers in many ways. For example, if the
performance based compensation is effectively implemented in Tesco, it will motivate the
employees to perform better in order to make more money and it will also benefit the employers
as they will not be dilemma to provide the appraisals. This will remove the biasses and also
creates a sense of trust among the employees and employers.
HRM practices are very much beneficial for the employers and the employees of the Tesco. The
HRM has the responsibilities to keep and maintain the healthy working environment within the
employers and employees of the organizations. The benefits are as follows:
Conflict resolution: The HRM practices like fair compensation and selective hiring helps in
reducing the conflicts in the organization. The conflicts in Tesco are mainly resolved by its HRM
by taking a quick and correct decision.
Employees: HR plays an important role in resolving the disputes and conflicts among the
employees. The HR maintains the proper discipline in the organization and also keep the
employees aware about the policies and procedures. They involve themselves in resolving the
disputes of the employees. The HR also train the employees about the disciplinary action to be
followed.
Employers: This helps the employers as they do not have to face the negative effects of the
conflicts and the HRM of the company tries to solve the issues. The employers can focus more
on increasing the productivity rather than resolving the conflicts.
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Training and development: The HRM organizes training and development programmes in
which the employers and the employees can enhance their skills and perform their respective
tasks in a much better way.
Employees: HR is beneficial in providing the training to the employees of the Tesco. The HR
organizes the different training program for the employees. Training helps them in improvement
in the qualifications. Providing training to them helps HR in getting more qualified candidates
(Riaz, 2020). This process is less expensive and more effective for Tesco. This helps in retaining
more candidates.
Employers: The training programmes also helps the employers as they gain the skills to hire the
employees effectively after considering all the aspects. Certain training programmes enhance the
skills of the employers which makes them able to perform the tasks in much better way.
Satisfaction: the HR is specially having the responsibility of the employers and employee’s
satisfaction. More satisfied employees and employers can help in increasing the productivity and
improving the overall environment of the organization.
Employees: The HR organizes different surveys for determining the satisfaction level of the
employees and employers. If the employees or employers are not satisfied, the HR makes efforts
in finding out the reasons for the dissatisfaction and also motivates them with the innovative
solutions. The HR also looks towards the problems of the staffs and guide them whenever
needed.
Employers: The employers are being benefited by HRM practice because due to the more
satisfied employees, the productivity increases as the employers get a positive feedback. This
increases the satisfaction of the employers as well.
Improves performance: In Tesco, HR practices helps the staff in improving the performance, as
it provides an appropriate training to the staff.
Employees: It is impossible to perform the different task without HR, because HR helps in
improving the skills and capabilities of the employees. HR practices are required in the
workplace. HR always keeps an eye on the performance of the staff.
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Employers: Employers are benefited as they do not have to focus much on increasing the
performance of the employees as the HRM organizes various trainings in which the employees
can enhance their relevant skills.
Therefore, the HR practices are beneficial for the employees and employers of the Tesco,
as they provide many trainings which helps in improving the working skills of the employees
and employers. It also laid emphasis on the satisfaction of the employers and employees.
Effectiveness of HRM practices for the organisational profit and productivity
The HRM practices are effective for the organisational profit and the productivity in many
ways. They are as follows:
Conduct an employee survey: the productivity can be increase by an employee survey. There are
large number of online programs that helps in creating the survey. In the survey the questions are
asked according to the relevant to your company’s offering, but the organizational goals are
uncovered, it hinders the productivity of the employees.
Inventory of physical environment should be taken: HRM in Tesco works for the welfare of the
employees and the organisation as well. It also takes care of all the issues of the employees
which creates obstacles in performing the task. For example, the employees can be badly hurt by
the bad lighting in the workplace. So, it is there responsibility to resolves the issues which can
affect the performance of the employees by making them feel more comfortable. The HRM can
try to change the lights or adjust the windows such that the light can be enough to work flexibly
in the workplace.
Consider offering flexible work option: it has been observed that, people doing work from home
are more productive. The HRM at Tesco mainly focuses on providing the work which can be
done easily by the employees involving the work from home (Keegan, 2018.). This helps the
employees to balance their work life along with giving better outputs along with increasing the
productivity. HRM can be proved helpful as it helps the employees to work without stress, with
full concentration, determination, dedication and attending some meetings virtually. It also
makes the employees motivated thereby increasing their engagement in each and every task of
the Tesco.
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Technology and tools: tools and technology play a very important role in the Tesco. It is
necessary to update the tools and technology of the company. Nowadays, technology is growing
very fast in every year (Rozario, 2019). Updating the technology plays an efficient role in the
productivity of the Tesco. Technology is the most useful for the improving the productivity and
profit of the company.
Support creativity and innovation: it is important for the employees to set up the goals and
expectations, to provide innovation and creativity. When the creativity of the employees gets
limited, the productivity of the Tesco company also gets decreases. Creativity is important for
the employees, because if the employees will be creative, it might be able to produce more and
also enhances the sales of the company. The innovation and the creativity of the employees can
boost by the accurate training and incentives. The employees also need the guidelines and
guidance for the creativity and innovations. Too much creativity may lead to the lack of
direction, which may result in minimizing the production of the Tesco.
The HRM practices in Tesco have certain advantages and disadvantages which are as follows:
Selective Hiring: The HRM of Tesco implements this practice by selecting only the qualified
and skilled employees in order to increase the productivity of the organization.
Advantages: It helps in improving the quality of the employees at the workplace which can
increase the overall profitability and can help in bring the innovation in the company.
Disadvantages: It also demotivate the candidates with average performance as they are not
trained. By giving them training, the company can give them an opportunity to prove themselves
but by selective hiring, they get rejected.
Fair and Performance Based Compensation: This practice is implemented by the HRM of
Tesco by providing compensation to all those employees who perform better than others.
Advantages: It benefits the hard-working and dedicated employees as they are provided the
compensation according to their performance.
Disadvantages: It demotivate the employees who cannot perform better which decreases the
employee retention of the company and thereby decreasing the goodwill.
Therefore, it can be concluded that the HRM plays the vital role in increasing the profit
and productivity in the Tesco by improving the health condition of the employees thereby
making the workplace better place to work. But the performance based compensation can be
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proved to be the best practice as the determined employees gets the compensation in the form of
paid leaves, holidays, fewer works etc. which can motivate others to work in much better way.
This will increase the overall productivity thereby profitability of Tesco.
LO3
Positive Impacts of Employee Relations on HRM Decision-Making
Employees play the major role in any company because their performance decides the
progress of the company. Tesco also focuses on hiring talented and skilled employees in order to
improve the productivity and customer-base. As, the employees are a source of the knowledge
required for the business, it is important to involve them in taking its all decisions (Alam and
Raut-Roy, 2019). Human Resource Management works for the welfare of the employees to
facilitate them regularly with all they need such as resources, rewards etc. and to the welfare of
the company by hiring the best employees.
As one employee is not able to decide the whole progress, they must be grouped into teams to
obtain the best results by building stronger relations with each other. The good relations among
employees not only helps in empowering them in contributing to the organization’s success but
also helps the company to save money and time to increase the reduced outsourcing and the
productivity. Tesco finds various benefits of Employee Relations with respect to decision-
making of HRM:
 Increased Employees’ Loyalty
When the employees build strong relations with other employees, they think twice before
leaving the jobs which helps the Human Resource team to gain the retention of the employees.
This makes the environment of the work place such that the employees feel comfortable and
motivated to work in by becoming more dedicated using whole skills and talents towards
achieving the goals. So, HRM in Tesco keep a tab on the employees and their relations so that
they contribute positively towards the success of the business. The HRM also gets motivated
enough to encourage the employees to perform their task effectively to get satisfactory results.
 Fewer Conflicts in Workplace
The main reason behind being unsuccessful in any business is the happening of conflicts
between the employees which hinders their performance (Awadari and Kanwal, 2019). This can
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be due to the distinctions between the employer and the employee also. So, Good Employee
Relations fills this gap making the workplace free of conflicts. The HRM in Tesco must also take
unbiased decisions in order to reduce the conflicts. Employee relations can also be helpful in
enhancing the goodwill of the HR team because HRM manages all the issues related to
employees. On the other hand, Good Employee Relations gives a sense of pride and satisfaction
to the HRM.
 Improving Confidence and Trust
Good Employee Relations are must for building trust and confidence among themselves
and the other departments of the organization. It can facilitate both the employees and the
employers as the employees follows the path built by the employers. The company Tesco makes
several efforts to improve the relations among the employees and employers as well. The HRM
becomes confident as the employees hired by the HR team works efficiently by cooperating with
each other.
 Making the workplace better
The most important factor for improving the performance of the employees is the
environment of the workplace. The responsibility for making the culture of workplace better lies
in the hands of the employees (Zarqan and Sukarni, 2017). This can help the HRM in Tesco by
performing effectively in hiring the skilled employees and making available all the required
resources to the employees. Strong employee Relations plays the main role in improving the
environment of the workplace thereby motivating the employees to work with more enthusiasm
and confidence making the customers more satisfied.
 Work-Life Balance Enhancement
There must be balance between the personal and the professional life to give efficient
performance in both. Tesco observes 2 different cases regarding this. When the employees work
in a friendly environment having good relation with everyone, this makes them stress free and
makes easy to handle their personal affairs also. On the other hand, the employees who work
under pressure, they become frustrated and cannot give them 100% to their personal life. Having
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good relations at this time will help the HRM to handle the personal and professional life of all
the employees thereby balancing their work-life.
 More Engagement of Employees
The stronger the relations between the employees, more participation of employees. The
strong employee relations help the HRM in Tesco by engaging more number of employees in
the jobs (Bailey and et.al., 2018). The employees must participate in all the activities of the
business to increase their motivation and reducing the fear. They must also make attempts to
try every task whether difficult or easy which will increase their confidence to perform the
jobs.
This can be analyzed by the work culture of Tesco that the employees perform the task
collaboratively which increases the oyalty among them which also helps in increasing the
productivity. This also helps the HRM to make the decisions as good relations among the
employees cannot result in the conflicts. Employee relations also helps the HRM in decision
making as all the employees engage in the same and helps in coming to a significant conclusion.
The employees work in a coopeative way which results in less conflicts and more creative ideas.
This gives a positive feedback to the HRM regarding the employees they selected. The HRM of
the Tesco strives hard to maintain an effective relationship between the employers and
employees. This increases the loyalty of the employees and motivates them to perform
effectively.
Therefore, the employee relations in Tesco helps the employers, employees and specially the
Human Resource Management in enhancing the employees’ performance and the overall
progress of the organization.
Key elements of employment legislation and its impact on HRM Policy
Employment litigation protects employee’s rights in the organization such as equal
wages, proper working hours, and discrimination policy. This litigation framed by the
government and pass it as act that has to follow by Tesco. There are number of act passes by
British government such as Employment Rights Act, Equal Pay Act, Sex Discrimination Act,
The National Minimum Wage Act, and The Disability Discrimination Act etc. Before framing
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any policy related to man power of the organization or hiring employees in the organization,
HRM must compiled this laws in job letter or in organization policy. This litigation influence in
decision making for example if HRM framing the policy related to security of the employees
then it must follow laws such as working time regulation, equally opportunity to all in the
organisation(Male, female, LGTB). This litigation increase good will of Tesco and also increase
loyalty of employees towards organization. However, adopting such laws decrease profit of the
Tesco and extra expenditure effect on financial capacity of the organization.
Employment Right act 1999 to 2003
This act helps state that that terms and condition of employment must be given in written
to employees and also they are entitled to get minimum wages at work. Workers are protected
from unfair dismissal from the job. Tesco's Human Resource Management use this law to give
security and safety at work and hence they are able to gain loyalty of them.
The Equal Pay Act of 1970
It stated that there will be no discrimination in paying salary at workplace. Tesco's HR Manager
implement this law and it reduces discrimination and gives equal opportunity at workplace and
also increase loyalty of the workforce.
The Sex Discrimination Act, 1975
This act secure employees against discrimination in selection promotion etc. HRM of the Tesco
gives equal opportunity and hence able to increase, efficiency, quality and productivity.
The National Minimum Wage Act, 1998
Law gives guarantee that all workers must given minimum wages decided by
government. Tesco HR us this provision in the firm.
Elements related to employees’ litigation is listed below with impact on decision making of
HRM.
Equal Employment Opportunity:
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Performance assessment of employees by HRM of Tesco and according to it, give
opportunity to all without bias to one or favouring HRM has to remain neutral when analysing
data of performance of employees and provide it to senior.
Affirmative actions:
When HRM framing policy for providing resource or opportunity in Tesco, it avoid
affirmative action’s such as focusing on employee’s nationality, sex, religion, and caste.
Sexual harassment:
HRM policy must protect employees from any sexual harassment in Tesco. Before
framing any policy company has to ensure security of the employees in the organization.
Working time regulations:
HRM must provide clear details about working time, leaves and termination condition to
avoid any misunderstanding among employees. HR have to follow government rules and
regulation related to working time for example in Tesco UK use employees for 8hours*5days
and hence protect employees’ rights. Adopting and framing such laws by HRM increase good-
will of the organization and also increase loyalty of employees towards the organization.
Wages and remuneration:
HR of Tesco must provide clear details about salary and incentives in case employees
work hard or over time. This kind of policy avoids miss conception about cutting and increment
of wages in the organization.
Working Condition:
HRM has to frame policy to increase friendly environment in the organization for
example sports activities, refresh zone etc in the organization decrease stress of employee and
increase quality, efficiency and productivity.
Trade Union and other Industrial relationship:
Company has to follow instruction of trade union such as not employed blacklisted
employees by the union in the organization and hence before employing any worker in the
organization trade union laws must follow.
Welfare, safety and health:
Human resource management must provide facility such as health benefits of employees
in contract or insurance (Aleksynska and Eberlein, 2016). These types of Policy help the
employees in times of accidents or health issues.
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LO4
Application of HRM practices in work-related context
In order to select the talented and skilled employees, the HRM of Tesco provided advert
for specific job role which makes the candidates aware about the requirements of the company
and the level of skills they need in order to fulfil their requirements. The implementation of HRM
practices is necessary in order to select the most qualified person who can perform up to the
expectations of the company and helps in increasing the productivity and profitability. The ways
in which Tesco HRM implements its practice of Recruitment and selection for HR manager is as
follows:
Advert for HR Manager
Tesco, being well-known group of retailers dealing in food and non-food products in UK which
is also world’s 3rd largest retailers is looking for an HR Manager for its business units in UK and
across the county (Liebregts and Stam, 2019). The company will offer attractive packages.
REQUIREMENTS
Gender: Female
Position: 1
Age: 22-35 years
Qualification: M.BA. or B.Tech. in Computer Science
Experience: At least 2 years.
Skills: Communication, Decision-Making, Organizational, Development and Training, budgeting
and empathetic.
Job Description
HR Manager
Reports to: The HR manager will report to the manager of the company.
Job Overview: The HR manager mainly focuses on plan, implement and evaluate the relations of
employees and the policies and practices of HR and the organization (Rozario, 2019). It also has
to update the requirements and the description of Jobs for every position in the company.
Responsibilities and Duties:
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 The person at this position implements the benefits of employees by conducting surveys,
programs to inform the employees about fulfilling their needs.
 Organizes many sessions and training programs for the process of recruitment, interviews
and counselling which benefits the employees as well as organization.
 Plans, monitors and appraises the results of the job by contributing the efforts of the team
to obtain the desired results.
Qualifications:
Education Level: MBA or Bachelor of Technology in Computer Science.
Experience: At least 2 years.
Specific Skills: Confident, Fluent in English, Ability to take decisions quickly, Ability to Read,
and Leadership.
Personal Characteristics: Honest and good sense of Humour.
Certifications: PHR or SPHR.
Licenses: PAN card and Driving License.
Physical Abilities: Able to sit, walk, write, hear and talk, vision abilities.
Offer Letter
13 August 2020
Tesco plc.
U.K.
Dear employee,
The company feels pleased to offer you the position of HR Manager. This position requires
working full time almost 48 hours a week. Your initial Annual Salary will be £35749 (Average
Human Resources (HR) Manager Salary in United Kingdom,2020).
As you will work full time, you will get benefits package of standard company like Tesco. You
are requested to work from 20 August, 2020.
If you accept this offer for the mentioned position, the company will appreciate your signing and
request you to return at your earlier convenience. The enclosure with additional details is
attached along with it. If you have any queries related to procedures and policies, do not hesitate
to contact us.
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Manager,
Tesco plc.
U.K.
CONCLUSION
From the above report it can be concluded that recruitment and selection are important
aspects of Tesco plc. The various functions of HRM was evaluated for Tesco including
workforce planning and resourcing and it resulted in provision of appropriate skills and talent to
fulfil business objectives. The importance of various HRM practices such as staffing,
compensation management, staffing, performance evaluation and employee motivation was
elaborated. The benefits of Hrm practices are conflict resolution, improvement in productivity,
training and development, high motivation levels and job satisfaction. The HRM practices in
Tesco are effective , and include conducting employee survey, considering flexible work options,
inventory of physical environemnmt, supporting creativity and innovation and tools and
technology. The positive effects of employee relation include increase in employee loyalty,
fewer conflicts in workplace and improved trust and workplace. The significance and influence
of employee relations and employment legislation upon decision-making of Human resource
management was evaluated in organisational context, which included laws of equal employment
opportunity, affirmative actions, sexual harrrassment, wages and remuneration, working
conditions, welfare, health & safety etc. The application of HR practices to emphasise the
necessity of creating advertisement for the job role, job description and offer letter was
elaborated. Few recommendations for better HRM practices are providing better opportunities,
recruiting talent effectively, better usage of talent management approaches, focussing on
retention, building trust, being a problem solver and keeping the lines of communication open for
employees.
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REFERENCES
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Online
Average Human Resources (HR) Manager Salary in United Kingdom,2020. [ONLINE].
Accessed through: <
https://www.payscale.com/research/UK/Job=Human_Resources_(HR)_Manager/
Salary>
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