Human Resource Management Report: Tesco HRM, Practices and Legislation

This report provides a comprehensive analysis of Human Resource Management (HRM) practices within Tesco Plc, a major retail organization. The report begins with an introduction to HRM and its significance, particularly in the context of workforce planning and resourcing. It explores the purpose and functions of HRM, including recruitment, selection, job analysis, performance appraisal, and training and development, with specific examples related to Tesco. The report also assesses different HRM approaches, such as hard and soft HRM, and evaluates the strengths and weaknesses of both internal and external recruitment methods, along with various selection techniques. Furthermore, it examines the benefits of HRM practices for both employees and the employer, analyzes the impact of HRM practices on profit and productivity, and explores the importance of employee relations and employment legislation in HRM decision-making. The report includes a critical evaluation of HRM practices within the organizational context, offering a detailed overview of how Tesco manages its human resources to achieve its business objectives and maintain long-term sustainability.

HUMAN RESOURCE
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
ACTIVITY 1....................................................................................................................................3
P1. Purpose and functions of HRM applicable to workforce planning and resourcing..............3
M1. Assessment of HRM functions in providing talent and skills to fulfil business objectives 6
P2. Strengths and Weaknesses of different approaches to recruitment and selection.................6
M2. Evaluation of strengths and weaknesses of approaches to recruitment and selection.........8
D1. Critical Evaluation of strengths and weaknesses of approaches to recruitment and
selection.......................................................................................................................................9
ACTIVITY 2..................................................................................................................................10
P3: Benefits of HRM practices within an organisation for employee and employer................11
P4: Different HRM practices in terms of profit and productivity for company........................12
M3: Specific example to support evaluation of practices within an organisation....................13
D2: Critically evaluate HRM practices within an organisation context ..................................13
ACTIVITY 3..................................................................................................................................14
P5. Importance of employee relations in influencing HRM decision-making..........................14
P6. Key elements of Employment Legislation and their impact on HRM decision-making....14
M4.Evaluation of key aspects of employment relations and legislation affecting HRM
decision-making........................................................................................................................15
P7. Application of HRM practices............................................................................................15
M5. Rationale for application of specific HRM practices........................................................17
D3. Critical evaluation of employee relations and application of HRM practices...................17
CONCLUSION..............................................................................................................................18
REFERENCES..............................................................................................................................19

INTRODUCTION
Human Resource Management refers to the procedure of managing the human resource
of a company. The employees are the driving force of an organisation and it is imperative that
their performance is measured effectively by the Human Resource Department. The agenda of
Human Resource Management is to develop competence in an organisation's employees and gain
a strong competitive advantages. The assignment below is based on Tesco Plc, one of the biggest
retail organisation in the United Kingdom. It covers purpose and scope of HRM in resourcing an
organisation with talent and skills and effectiveness of key elements of Human Resource
Management in the company. It also covers analysis of internal and external factors affecting
HRM decision-making including employment legislation. The report also includes application of
Human Resource Management Practices (Bello‐Pintado, 2015).
ACTIVITY 1
P1. Purpose and functions of HRM applicable to workforce planning and resourcing
For an organisation as big as Tesco, it is important that its employees are managed and
their performances are measured and maintained in a consistent way that contributes to
organisation's wellbeing and long term sustainability.
Workforce planning is a process under which an organisation sees to it that their needs
regarding the human capital is fulfilled which is necessary for the firm to perform effectively.
The purpose of HRM in fulfilling this need for Tesco is mentioned below:
 It would manage the benefits that could be acquired by employees of the company. In this
manner, it would motivate the workforce in working more effectively.
 It would help Tesco in developing long-term employee relations which would help the
firm in retaining the skilled talent.
 It would also avoid conflicts between employees which would facilitate internal customer
management.
 Human Resource Management would provide cultural integration that would enhance the
scope of workforce planning in Tesco.
However, there are different models in HRM that could be adopted by Tesco to manage
their human resources. These models are discussed below:
Hard Human Resource Management

Under this approach, Tesco would consider its employees as resources like equipments
and machinery. The focus of the company would be on the needs of workforce in the company
and manage the human resources according to this need. For instance, Tesco would terminate
their employees in case they are inefficient if they follow this approach.
Soft Human Resource Management
This approach would persuade Tesco to consider its employees as the most important
asset for the firm to gain a competitive advantage. Their needs are addressed and they are
motivated towards achieving better outcomes. As an example, Tesco would motivate the
employees by giving them certain incentives which would fulfil their need and contribute in their
performance enhancement (Chowhan, 2016).
In context of Tesco, there are various skills of HRM which are described below: Communication Skills: It is essential for HR managers to be effectively communicate to
the employees in terms of describing job roles, policies and information regarding their
tasks. Problem Solving: HR Managers must solve problems of the workforce which would
allow the employees to be more dedicated in fulfilling their job responsibilities.
 Evaluation: It is an essential skill to have in HR managers of Tesco. Performances of
employees must be evaluated in a way that it gets easier to find out their shortcomings
and eliminate their inefficiencies.
In Tesco there are various functions of HRM which are described below: Recruitment/Selection: The most important function of HRM is recruiting a pool of
skilled and talent individual according to needs of the company. HRM would contribute
in Tesco achieving its business objectives by recruiting prospective candidates. Selection
is another important aspect which would require Tesco to select individuals out of the
recruited people that are most fit for the job. HRM would allow the firm to define the
aspects required by these individuals clearly which would help the firm in hiring best
employees for the company (Zibarras and Coan, 2015). Job Analysis: HRM would allow Tesco to specify each job on the basis of skills,
qualification and experience necessary for the position. It would help the firm in hiring
right person for the right job which would ensure its future sustainability and growth.

 Performance Appraisal: With a huge workforce, Tesco is required to assess and analyse
the performance of each individual working within their firm. HRM would allow the firm
to employ methodologies that would aid the purpose and appraise the performance of its
workforce which would determine the areas of inefficiencies in their performances in a
systematic way (Caligiuri, 2014).
 Training & Development: One of the most important function of HRM is to provide
effective training to the new as well as existing employees of Tesco. HRM would clearly
articulate the strengths and weaknesses of each individual working within the firm and
would allow the managers to strengthen areas with a scope of improvement in ways
which would enhance their performance.
(Source: Functions of HRM, 2018)
Illustration 1: Functions of HRM

M1. Assessment of HRM functions in providing talent and skills to fulfil business objectives
In Tesco, functions of HRM would be effective enough for the firm to fulfil its short as
well as long-term objectives with utmost convenience and ease.
 Recruitment and selection of employees would allow the firm to interact with various
individuals whose innovative and creative mind-set could be beneficial for the firm in the
long run.
 Job analysis would help employees in understanding their roles and responsibilities
regarding their job roles as it would articulate the needs for a specific job profile.
 Performance appraisal would allow Tesco to define standards for its employees to
achieve and measure deviations in the results effectively.
 Effective training would motivate employees in achieving the goals and would enable the
firm in expanding its horizons for different strategies according to market.
P2. Strengths and Weaknesses of different approaches to recruitment and selection
There are various method which Tesco could adopt to recruit as well as select employees
in their organisation (Wilton, 2016). This would depend on their agendas on what approaches
they adopt for recruiting their employees. There are two types of approaches, Internal and
External. Benefits and advantages of both are briefly discussed below:
INTERNAL APPROACH:
In this approach, Tesco would search for potential employees within their company. As
an example, if a vacancy arises in the firm, the firm would choose potential individuals within
the organisation itself. There are three methods which Tesco could possibly adopt: Transfer: This refers to a process under which company would shift individuals from
their current jobs to similar posts. Their ranks, prestige and responsibilities would be
similar. In addition, the number of employees in the firm would remain the same (Storey,
2014). Promotion: Under this process, an employee is placed on a higher position which also set
a higher standards regarding their duties, responsibilities as well as pay-scale. This would
motivate the employees and would enhance their performance levels.
 Internal Recruitment: This refers to the process in which firms hire individuals related to
a present employee working in the company. This would allow employees to present
individuals that are most appropriate for the vacant position.

Advantages of Internal Approaches:
 It helps in improving the morale of employees and motivates them to work efficiently.
 This approach help in facilitation of loyalty among the employees regarding the company
and its operations.
Disadvantages of Internal Approaches:
 Internal Approaches would eliminate possibilities for outside talent to be a part of the
organisation and contribute in its success.
 This method is least effective when creative thinking and innovation are the aspects
required for the particular job role.
EXTERNAL APPROACH:
Tesco, in this approach, would choose external methods to hire individuals for their
organisation. This approach is generally adopted by companies where the existing employees are
not fit enough to be placed to a certain position, or when the firm is expanding its workforce. The
methods under this approach are described below: Advertisements: In this methods, Tesco would provide advertisement using print,
television or social media regarding the vacant position in their company. The focus on
creating advertisements is on articulating the specifications for the job effectively which
only attracts individuals who are right for the role. Online Job Websites: Currently, there are various job portals which could allow Tesco
to recruit individuals for their organisation. Moreover, the firm could give a job vacancy
at their company website to hire individuals.
 Recruitment Agencies: Tesco could approach various recruitment agencies that
specialises in providing a pool of candidates specifically for required job performance
(Smith, 2014).
Advantages of External Approaches:
 It ensures the firm to find appropriate person for the job and eliminates limitations of
internal approach.
 It serves best as it brings individuals with new ideas that could be fruitful for the firm.
Disadvantages of External Approaches:
 The prime disadvantage of this approach is that it's costly.

 It demotivates existing employees who seek improvement and enhancement in their job
roles.
There are different types of approaches that could help Tesco in selecting the best out of
the recruited candidates. Some of the approaches that could help the firm in achieving this are as
follows: Ability Tests: Under this approach, Tesco would judge the individual on the basis of
knowledge they possess regarding their job roles. Situational Tests: These tests are based on determining the reaction as well as behaviour
of the candidate during specific situations. It also identifies ways in which the individual
handles the situation.
 Personal Interviews: One-on-one interviews are the most effective interview types and
involves a personal interaction between the candidate and an organisational personnel
authorised to take the interview (Marchington and et. al., 2016).
Advantages of Selection Approaches:
 It determines the skills and aptitude of candidates which is crucial for judging their
effectiveness for the role.
 The results in these approaches are least likely to be manipulated by test takers of the
firm.
Disadvantages of Selection Approaches:
 This process maybe time consuming for the company.
 Subjective questions are also ranked which eradicates its inefficiency (Jackson, Schuler
and Jiang, 2014).
M2. Evaluation of strengths and weaknesses of approaches to recruitment and selection
 Internal approaches of recruitment are effective for Tesco when it is looking to enhance
performance of its existing employees as it effectively enhances their morale. However,
the firm would not be able to formulate any new strategies as internal approaches restrict
the entry of outside talent.
 External approaches invite new individuals which creates new opportunities of the firm.
The demerit of this approach, however, is that it adds to the cost which is not the case in
internal approaches.

 Various selection approaches are reliable in case Tesco needs effective judging before
selection of candidates but is not effective in case immediate needs arise for the firm to
hire individuals.
D1. Critical Evaluation of strengths and weaknesses of approaches to recruitment and selection
According to Guest, 2011, internal recruitment would be beneficial to Tesco in case it
adopts soft HRM and wants commitment of its employees towards the company as it promotes
loyalty. But this approach has least suitability in case the firm is looking for innovation in its
process and products. In case of external approaches, innovation could easily be implemented
with creative thinking of new employees. But it will not be favourable for the financial facet of
the firm. Selection results cannot get manipulated which effectively could help Tesco in hiring
talented staff. But on the subjective front, the results might be ineffective which could be a
disadvantage for the company.

ACTIVITY 2

P3: Benefits of HRM practices within an organisation for employee and employer
Main aim of HRM practices is to implement them properly so that maximum utilisation
of resources would attain. These practices help employees and employers to improve their
performance while working which results in increasing overall productivity of Tesco. Different
practices which could be use by company is given below with functional example,
 Training and development: Training refers to inculcating skills and capabilities to the
employees so that they can perform their specific task with maximum potential. It helps
company to enlarge their knowledge base so that they can compete with other
companies in critical environment so to gain competitive advantage.
▪ Employee benefits: If employees are equipped with proper skills and
competencies then they would be able to excel at their work which would
enhance their morale and also motivate them . Motivated employees are the most
productive employees as they will enjoy their work while working.
▪ Employer benefits: If Tesco employees are working with full productivity then
they will improve their quality and quantity of work which would help Tesco to
improve their sales and profitability. If overall company productivity is high,
then chances of gaining competitive advantage is also high.
 Performance management: It is a process of monitoring and analysing the performance
of new as well as existing employees so to remove their weakness and improve their
performance. Besides this other aim is to clarify the roles and responsibilities of
employees so to set their goals accordingly.
▪ Employee benefits: If employees have better knowledge about the work they
have been assigned then it would help them to focus on their work with full
efficiency. Apart from that if employee’s weakness is been removed after
monitoring their performance then it would improve their performance and
promotes job satisfaction.
▪ Employer benefits: If Tesco employees are working with their full potential
then it would enlarge overall performance of employees. It would also reduce
employee turnover rate as they are satisfied in what they are doing which will
leads to reduction in acquisition cost.
 Enhancement in Quality: It is a process of promoting enhancement in quality of work

employees are doing to improve customer satisfaction towards company's products. If
customers are getting better quality of product, then it would automatically increase
retention rate of customers.
▪ Employees benefits: Company provides training to their employees through
workshops, online classes, on the job training etc. so to improve their
capabilities. If employees are equipped with latest skills and capabilities, then it
would improve their working style resulting in better satisfaction at job and
morale.
▪ Employer benefits: Main focus of Tesco is to satisfy customer needs and
demand so to earn more profit. If it is achieved by them then it will improve
company's goodwill, efficiency and effectivity, reduction in production cost etc.
 Selective hiring: It is a process of recruiting and selection of potential candidates so to
fill out the vacant post in the company. It is based on the mission and vision of the
company as if less candidates are recruited then company cannot utilise their resources
to its fullest and if they deploy more than it would reduce employees potential as they
cannot work with their full efficiency because of shortage of work.
▪ Employees benefits: If candidates are recruited according to their expertise then
it would assist them to perform with full potential thus improving morale and
confidence of employees.
▪ Employer benefits: If individuals are recruited according to their requirements
at the workplace then company would be able to attain maximum utilisation of
resources which is good for the company while competing with other players in
the market.
P4: Different HRM practices in terms of profit and productivity for company
If HRM practices if properly implemented at the workplace, then it would increase
company's profitability and productivity as practices aim is to increase the overall productivity
of organisation. Different practices with their advantages is given below, Training and development: Focus of T&D is to provide all the expertness which is
requires to accomplish assigned task to employees so that they can perform with their
best potential. If employees are using skills according to their work, then it will increase