HRM, Leadership, and Organizational Performance: A Tesco Case Study

This report provides a comprehensive analysis of Human Resource Management (HRM) and leadership within Tesco, a leading multinational retail company. It begins by exploring various HRM models, including the Harvard and Warwick models, and their application in managing HR resources effectively. The report then delves into Tesco's HR functions, such as recruitment, training and development, and performance appraisal, highlighting their roles in organizational success. It also discusses the importance of HRM software programs and their benefits to the organization. Furthermore, the report identifies and examines the characteristics of an effective leader, contributing to the overall understanding of leadership's impact on organizational performance. Through this analysis, the report aims to provide insights into how Tesco manages its human capital and fosters effective leadership to achieve its business goals.

Managing Human Capital
& Leadership

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK 1............................................................................................................................................3
HRM models and approaches to Manage HR resources........................................................3
Task 2...............................................................................................................................................6
Discuss organizations HR function .......................................................................................6
Task 3...............................................................................................................................................9
Number of HRM software programs and benefits to organization .......................................9
Task 4 ............................................................................................................................................11
Characteristics of effective leader .......................................................................................11
CONCLUSION ............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Human resource management is one of the important function of a company, that mainly
focuses on recruiting, selecting, hiring and managing employees at workplace. This function
also plays an important role in familiarizing employees with organizational working environment
by providing them appropriate training. It helps in development of teamwork for overall success
of organization at a large scale. Tesco is a British multinational company provide grocery and
general products to their customers. It is considered as one of the leading companies in retail
sector which has long chain of supermarket in UK and across its territorial boundaries. Variety
of products provided by this company like clothing, books, petrol, telecom and financial services
help them to earn a competitive advantage in market and attract more customers. Report will
discuss different model of HRM that help organization to achieve goals easily. It will cover
effectiveness of various HR functions. Study will describe characteristics of effective leader.
TASK 1
HRM models and approaches to Manage HR resources
The aim of HRM models is to help companies to manage their workplace in the effective
manner, so they can achieve set goal of business (Aust, Matthews and Muller-Camen., 2019).
HRM management is defined as appropriate concept which includes two approaches in
development of organizations. Hard approach which is Human Resource management focus on
the performance management and the emphasis it puts on the instrumental approach to the
management of the workers. The key feature of the hard approach is to have the major level of
linkages in the corporate business planning along with having short term changes in the
employee number. This approach has the minimal level of communication along with little level
of delegation of empowerment at significant level. On the other hand the Soft approaches
majorly focus to motivate employees, empowerment, and create a trust among employees of the
company. HR model is combination both soft and hard approach in developing the company at
significant position. It is important for the Tesco to have better level of implication in
development of particular approaches, so they can increase employee performance and motivate
them to achieve goals of the company. Tesco have the major level of implementation of soft core
approaches in more way to have developmental of employee along with motivating them
towards the organizational goal and personals developmental in significant manner.

The Harvard Model
The Harvard Model is used by organizations as it is considered to be most influential and
significant in Human resource management. This model was introduced in 1984 by Michael Beer
at Harvard university. There are 5 important components of this model – stakeholders interests,
HRM outcomes, situational factors, long term consequences which is implemented by Tesco to
have the proper set out to accomplishment in human resources' management. In this model the
soft core practices in been implemented by Tesco by have proper shape to the HR polices.
In this framework, the relation between situational factors and interest of stakeholders
strongly affect the relationship by giving proper shape to HR polices of Tesco. (Buller and
McEvoy., 2016). In this approach the company have the treatment of employees as the major
important resources for the development of company in more way to gaining the competitive
level of advantage over competitor in market.
It is important to produce HR outcomes such as congruence, commitments, cost-
effectiveness etc. this model will nurture motivational practices and corporation and empowers
the companies manger to get involved in the HR aspects of the Tesco business. The Harvard
Model is necessary of the Tesco because it helps to give significance competitive advantages to
the company employees of the company are valuable person in the company, so they should not
be treated as valuable assets rather than the cost. They implement this strategy in their business
system which effect the behavior of the staff, and they get result in the performance of the
company. According to this model performance of the Tesco is Totally depended on the
performance of the people engaged in the process and guided by the companies purpose and
principle of the company. The soft hrm policies such as the measurements of important focus
point are there such as the need of employees along with providing them proper level of training
and motivations in order to have commitment and participation in evaluating goals and objective.
They use this model as a tool for the long- term continuity and progress of their business, and
they operate this tool with the same components.
In this model there is major level of participation i the along with motivation and greater
level of productiveness which helps in maintaining the company's employee collaboration,
enhance cooperation, enthusiasm and work of the staff, so encourage employees can achieve
maximum performance from them, reaching the competitive advantage. TherE is existence of the
major level of weakness as there is large level of cost is incurred by Tesco in order to have the

development of skill as per raining, wage increases, the support staff to work. There is major
level of delaying decision-making for the synthesis of the opinions of employees, management.
The Harvard model have the application of Harvard model with major application inf developing
the skill of employee in more significant manner and contribution major productivity of business.
The Warwick Model
The Warwick Model is another important models of Human resource management which
was developed by the Andrew M. Pettigrew and Chris Hendry in the 1990s at University of
Warwick. This model was developed from the idea of Harvard Model and this model represents
an analytical approach of the Human resource Management. This model has five different
elements which are similar to the components of Harvard Model. The outer context which
includes competitive factors such as political factors, technological factors in the inner context.
This has major impact on the leadership, Task technology and structure of Tesco company
(Nayak and Ganesh., 2018). This models also helps to make strategy of the business and helps to
achieve objective of the company, product marketing and general strategies as well. In the
context of Human resource management of the company Warwick Model will helps to define
role and definition and provide HR outputs.
After the implementation of this model in the workplace of Tesco it will improve
implement activities such as reward system, work system etc. with the application this mode in
term of sift management practices company have the major level of implementation of the
transformation leadership which is having maximum contribution in developing skill and
innovation among the employee. The employee is developed with flexible level of workings
hours in order to have increase in there in innovation practice last significant level. The company
have the major focus on Change agent, employees advocate, strategic partner. Rather, then the
focus on the functions and processes, concerned with the employees and people of the company
and the role they play in the ground scheme of things. This Human resource management model
emphasize on the remodeling HR does not Rely mainly on the functions of the HR. This
approach with application this model has to deliver the road map for the companies' success
which lay out the performance against a credible set of the descriptors. It will help Tesco
company to improve the performance of the employees, so they can increase their skills and
potential for the better outcomes (Chatterjee and Guha., 2019). In this framework they can also

learn the social and career planing, so they can sure abut their future and work in the company
with full of motivation.
Task 2
Discuss organizations HR function
Success of organization largely depends on effectiveness of HR policies and practices,
which are used for managing and developing workplace. Various functions and roles are fulfilled
by an HR manager such as recruitment, training etc.. The main purpose of this function is to
guide and motivate employees to work effectively in organization which helps in achievement of
goals & objectives more efficiently. HR managers helps Tesco to analyze those changes and
work according to requirements. HR function of firm works to improve organizations
performance are as follows.
Recruitment
Recruitment means hiring a right candidate for vacant position in an organization. It helps
to find talented and qualified employees for business for overall growth of organization.
(Armstrong and Taylor, 2020).. Tesco analyze profile of internal employees by identifying their
skills and abilities to fulfill vacant position and if those individuals are unable to cope up with
requirement then external recruitment technique will be used. HR managers of respective firm
also use referral process to hire employees. One of the major issue faced by Tesco in recruitment
is that it is unable to retain staff. It also uses external source of recruitment but this process is
time taking which is the major concern point for the firm. Company analyze skills and abilities
of employee from every department to promote or transfer employees on basis of those skills
which help them to get best out of employees. Internal process of recruitment help Tesco because
they know talent of every employee, help them to boost morale of employees, increase overall
loyalty of employees towards development of organization. Employees are able to adjust easily
with changing environment.
Recruitment is not an easy task where companies face the large number of problems to
get effective employees. As Tesco is facing issue of poor retention of employees.. Company
should use recruitment agencies to get the talent in the firm. This would be better in filling the
experienced and deserving candidates those who have need of job . This people retain in firm for
longer duration because they like to work with the leading firm.

Training and development
Training and development is a process to improve current and future performance of an
individual. It helps in increasing ability of both existing and new hiring employees and
developing new skills of them, so that they can perform job effectively for organization success
(Chelladurai and Kerwin, 2018). It also helps to make employees familiar with new technology
and machinery to improve overall efficiency of work. In context with Tesco, this company
mainly aims to get effective employees on right time at right place for overall success of
business. So, its HR managers provide training to develop soft skills in their employees for
overall personality development and improve their communication and other skills to make
effective relationship with customers while offering services. Due to changes in working of retail
industry, respective company provide professional training so that their employees able to work
in constantly changing environment.
Mistakes by employees is increasing day by day, employees are unable to satisfy needs of
consumers. Many employees misbehave with buyers. Staff members are not able to resolve
issues of consumers. Here is need to improve training programs so that workers can work better
in the firm. By giving them on the job training Tesco would be able to make them able with
situations that might take place in front of them. This would be better in dealing with these
problems effectively for employees hence they will be able to serve consumers well.
Performance appraisal
HR managers of a company analyze performance of each employee mainly to determine
their contribution in achievement of organizations goals. It helps companies to set standard for
employees about organization expectations. (Bratton and Gold, 2017). In context of Tesco,
performance management helps managers to place right employee on right position for
enhancing productivity of workplace. They use traditional method to analyze performance by
comparing employees efficiency with each other to give them rank according to their abilities.
The main advantage of this method is that it is easy to understand hence managers can take quick
decisions. But by using traditional methods company cannot evaluate actual quantitative
performance of employees hence it is unable to take right decision of giving appraisal to
particular person.
Tesco should use 360-degree method of appraisal to maintain and improve efforts of
employees. By using this method Tesco can be able to evaluate the performance of every person

properly and right person would be promoted to the right job. Use of reward system that means
providing incentives to workers will help in motivating them and raising their workplace
performance.
Managing employee relation
Employees are the main strengths of an organization where by maintaining a good
relation with them, help in running business efficiently for longer period. Maintaining positive
relation help organization to influence behavior of employees and engage them in achievement
of corporate goals more easily. Employee relation work as a key for organization development.
In context of Tesco, HR managers of this company use various methods to develop a positive
relation with employees (Stewart and Brown, 2019). It includes participation of employees in
decision making, which help in getting their involvement in generating new and innovative ideas
for increasing productivity and performance of business.. HR managers of Tesco provide fair
remuneration and timely bonus to their employees also to provide job satisfaction under them.
Furthermore, establishment of two way communication at workplace with help of digital
technology also aid to timely inform employees about any changes and other business related
information
Employees engagement and positive relation helps business to develop goals and
objectives more easily. Recently Tesco is facing issue of high staff turnover, people are not
finding the workplace goods as they do not share their ideas with other employees. This affect
overall working of employees badly. Tesco should conduct meetings with staff members and
have to make them ready to share their views every time. They must be empowered so that they
feel valued. This will help Tesco in encouraging workers and raising their relationship.
Motivation
Motivational practices at workplace help to get quality work from employees, which is
required for overall success of organization at a large scale (Sparrow, Brewster, C. and Chung,
C., 2016).. In context of Tesco, this company motivates its employees by developing friendly
relation with them. For motivating employees, HR managers identify employees needs and basic
requirement. Fulfilling those needs help in overall success of organization and achievement of
goals and objectives. Tesco appreciate hard work of their employees for success of organization.
Recently people are getting common benefits, need of each person is different from others.

Enterprise is unable to meet their requirement which is affecting performance of workers and
they are leaving job due to work irritation.
Currently people are not happy would work culture of Tesco hence staff turn over is
increasing in the firm. Tesco is unable to encourage people because people are not getting benefit
as per their needs. Company should provide flexible working hours so that they are able to give
time to their family and friends. This will help them in getting relaxation from this workload and
this will encourage or boost their energy.
Task 3
Number of HRM software programs and benefits to organization
Every company uses HRM software to keep the record of all the employees. These
software help in minimizing problems related to employee salaries, leaves etc. (Marchington
and et.al., 2016). It also helps organization to get information about each and every employee.
Using HRM software aid managers in keeping proper order and process of information. Some of
the software that help Tesco to manage overall work are as follows.
Human resource information system (HRIS)
HRIS help to manage policies and procedures to guide employees. Require to organize all
information in proper manner and easily accessible when required. In context of Tesco, HRIS
help company to recruit employees who have effective skills to complete a task and with help
help of software company is able to track performance of their employees more easily. It Helps
to improve workflow in organization. It Helps Tesco to train employees with better tools and
technology. Improve overall ability of every employee to attract customers more easily. Increase
collaboration of employees with organizations work environment. HRIS improve Tesco abilities
to tale important decision and provide required information to employees easily. It provides a
platform which help company to minimize efforts to recruit new employees in organization. In
context of Tesco software provide facilities to minimize efforts of HR manager to recruit new
employees and they are able to work effectively for their success at a large scale. Software help
Tesco to provide rank to employees according to their abilities and wants.
The main feature of this software is that it maintains payroll, tracking of employees,
employee benefit etc. This is the online program which supports in data integration. The main
advantage of using this software is that it gives accurate result. HR can get automated reminders

hence no issues related to salary and performance appraisal take place. It is the best software for
recruitment management.
Human resource management system (HRMS)
HRMS system help to get information about employee history, develop skills and require
for accomplishment of goals. It is system which help to save time and efforts of organization.
Provide technology and improve effectiveness of organizations goals and objectives. Analyze
areas which will affect organizations working like culture and different methods and areas for
employees(Bailey and et.al., 2018). System help to transfer correct amount of funds to workers.
In context of Tesco system help To maintain data of employees and to provide fair remuneration
and salary to workers. Help to provide accurate amount on time to employees. System help
Tesco to provide bonus and incentive to their employees on basis of their efforts and abilities in
organization. Software help to prepare schedule for employees and help them to know their shifts
in organization. In context of Tesco it help organization to fulfill all requirements like when
employees are not available in organization then HR manager mail or text other employees to
fulfill those missing shifts. In context of Tesco software help to gather and store employee
information which will require in future for overall development of employees and efforts. Help
company to prepare schedule of employees according to requirement of organization. Help to
analyze performance of employees.
This software integrates all daily HR related activities. Human resource manager can
access records and can manage leave applications, scheduling shift etc. It is easy way to measure
performance of employees and compare it with other staff members. Advantage of using this
software is that Tesco can handle HR routine task properly such as managing employees,
minimizing leave issue etc. Another benefit of this software is that HR of company can easily
create documents of all employees.
Performance management system
This is the software that is used by companies to review performance of every employee.
This is the cloud system which align all employees, manager and rest staff members. HR of firm
can export data of all staff members and can maintain spreadsheet which is used for future
evaluation of performance of employees. Companies need to track data of their employees and
software help to provide information like name, address, job title and other important certificates.
Software help to manage information in secure and easily manageable way(Guest, 2017). In

context of Tesco company need to use this software which help their workers to update their own
information and get knowledge about companies policies. It help to get up to date data to operate
efficiently in an organization.
The main advantage of using this software is that it helps in analyzing employee
schedule and issues in management of workers. It helps in sending the same email to all and
keeping close records of all the workers. It gives email reminders hence problems of employees
can be resolved quickly. Software help organization to track performance of their employees and
put efforts to improve those performance abilities of their employees and maintain effectiveness
of organization (Hecklau and et.al., 2016). In context of Tesco software help to get high
performance from employees which help to increase profitability and to grow business at a large
scale.
Tesco should implement HRIS software, as this will help the company in improving
accuracy in record maintenance. Apart from this, Tesco would be able to integrate data and
manage all the administration task effectively. Employees would be able to resolve their issue
self such as changes in address, salary slip generation etc.
Task 4
Characteristics of effective leader
Leaders help to improve sustainability of a business in market. It helps to increase
productivity and efforts of employees in development of organization and manage ability of
employees to achieve organization goals and objectives. Leader help in managing conflicts and
maintaining communication in an organization, which is required to develop positive
environment. Leader of Tesco help company to improve efforts of their employees and achieve
goals and objectives more easily. Characteristics of leader that help Tesco to improve business
are as follow.
Ability to influence others
As staff turnover is the main issue in Tesco, recently HR of company is trying to retain
staff but employees are not taking interest in working in the firm due to heavy workload. Leaders
have capabilities to make changes in decision of employees. Leader play an important role to
influence others in an organization and to maintain effectiveness of organization goals and
objectives. Leader help to influence others by developing trust with other employees. Encourage

employees to share their opinions to bring innovation for organization development(Brewster,
Mayrhofer and Farndale, 2018). In context of Tesco leader need to influence employees by
increasing their participation in decision making process in organization. Leader show their
concern towards employees and let them know that they matters for organization.
Confidence
Employees are very demotivated because they are not getting satisfactory incentives in
the firm. That is the reason that staff turn over is increasing and this issue is faced by managers
of tesco. Leaders of Tesco have to behave confident so that employees can get confident for their
future in Tesco. Confident Leader help organization to get quality work done from employees.
And to get effective work from employees leader need to be confident and influence other
employees to be confident. Leaders need to be confident on their own decision. In context of
Tesco companies success largely depends on their leaders and rules and regulations set by
leaders. Tesco leaders must behave confident and able to take important decision and maintain
effectiveness of organization goals and objectives. Confidence of leaders help them to take
important decision and require for overall success of business.
Transparency
Tesco is facing issue of poor staff support whenever enterprise makes changes at
workplace. Actually people are unable to understand importance of new changes in organization
and also they feel that company will terminate them if they fail to work better on new changed
atmosphere. Leaders have to be transparent and have to share the importance of these changes so
that employee give support them and accept these changes. Leaders need to share their feeling
and what organization want to achieve with their employees. Leaders need to be clear about
organization goals and objectives which help employees to understand those goals more easily.
IN context of Tesco leader share future plans of organization to their employees to increase their
participation in overall success of that plan. Transparency help Tesco to increase contribution of
their employees for overall success of organization. Employees in company are more engaged
with goals and objectives that they want to achieve.
Creativity and innovation
Creativity and innovation in leader help companies to compete with their competitors.
Creativity of employees help company to develop a unique image in market(Wilton, 2016).
Changes are not being implemented properly in the firm which has become the major problem