Strategic HR Planning: Tesco Case Study and Analysis (BSBHRM602)

This assignment delves into the realm of HR strategic planning, using Tesco as a practical case study. It begins by emphasizing the significance of an HR strategic plan and the crucial information required to formulate it, including the need for clear objectives. The assignment then presents a detailed PESTLE analysis of Tesco, examining the political, economic, social, technological, legal, and environmental factors impacting its HR strategy. Further analysis explores future labor needs, skill requirements, and potential sourcing strategies. The impact of new technologies on job roles and design is evaluated, along with a review of recent and potential changes in industrial and legal requirements. The assignment also addresses the importance of HR philosophies, team manager engagement, and effective communication through meeting agendas. Furthermore, it discusses key HR objectives, the advantages and disadvantages of internal and external HR service options, and the role of technology in HR, including social media, cloud services, and mobile apps. The importance of senior management support and risk management in HR are also highlighted, providing a comprehensive overview of strategic HR planning and its practical application.

Activity 1A
1.1 Why is it important to have a human resource (HR) strategic plan?
Today human or employees are the most important resource for any company. Existents of a
company completely depend on its employee. To survive in the competitive market manager
should acquire conceptual strategy and skills. That is why the HR manager needs to adopt up to
date technique of HRM so that the low level of employee’s performance can be elevated and
their good performance will lead to an increase in business performance.
1.2 What information do you need in order to determine the HR strategic plan?
It is important to assess the existing staff capacity such as assessing the talent which
organizations already have and develop skills inventory for each of the employee. After ensuring
the full inventory of employee, HR requires to forecast their future requirements to improve
productivity. In this HR has to recognize the future demand in terms of employee’s quantity and
quality. Quality is the ability or skills required for the task. Then HR has to determine existing
talent who can meet the target and hire more required resource that can meet the requirements.
Then HR needs to match the supply and demand of these resources. After assessing the current
capacity r has to make strategies to develop employee’s skills and talent.
1.3 Why is it important to have clear and specific HR strategic objectives?
Clear objectives of business help to create directions, motivate employees, helps to set a budget.
That objective helps to evaluate the overall performance of Employee and organization and also
helps to build effective project plans.

1.4 Give an example of a clear and specific HR strategic objective.
One of the goals is to conduct training and development program. And its objective is to improve
employee talent and develop job skills and productivity also develops leadership capabilities.
Activity 1B
It is essential for HR to analyse all the internal and external factors which can affect the business
as it helps to be ethical and maintain compliance. It also helps to update technology advancement
in the organization. Accurate environment analysis can have a major impact on the strategic plan
for a business. Once HR identifies opportunities and threats, it will be helpful to make
appropriate objectives which will help to achieve success of the Tesco.
HRM Pestle analysis of Tesco
Political Factors: Tesco Plc provides more jobs and contributes to a decrease in unemployment.
Government of the UK has revised tax tares for companies to 18%. For this increased tax rates
the company has to create pay structure for employee according to the rates. There are some
other political factors that can impact such as freedom of the press, Trade, and Tariff, interest
rates, consumer protection legislation.
Economical factor: With this analysis, the company can better cooperate with the worldwide
recession and increment in unemployment. The HR department has to consider the UK’s current
minimum wages to create a new pay structure for the employee, AS it rises to 7.83 from 7.50.
Stage of the business cycle, unemployment, labour cost and impact of the globalization are the
several other factors which can affects.
Technological factor: How current technology works and how they need to be updated so that
employees can have a better training session and develop their skills. Utilizing better technology
and programs such as EPOS and several others will help to make a better web-based training to

employees. Technology access and licensing, transportation energy and technology legislation
also affect the Tesco business and HR functions.
Legal factor: Tesco has to change its employment policies and has to update its maternity leave,
paternity leave, and minimum wages according to UK laws and regulations. The company also
needs to pay attention to replaced Equality Act2010. Under this act, every company needs to
make discriminations free environment for its employees at the workplace. Employment laws,
data protection regulation, human rights, labour rights are mostly impact the business.
Socio-culture factor: The population of the UK recorded approximately 65.6mn in 2016.
Around 70% of populations are under the age of 60. This has implications in the labour market
and there are a lot of opportunities for Tesco to hire young and talented people. Several more like
society’s living standards, ethical view, and media laws and other cultural factors can have
impacts on the HR strategy and Tesco's business performance.
Environmental factors: The government of the UK introduced a new strategy to cut waste,
reduce consumption of resources and decrease environmental damage. Tesco has to train its
employee to contribute to these environmental approaches. Workforce’s attitude, management
style, employer relations, customer and stakeholder values affect the business as well.
Activity 1C
There are some key questions that should be considered while assessing the future labour needs:
Quality, Type, Competency, Number
And consider:
 Location- Transport, distance
 Career path- To retain great talent
 Succession planning- Long term planning

Workforce planning involves major questions first is to develop and analyses those data which
identify the future HR requirement. This will involves all data such as future gaps and surplus in
HR inventory, diversity statistics, turnover rates and causes, health safety statistics and employee
opinion survey result. The second is to develop responses to identified needs. These responses
might be actions plans or need to develop a special program.
There are several internal and external sources of labour supply.
Internal: Upgrading the skills, promoting, IJP (internal job posting)
External: Advertisement, Employment exchanges, and universities.
Activity 1D
Tesco has launched a new technology “shop and goes” which is a mobile app and utilized by the
customer to pay for their products. After using this technology the customers does not need to
visit the store, and Tesco has to cut its stores across the world. As a result, the company had to
cut the job roles for unskilled labour such as storekeeper. While at the same time Company
requires skilled labour for this process such app developer and other IT skilled labour, and also
develop jobs opportunity for marketing operations such as delivery boy and other rolls.
Activity 1E
UK government changes have changed some employment laws such as employees needs to show
the working hours where they pay varies, and also the company has to issue payslip all the
workers who are working in the company at any designation. Apart from that penalty for the
company to breach for human rights is increased from 5000 to 20000. Changes in law bring

chaos in the company and the HR department needs to be careful that no one can force labour to
works for extra shift and human rights law changes leads to decrease breaches for human rights.
Activity 2A
HR philosophies and preferences reflect how organizations’ work culture. The team managers
are only who has assumptions and beliefs about the nature and the work ethic of the employees.
How staff members are treated is a reflection of these assumptions and beliefs. With the
development of the HR strategy, it is essential to engage relevant team managers and should
discuss the new policies and philosophies to support the implementation of the strategic plan.
These policies and philosophies will be influenced by the needs of relevant team managers and
business strategy as well.
There are some methods which can be used to consult with the manager:
 Design and deliver a questionnaire
 Group sessions
 Analyse response and develop policies
Activity 2B
Meeting Agenda
Title: view of organizations values and HR philosophy
Date: 07/05/2019
Time: 1.30: 3.30
Locations: VC room
Read: Policies and rules, report from last meeting

Carry: Meeting report form
Time: Introduction:
1:30-1:50 Organizational philosophy and vision
1:50-2:20 HR philosophy
2:20-2:50 Planning
2:50- 3:10 HR sourcing policies
3:10- 3:30 End meeting and scheduling next meeting agenda
Activity 2C
Objectives are:
 Diversity and equal opportunity
 HR information system
 Employer employee relationship
 Roll analysis and design
 Performance development
 Professional management
 Rewarding
 Employee retention and succession planning
HR aim is to retain and remunerate talented and diverse labor force to help an organization to
efficiently meet the objectives of the organizations. The department establishes value by
implementing HRM process, employee development, building a better work environment and

manage the change. One of the objectives is to develop the skills and capability of the employee
in order to improve organizations’ business performance.
The HR needs to be priorities these:
 Recruitment strategies: Hiring new employees with the future required skills and abilities.
 Outsourcing strategies: Using an external source to complete the task.
Activity 2D
With appropriate examination and consultation of options of HR service, the company
Have good options for the cost of delivery and also benefits which can be realized.
Here some advantages and disadvantages of internal and external options:
Options Advantages Disadvantages
External consultant
This can be used to
carry to a wide range
of Hr services
involving recruitment,
training development,
job design, corporate
relations, and support.
It is not cost effective in a small
type of organizations also not
required to utilize HR specialist,
thus their specific ability can be
purchased when required.

Outsourcing
This is an effective
source as HR can
outsource when the
organization needs it
without the cost
burden.
However, only limited services
can be outsources
Internal HR service
The advantage of
having its own inner
HR arrangement is
that needs can be
resolved and
controlled for person
individuals from staff
and the HR workforce
will have an inside and
out information of the
association and its
individuals which
In any case, there might be
difficulties related to interior HR
staff keeping their aptitudes and
information cutting-edge in spite
of the fact that this ought not to be
an unconquerable test.

outer suppliers are
probably going to
need.
Internal non-human
HR service
These approaches are
helpful in associations
which utilize vast
quantities of
individuals,
conceivably in various
areas.
Automated administrations have
the upside of speed and cost-
viability; however, they do not
have the capacity to deal with
non-routine issues.
This works in limited number of

Merging business units
This may improve
systems and forms and
diminish duplication
process such as training,
development, HR advice.
Activity 2E
There are three major technologies for HR, which helps most are Social media, cloud service,
mobile apps.
Technologies Advantages Disadvantages
Social media
More than half of the
populations and job seeker
uses media source such as
LinkedIn, naukari.com and
Facebook. HR can use this
source to recruit people.
However, there is a lot of
fake information contains
these websites.

Cloud service These cloud services provide
solutions for collecting data
and many others.
However it is costly to
implement such services.
Mobile apps
In today’s world, many
organizations have launched
their own mobile app to give
better services and home-
based service
This process leads to cut the
inventory of human resource
and organization requires
skilled labour.
Activity 2F
Support of senior the board to HR help accomplish the association's general arrangement'. It is a
key device for controlling crafted by the HR work throughout the following time frame what's

more, it bears consolation that the HR work is attempting to help conveyance of the in general
corporate objectives.
• Working with every single ranking director to pick up a personal and nitty-gritty
comprehension of the corporate objectives.
• Gaining senior administration's contribution to characterizing the HR logic and
estimations of the association
• Listening to ranking directors' HR inclinations
• Requesting ranking directors' sentiments and exhortation with respect to issues
concerning the HR plan.
Activity 2G
There are several factors which pose HR risk such as 
• Decrease in sales
• Financial complications
• Products and service issues
• Replacing the new equipment
• Legal complications
• Supplier’s issues and problems
• Issues related to workforce
These issues seriously hinder HR operations and organizations performance. Here are some
points which can be minimized these challenges in HR:

• Clear and explicit administration level understandings to set out what is to be
Conveyed, how, when, to what standard
• Customary and suitable observing to guarantee the administration level
Understanding is being met
• Conveying the utilization of money related/different punishments or motivating
forces for tasteful conveyance.
Activity 3A
The strategic plan involves HR personnel, team manager, senior team lead, workforce
representative group, suppliers, and external agencies.
The manager has to be clear about:
What they need to do, by when, in what budget, with which standard and what would be the
objectives.
Activity 3B
Monitored and review the arrangement is a significant advance in its usage. A gigantic measure
of exertion goes into delivering the arrangement but there is a genuine peril that underlying
eagerness for actualizing it melts away rapidly after it has been affirmed.
The steps which have to be taken to review the plan:
 Have task done according to the plan
 How errors affect the plan

 How to rectify errors
 The budget has been followed
 What new actions are taken and their implications.
Activity 3C
Implications of HR strategic plans:
• Change in the direction in the association's key arrangement
• Availability of more up to date, better, more practical innovation, frameworks,
and procedures.
• An unexpected change in the enactment or industry prerequisites
• Closure of outsider HR administrations supplier
• The unexpected disease of outer temporary worker/specialist
Review and monitor the HR plan will empower changes in conditions, for example, these to
become known so choices can be made to re-arrangement if fundamental. The sooner that
changes in conditions are distinguished, the sooner move can be made to adjust the arrangement
likewise. This may include a total survey of the arrangement, practically beginning back at the
planning phase. Notwithstanding, it is more reasonable that changing conditions will result in the
association returning to the possibilities that have just been distinguished before in the vital HR
arranging procedure and it ought to be a generally direct advance to modify the plans and after
that proceed with the general usage

Activity 3D
Evaluation and Review help to recognize that plans are accurate and feasible or not. It assessed
objectives are achieved or not, our budget and decline have adhered. And give access to learn
what worked well and what is not. The report is timely progressed to senior team or not.
The evaluation includes some data such as individual leaves, training, and promotions and how
many times he comes late to the office and several others.
Section A Skills activity
1. Three factors to consider strategic plan:
• It will accomplish business needs or not.
• Is it developed on detailed analyses of organizational functions?
• Are it incorporated, being made out of parts that fit with and bolster each other
achieved and what is still left to do? There is a clear proportion of
accomplishment which can be accounted for and broke down.
2. Here are some key elements of the HR strategic plan of an organization:
• Aligning the organizational needs and human resource requirement
• Evaluation and measurement of organizational and staff performance
• Effective organizational and design of policies and programs which helps to
develop a strategy
• To establish a safe and effective culture among employee and an organization
3. There are four key steps of cost-benefit analysis:

Identify and categorize cost and benefits: It is essential to label cost and benefit as direct,
indirect tangible or intangible and requires being transfer so that the effect of cost and benefits
can be measured.
Place all cost and benefits in the unit: It is required to place all cost in the same unit and all
benefits in the same unit.
Compare cost and benefit with each other: This allows checking the quality of estimations and
assumptions. If the answer is positive during this process, then the balancing point can be
calculated.
Make recommendations: Evaluate all outcomes and record for other subjective contemplations.
4. Changes in legislation that could affect Tesco
• Change pay-slip policies: the UK government has passed two law changes first is an
employee is required to show the working hour and as per the new law Tesco has to change its
pay slip policy and needs to create a policy for limited working hours. The 2nd policy is needed
to issue every individual of the company.
• New penalty: the UK government has one more change in respect of employment law.
Increment in the penalty rise from 5000 to 20000 for labour right’s breaches. The HR department
of Tesco needs to assured of no labour rights should be breached.
• Disability and reasonable adjustment: EAT provided some useful guidance for the
company on how the commitment to make sensible alterations ought to work.
5. Here is the 5 question for Tesco when reviewing a strategic plan:
• What are the current situations of the company? What is troubling the
business?

• What were the previous decisions that led to the current situation whether it is
good or bad?
• What were the previous objectives and are they achieved partially or
completely?
• What is the current objective?
• Are they feasible to company or not?
Section B: Knowledge activity
1. HR strategy is all about planning for what a company wants to do to manage HR, make
policies in order to set a new goal. These strategies basically set to improve the company’s
HR policies and establish a safe environment and develop employees and organizations
performance. General methodologies portray the general framework or heap of the
corresponding HR rehearses that the association proposes to embrace or puts into impact so
as to improve hierarchical execution. There are three approaches to make HR strategy.
2. Employment law: Employment law is the rules and regulations which are made for
employees and it drives the relationship between employer and employee. Employment law
describes the workers’ rights. Every company needs to follow these laws to sustain
employee.
Human rights: every company should follow human rights for its employee. For instance, in
many organizations, there are many issues such as harassment at workplace is the major
problem. Organizations need to have looked at such policies while making HR policies.
Trade union: Trade union is a union of the workers which formed to achieve employees
demand at the workplace. These factors highly affect any organization.
3. Here are five common options for sourcing labour.

• IJP (internal job posting)
• Campus placement
• E recruitment
• Management consultants
• Organizations
4. List three aspects of work that are being affected by new technology.
Save money and time: By implementing new technology Tesco can save money and time
also as most work gets automated by utilizing new technology systems.
Employees and organizations productivity: New technologies will affect employee and
Tesco’s business performance. It impacts with both negative and positive impacts. Tesco has
to spend more funds to implement new technology and employees have to adapt skills to
work with new technology.
Jobs rolls: New technology reduces jobs as most work can be done by software. With
efficiency, new technology has overpowered human effort. For instance, Tesco launched a
mobile app to pay by using app customer can pay for service by sitting at home. This
technology affects job rolls.
5. List five potential objectives/targets which a strategic plan is required to address.
Here are five objectives an HR strategic plan has for Tesco
• Succession planning: according to this objective Tesco has to ensure that the company’s
labour force is able to meet the future HR needs. To achieve this goal, leaders in Tesco work
together in evaluating the current workforce’s qualities and skills.

• Workforce Mobility: It is another form of development. It helps to trained employees for
cross-training, which helps an employee to understand and develop skills to work in another
department. Unable to understand your point on this.
• Building coordination and better relationship: One of the objectives of the strategic plan
is to make better employee and employer relationship. Better relation with the staff member
lead to create friendly work environment into the organization.
• Leadership management: HR experts constantly review the progress of the higher
management team. Team managers are responsible to manage the team by being fair and
ethical and they often set a role model for its employee. It is essential for the Tesco that it’s
higher management team affectively directing their employees and create safe fair work
environment and set a role model.
• Employee training and development: One of the objectives is to train employee so that
they can develop their skills and adapt to the new technology system. Conducting training
sessions for employee develop their skill increase the productivity of the organization, so that
the personal and organizational goals and objectives can be achieved.

Section C: Performance Activity:
(1) Report
Introduction
Tesco is the UK’s leading brand in the retail sector Headquartered in England UK. There is
many functions are of the company and HR is one of them. HR department’s purpose is to
establish a safe work environment and deliver improvements.

Tesco HR operations
Assessing Capability of Future needs: Tesco needs to recognize that its staff capacity is able to
meet the future requirement of the business. Staff’s quantities are sufficient for the company’s
task and also assessing what are they able to work with a new technology whose skills are will
meet the expectation in the future.
Objectives of HR strategy
Assessing Capability of Future needs: Tesco needs to recognize that its staff capacity is able
to meet the future requirement of the business. Our staff’s quantities are sufficient for the
company’s task and also assessing what are they able to work with a new technology whose
skills are will meet the expectation in the future.
Workforce mobility: This is to develop their employee’s skills by giving them training and also
cross-training so that they can perform in other departments as well.
Employee engagement: How to engage employees and motivate them to contribute to employee
engagement. Employee engagement such as birthday parties and other events can bring
employee together.
Rewarding system: good changes Rewards system motivates employees to perform well. What
Tesco has to do with the reward system so that staff gets motivated to contribute well?
Three tends that could affect HRM
Market competition: Market competition can affect Tesco HRM. For instance, if other
companies paying more than Tesco as result employee will join other company as they pay better
than Tesco.

New technology: New technology affects HRM. Tesco in 2000 has introduced online grocery
stores. By immersing this technology due to market demand Tesco had to cut many job roles.
Changes of government laws and other legal changes: Change in governments impacts HRM,
such change in the minimum wage and other laws affected company’s HRM such as Brexit
brings many changes in Tesco such as higher price and poorer quantity at the supermarket.
Three types of relevant technology
Here are three types of technology which can impact HR
Cloud services: many cloud-based services provide solutions for HR which provides solutions
for HR activities. Tesco also using such services to store employee data.
Mobile app: Tesco has launched software BYOD It is an application for store supervisor
representatives to download, login and keep an ongoing record of stock dimensions and
accessibility by basically examining an item's scanner tag or side-rack mark and it pulls through
helpful, exact data to guarantee workers are getting items back in stock when they go out.
Performance appraisal technology: Tesco utilizes these systems for many benefits. This
system contains many HR functions and helps to get access to employee’s data.
Recent industrial and legal changes
Gender pay gap reporting consultation: According to this law, the employee can report where
they found any inequality incident and unequal pay. HR strategy needs to consider this new law
and provide equal pay structure.

Executive pay-gap reporting in force: All the companies which are the UK listed and have
more than 250 employees have to report on pay- gap between their average worker and chief
executive. The HR department of Tesco has to consider this law.
Three skills requirements for future
Positive attitude: The Company requires those labour who carry positive attitude for any
situations. This will help in future to stay optimistic in a difficult situation.
Teamwork: Teamwork skills will help to work in a team and achieve a common goal. The
company have huge operations every department has many employees, therefore Tesco requires
those employees who can work in a team.
Self-management: There are skills involves initiative, organization, and accountability. Tesco
motivates the employee to make their own decision; also Tesco requires labour with leadership
skills, who can manage others as well.
Three options for sourcing labour
IJP (internal job posting): Tesco has a larger network across the world and has many stores
work many employees working. The company can hire internally when required.
HR consultancy firm: These agencies work as a third party and hire people on behalf of the
main company. Tesco can also hire an employee to meet future needs.
College placement: The company can hire through college placement this one is a useful source
as the company can hire those skilled people which company requires most.

Conclusion
Planning and the advancement of an HR system is a basic piece of the HR procedure. It is
significant that all HR procedures and activities are created as a major aspect of a general people
methodology which is lined up with, and intended to aid the accomplishment of, the hierarchical
technique and objectives. Tesco has to consider all the factors that need changes and also
consider future needs to make an effective HR strategy, which lead to the success of the
company.

(2) Gantt Chart
Gantt chart: Gantt chart is a type of bar chart which illustrates HR strategies and objectives. Here
is the Gantt chart showing the HR strategy of the Tesco. It also shows a process of the HR
functions.
Here is the chart showing Tesco 6 month of HR strategies.
WBS
Task
and
activitie
s Jan Feb March April May
Jun
e July
Augus
t
1 Budgeting
1.1 Resource cost
1.2 training cost
2
Top three
priorities
2.1 Recruiting
2.1.1 Internal
2.1.2 External
2.2
Trainin
g
2.3 Remunerations
3 Performance appraisal
4 Risk Management
5 Industrial

relations
(Source by author)