Purpose and Functions of Human Resource Management

HUMAN RESOURCE
MANAGEMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
LO 1 PURPOSE AND SCOPE OF HRM.......................................................................................3
P1 Purpose and Functions of Human Resource Management.....................................................3
P2 Various Approaches to Recruitment and Selection................................................................5
LO 2 Effectiveness of the key elements of Human Resource Management...................................9
P3 Different HRM practices........................................................................................................9
P4 Effectiveness of different HRM practices............................................................................10
LO3 Impact of internal and External factors on HRM decision making.......................................11
P5 Significance of Employee relations......................................................................................11
P6 Elements of Employee Legislation and its Impact on HRM decision-making....................13
LO 4...............................................................................................................................................14
P7 Application of HRM practices in Tesco...............................................................................14
CONCLUSION..............................................................................................................................17
REFERENCES..............................................................................................................................19
Online........................................................................................................................................19

INTRODUCTION
Human resource management can be defined as the process of organizing, planning, coordinating
and controlling large group of people in the company. Human resource managers plays
significant role in the business such as recruitment-selection, reward-punishment, employee
retention, training and development and others in the company. The mission statement of the
Tesco Inc. is to “we make what the matters better, together”. The core purpose is “to develop
value for the customers to earn their lifetime loyalty” (Core Purpose and Values, 2020). Human
resource management has goal such as to improve productivity, growth and operations of the
business in the business market. To understand role of human resource management has an
example of Tesco plc. It is an MNC company which runs its business in domestic and
international market so it faces various issues while dealing with dynamic business environment.
But organization posses’ different and effective capabilities and deals with dynamic business
environment effectively. It is headquartered in UK and posses’ wide product line. This report
will provide understanding over purpose of human resource functions and its key roles and
responsibilities in the Tesco plc.
LO 1 PURPOSE AND SCOPE OF HRM
P1 Purpose and Functions of Human Resource Management
The main purpose of HRM is to encourage the environment of the workplace such that the
workforce can perform well in order to increase the productivity by increasing their knowledge,
skills and capabilities. In order to increase the competency, the HRM also organizes various
training programs which helps in enhancing the skills and abilities of the employees (Bailey and
et.al., 2018).
The HRM of Tesco mainly deals in providing the services to its customers according to their
demands. The company keeps a regular check on the changing demands of the customers in
order to fulfil maximum of them making the customers and the employees satisfied. The
implementation of all the strategies are depended on the HRM.
Tesco, being the largest among the multinational companies in the retailer industry in UK and
third largest in the world perform its operations worldwide.

The mission of Tesco is to make its customers satisfied by fulfilling their changing demands. It
wants to become the champion of the customers by helping them to live a better life (Core
Purpose and Values, 2020).
Functions of HRM
Human resource is basically the employment management in order to gain a competitive
advantage with the help of strategies made by highly talented and skilled workforce (Malik,
Pereira and Budhwar, 2017). It performs numerous functions but the major functions as observed
in Tesco, UK are as follows:
 Planning: The main role of HR is to know about the needs of the organization and the types
of people needed in order to perform well to achieve the organizational goals. By knowing
these, it performs the other functions of recruiting and selecting the employees along with
managing their performance.
 Recruitment and Selection: This is the major role played by the HRM to attract the
individuals for working in the organization along with choosing the best ones. Tesco do not
face any problem in attracting the individuals because of its good reputation that forces every
person to work for it. Nowadays, Tesco is using advanced technologies like Social
networking sites in order to gain a pool of talent. It then selects the best and highest-potential
candidates.
 Managing Performance: The HRM ensures that all the employees engage themselves in all
the activities and tasks an enhance the productivity (Zarqan and Sukarni, 2017). In Tesco,
this is done by reviewing the performance and taking feedbacks from the managers,
colleagues, customers etc. According to the performance, the HRM builds the future
workforce and provides learning to the employees whose performance is not upto the mark.
 Rewarding: The HRM is also responsible for giving regular rewards to the employees for
performing well even in the small tasks. This keeps the employees motivated and encouraged
to do better the next time. Tesco rewards its employees by giving incentives, bonus, some
easy tasks, flexibility in work hours and sometimes new good colleagues.

 Industrial Relations: The HRM also ensures good relations with the employees and among
the employees which is must for enhancing their performance in order to increase the
productivity and making the environment of the workplace better. Tesco believes in making
the workplace friendlier and comfortable. This helps it to spot the conflicts if arises and
resolves it soon.
 Employees’ Welfare: This is the main responsibility of HRM to implement regulations
regarding the health and safety of the employees. In Tesco, it is forbidden to walk the stairs
holding the railings which are implemented by its HRM. It also listens to the employees’
personal problems by supporting them in the form of various benefits.
P2 Various Approaches to Recruitment and Selection
There are many methods used by the companies in order to recruit and select the best
employees in terms of skills and talents. Tesco focuses on the following approaches having its
own strengths and weaknesses:
 Internal Job postings
This is a method when a job position is opened by the hiring manager for the employees who
already work in the organization. Majority of the organizations focus on this as the existing
employees are already aware of the policies of the company.
Advantages: It helps in increasing the morale of the employees and gives them the opportunity
to become advances in the same organization. It helps in reducing the cost of hiring.
Disadvantages: It increases the competition among the employees and can lead to biased
selection process too. It can even result in conflicts among them due to some employees
promoted and some not.
 Employee Referral Programs
This is the internal method of recruitment in which the HRM makes the proper use of the
existing employees. In order to improve the hiring process, the employees are brought together
becoming the ambassadors of the company (Solutions and Belt, 2017). This encourages the

employees to bring the most talented and qualifying candidates from their social networks
thereby saving the money of the company and increasing the productivity.
Advantages: It eliminates the problem of advertising for positions and just focus on reviewing
the resumes which also saves money. It also helps in improving the employee retention because
of the commitment they have given to their near and dear ones. This will not make the company
face the problem of lacking the talent instead it will bring only those employees which are
considered best according to their friends who already worked for a long time improving the
morale.
Disadvantages: This is proved to be a loss to the company as if one employee is fired then the
employee which referred it also leaves the job as a protest against the firing. This also leads to
limited ideas and opinions. The HRM will not be able to extract the new ideas and views. If can
even reduce the employee morale if the hiring manager becomes unable to select the candidate
which is referred.
 Online Job Boards
The HRM also focuses on exposing the job opportunities through Online Job Boards. These
are generally the websites referred to as Job Banks which allows the employers to advertise for
the vacant positions in the organizations. These are used by the candidates who are in need of
any job (Alam and Raut-Roy, 2019). In Tesco, these are used in more advanced way to receive
and manage applications which enhances the recruitment and selection approach for candidates’
qualification.
Advantages: These gives many options to the recruiters as thousands of people post their
resumes on these sites in search of jobs. This becomes more convenient approach as the manager
can post a job anytime anywhere if having the internet connection and easy for the candidate too
to apply for the certain positions anytime from anywhere. It also helps the companies in
improving the brand image by creating innovative profiles to attract the brimming talent.
Disadvantages: It sometimes becomes time-consuming increasing the chances of unqualified
applicants. It also needs a complete research to choose the perfect board which can help the
company to hire the desired candidate. It also needs the support of other approaches. This does
not provide guarantee that the hiring manager always finds the qualified and talented candidate
and at the same location as well.