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: