Strategic HRM Report: Tesco and Marks and Spencer HR Practices

This report offers a comprehensive analysis of strategic human resource management (HRM) practices within Tesco and Marks and Spencer, two leading UK retail firms. It begins by outlining the HR policies and practices employed by both companies, highlighting key aspects like high commitment HRM and best-fit HRM models. The report then examines external factors, including political, economic, technological, legal, and labor market influences, and their impact on HR strategic decisions. Furthermore, it delves into the delivery of HR functions, discussing the application of the Ulrich model and the role of line managers in implementing HR strategies. The analysis covers aspects such as recruitment, training, and employee relations, providing insights into how these companies manage their human resources to achieve organizational goals and maintain a competitive edge in the market. The report also contrasts hard and soft HRM approaches, offering a detailed understanding of the strategic choices made by Tesco and Marks and Spencer.

Strategic HRM

Table of Contents
INTRODUCTION...........................................................................................................................1
1. Presenting HR policies and practices in TESCO and Marks and Spencer.........................1
2. Presenting some External factor that affect HR strategic decisions...................................3
3. Analysing how HR functions are delivered........................................................................5
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Strategic human resource management is the practice of attracting and developing
employees for the benefit of both employees and company. The chosen company for this report
is Tesco and Marks and Spencer which is one of the top leading retail firms in UK which provide
the best products to their customers at reasonable rates. Report presents HR policies and
practices which are followed by the quoted firm and then describe some external forces that
affect HR strategies of companies. Furthermore, study also describes way through which
different HR functions are delivered by using Ulrich model or not.
1. Presenting HR policies and practices in TESCO and Marks and Spencer
Key stakeholders: In quoted firms, stakeholders are all shareholders, members
customers and the suppliers.
High commitment HRM (HCHRM): It is the set of practices of firm which have the
potential in order to contribute towards an organizational performance. This practices are
basically used in order to increases the labour turnover and improve employees behaviour as well
as their attitudes so that it directly helps to improve the quality and its customers service. For
example, in Tesco, the company's HR has the skills of technological planning that helps a firm to
raise its performance level (Storey, Ulrich and Wright, 2019). As it has been analysed that HR
practices are directly affect the employee attitude and their behaviours that in turn influence the
organizational performance such as:
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Training, learning and development: HR of Tesco provide proper training sessions to
their new candidates so that it will help in increasing their performance level. Through training,
they will automatically improve their production level. On the other side, HR of Marks and
Spencer uses reward and promotional techniques in order to raise the production level. However,
it has been analysed that for proper development, HR should make rewards and internal
promotional strategy.
Best Fit HRM: This model emphasizes that HR strategies and organizational strategies
should be aligned and it is quite necessary for the firm to make sure that HR strategies are
suitable in every situations with the culture and operational processes. Even TESCO also uses
Porter's competitive advantages model which is consisted of some key aspects such as:
Cost reduction: As this model states that to minimizes the extra cost of the company, the
firm uses different strategy. In the same manner, HR of Tesco uses internal recruitment method
which helps to protect firm from extra expenses. On the other side, Marks and Spencer uses
advance training method in order to raise the potential of the employees.
Quality enhancement: quality improvement is the technique which is used to remove
errors in the products which are offered to their customers (Kasemsap, 2019). For this reason,
HR of Tesco hire trainer who help them to provide training to their employees. As a result the
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Illustration 1: High Commitment HRM
(Source: High Commitment HRM, 2019 )

employee production level automatically increases. On the other hand, HR of M&S arrange
seminars and events so that employees can get guidance from them.
Therefore, it has been analysed that both the firm uses Porter competitive advantage
model in order to increases raise the competition in market and further it is considered most
suitable and best fit HRM strategy for them.
Hard and Soft HRM approach: Human resource management has frequently described
in two forms such as hard and soft. Tesco follows hard HRM approach in which it they treat their
employees as a machine and upper authority pressurise them to complete the assigned work.
While on the other side, Marks and Spencer's HR follows soft HRM approaches which
employees are the most important resource in a business and they are the source of competitive
advantages. Further, it has been analysed that the hard approach, is expected to result in more
cost effective in which the HR decisions making are quicker and also pays little attention to the
needs of the employees (Ansoff and et.al., 2019). On he other hand, soft HRM approach focus on
longer term workforce planning and even employees are empowered and also encourages taking
their own responsibility.
2. Presenting some External factor that affect HR strategic decisions
HR strategic decisions are helpful to raise the company’s performance and maximize the
sales which directly affect the company's financial position. But on the other side, there are many
external factors that also affect the HR strategic decisions and some of them are as mentioned
below:
Political factors: Both Tesco and Marks and Spencer HR decisions are affected by the
political factor. As HR planning, recruitment criteria and selection procedure is also governed by
the constitutional provisions and HRM cannot manage it because a firm has to abide by the rules
and regulations which are prescribed by the government. And if the firm is not adhering to such
type of regulations, then they have to pay fine extensively and there are a chances to shut down
the firm. Therefore, these political factors directly affect the HR decisions as well as their
planning (Chams and García-Blandón, 2019). Moreover, even after the effect of Brexit, HR of
the company should provide some training sessions which helps them to raise the performance
level of the firm .
Economic factor: It is one of the biggest external influences that completely affect the
business performance as well as their HR decision. This factor not only affect the talent pool but
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also affect the ability to hire someone i.e. HR planning. Such that is the economic condition of
the country is fluctuate then the HR has to take some steps in order to cop up the situation such
that lower down the cost of offered products (4 external factor that affect HRM, 2018).
Therefore, it is quite necessary for the firm to make planning so that it does not affect even in
adverse economic condition of the country.
Technological factor: This factor also affect the system in adverse way such that when
new technologies are introduced, then HR department start looking different ways to use those
into the working area. In the same case, HR of Tesco and M&S also uses different strategy in
such as provide training session to their employees in order to adopt the technological change
(Papa and et.al., 2018).
Legal factor: This factor also affects the HR decision of Tesco as well as Marks and
Spencer. Such that if the firm did not adhere it, then they have to pay high amount of penalty and
thus it may affect the financial position of the company. Such that as per National Minimum
wage act,1948, the firm has to pay minimum wages to their employees and it has been realised
that the both firm obey this law and pay minimum wages so that it will help to keep the brand
image in market (Scholl, 2019). Therefore, the HR manager of the firm should be aware of all
the legislations which are enacted by the government such as Factories Act, 1948, Trade Unions
Act, 1926 etc. Moreover, the Trade Unions is also major power block and with the formation of
Union, the issues are relating to the employees interest are also affected the HR decisions.
Labour market: Labour martket is the availablity of employment and labour and both
firm have high skilled workforce which help a firm to produce the best quality of products in
order to satisfy the needs of their customers.
If the employees have low level of trust and have repetitive work, then it affect the
employee engagement and the chances are increases to leaving job. Thus, it is the duty of HR to
keep involving their employees in decision making so that they feel comfortable. Moreover, they
have to pay compensation packages in order to attract candidates. Thus, this factor affect the
entire HR decision making and working environment as well. Moreover, TESCO have union
workplace in which a leader set out the rules and regulations while on the other hand, Marks and
Spencer have non- unionised workforce in which the employer makes all the rule, set wages rates
and decisions such as promotions, hours of work. Therefore, the HR are directly affected through
it because if the important decisions are taken by the employees then the HR work gets affected.
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3. Analysing how HR functions are delivered
In TESCO the HR functions are organized through recruiting and selection method such
that the firm uses internal recruitment method in which the firm uses already existing workforce
to fill the vacant position. While on the other side, Marks and Spencer uses external method of
recruitment, in which firm uses different option in order to find the best suitable candidate to fill
the vacant seats.
There are different ways through which the HR functions are delivered and among that
Ulrich model is consider the best way. This model is best suited model that transforming HR
function to their employees as well as customers. As the model states that there are many ways
through which the HR policies are delivered such as:
HR business partner: In this, they are should communicate with the internal clients in
order to deliver the HR policies. HR business partner also provide feedback about the quality of
their experience and also identifies the top talent in an organisation which further helps to
promote the overall productivity. As HR of Tesco uses internal method of recruitment method,
then it is quite beneficial to use HR business partner in order to deliver the HR policies withing
working area.
Change agents: This is used when the organization wants to alter their goals and at time,
change agent helps to communicate the those organizational change internally.
Administration Expert: This role is effective when the HR is responsible for numerous
types of task. Moreover, the administration expert also follows the changes in legislations,
regulations and other type of labour or trade law.
Employee advocate: In this, the HR department is responsible for staying aware of the
employee interest and also makes sure that they all are protected and also uses survey method in
order to measure the employee satisfaction level.
Further it has been analysed that there are so many companies which lacking an HR
integrated system and further these gaps creates inefficiency. Therefore, using Ulrich model will
help to keep delivering the functions to their employees (Bailey and et.al., 2018). HR of Tesco
uses this model because it creates unified structure that delivers value and also defines the role of
Human Resource management that helps to create a competitive advantage for the firm in
market.
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Role of Line manager: Line manager plays a significant role in order to deliver the HR
functions. Such that line manager help HR in recruiting and hiring talent procedure in order to
fill the vacant positions. Further in Tesco and Marks and Spencer, line manager also provide
training sessions and also support the new candidate in order to make them comfortable in the
working area. Apart from this, through cross- training, Line manager also ensure that the job
rotation and training sessions are good enough which further helps to raise their working
performance. Moreover, they are engage with other manager in an organization, then evaluate
their team performance and also deliver the performance reviews to HR (Taylor, Doherty and
McGraw, 2015). They are also responsible that the quality of the products which are provided to
their customers is in standard form and beside this, line manager also maintain employee and
labour relations because they posses the skills set which is required to work in such type of areas.
Beside this, line manager of Tesco and Marks and Spencer also influence the employee
satisfaction and engagement so that it will help to raise organization productivity as well as
customer satisfaction. As Talent development is the key priority of every firm and the line
manager thus line manager also takes control of promotion of some talented professionals in
their team.
Challenges of line manager: While working with HR of the firm, the line manager also
have variety of challenges and some of them are as mentioned below:
Lack of identification with management goals: it is one of most common challenge
which line manager faces such because of miss- communication, sometimes the line manager did
not easily identify the goals which are prescribe by the authority. As a result, they will shifts
from the long term goals to short term goals. Therefore, at that time they faces issues regarding
the lack of identification of goals (Collings, Wood and Szamosi, 2018).
Lack of knowledge: It is another challenge that is faces by the line manager such that
they did not posses good knowledge as HR have. Therefore, due to lack of competency in HR
work, they are not able to provide proper training sessions to their employees and they are not
able to raise the working performance level of the company. As a result, if the people do not
posses proper knowledge regarding recruitment and selection procedure then they will not able
to find the best candidate for the system (Brewster, Chung and Sparrow, 2016).
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CONCLUSION
By summing up above report it has been concluded that strategic human resource
management plays a crucial role in Tesco and Marks and Spencer. As report concluded that the
quoted firm follows HCHRM and best fit HRM. On the other hand, M&S follows soft HRM
while Tesco follows hard HRM approaches. Further, study also concluded that there are some
external factors that also influence the HR strategic decisions such as political system, legal
factor, labour market etc. Beside this, report concluded that Tesco follow Ulrich model in order
to deliver the HR functions and line manager also help them to make HR's planning successful.
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REFERENCES
Books and Journals
Ansoff, H. I. and et.al., 2019. Implanting strategic management. Springer.
Bailey, C. and et.al., 2018. Strategic human resource management. Oxford University Press.
Brewster, C., Chung, C. and Sparrow, P., 2016. Globalizing human resource management.
Routledge.
Chams, N. and García-Blandón, J., 2019. On the importance of sustainable human resource
management for the adoption of sustainable development goals. Resources, Conservation
and Recycling.141. pp.109-122.
Collings, D. G., Wood, G. T. and Szamosi, L. T., 2018. Human resource management: A critical
approach. In Human Resource Management (pp. 1-23). Routledge.
Kasemsap, K., 2019. Promoting strategic human resource management, organizational learning,
and knowledge management in modern organizations. In Advanced Methodologies and
Technologies in Business Operations and Management (pp. 879-891). IGI Global.
Papa, A. and et.al., 2018. Improving innovation performance through knowledge acquisition: the
moderating role of employee retention and human resource management practices. Journal
of Knowledge Management.
Scholl, H. J., 2019. Strategic Overhaul of Government Operations: Situated Action Analysis of
Socio-Technical Innovation in the Public Sector. In Strategic Management and Innovative
Applications of E-Government (pp. 72-106). IGI Global.
Storey, J., Ulrich, D. and Wright, P. M., 2019. Strategic Human Resource Management: A
Research Overview.
Taylor, T., Doherty, A. and McGraw, P., 2015. Managing people in sport organizations: A
strategic human resource management perspective. Routledge.
Online
4 external factor that affect HRM. 2018. [Online]. Available through:
<https://blog.shrm.org/blog/4-external-factors-that-affect-human-resource-
management>.
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